Securities Law

33-905F - Report of working capital [F]

Published Date: 2001-03-30
Effective Date: 2001-03-28
Document(s):

This is the form required under sections 19(3), 19(5), 20(1), 20(2), 41(1)(c) and 70(3) of the Securities Rules.

BC FORM 33-905F (Previously Form 62)

SECURITIES ACT
REPORT OF WORKING CAPITAL

INSTRUCTIONS

This report, to be prepared by all mutual fund dealers, real estate securities dealers, scholarship plan dealers, portfolio managers and investment counsel at least monthly, must be filed on a periodic basis as required by section 70(3) of the Securities Rules or as described in a registrant’s conditions of registration. The calculation is intended to demonstrate an adequate level of available financial resources in conducting the day-to-day operations of the registrant’s business. Please note that minimum working capital prescribed in the Securities Rules is intended as a crisis threshold and that registrants should plan to maintain amounts significantly in excess of this amount on a daily basis. Any capital deficiency must be reported to the Executive Director immediately.

CONTENTS OF FORM

NAME OF DEALER / ADVISER: ____________________ FILE NUMBER: _______________________

CONTACT PERSON / TITLE: ______________________ TELEPHONE: _________________________

REPORTING PERIOD: _____________________________________________


                                                                                   Current Period                 Prior Period

(I) WORKING CAPITAL
CURRENT ASSETS:

Cash                                                           ______________ _____________

RRSP in trust                                            ______________ _____________

Cash in trust                                             ______________ _____________

Securities owned                                     ______________ _____________

Client Accounts                                        ______________ _____________

Recoverable & overpaid income taxes ______________ _____________

Interest & dividends receivable               ______________ _____________

Receivable from mutual fund 1                 ______________ _____________

Other commissions and fees receivable 1 ______________ _____________

Other third party receivables1                   ______________ _____________

Prepaid expenses                                      ______________ _____________



Other current assets (Specify)1:
______________________________________ ______________ _____________
______________________________________ ______________ _____________
______________________________________ _________________________________

TOTAL CURRENT ASSETS                                     ______________(A)  ________________(A)


1 NOTE: For the purposes of this calculation, any related party balances which are not generated in the “normal course” of the registrant’s business (e.g., intercompany or shareholder loans receivable are not generated from the normal revenue stream) are not considered as allowable current assets and should be excluded.


                                                                           Current Period          Prior Period
CURRENT LIABILITIES
Overdrafts & loans payable 2                    ______________ _____________

Trust liabilities                                             ______________ _____________

Variable compensation (commissions) payable ______________ _____________

Bonuses payable                                       ______________ _____________

Accounts payable & accrued liabilities  ______________ _____________

Client accounts                                          ______________ _____________

Income taxes payable                               ______________ _____________

Unsubordinated related party loans 2   ______________ _____________

Other current liabilities (Specify)2:
______________________________________ ______________ _____________
______________________________________ ______________ _____________
______________________________________ ________________________________

TOTAL CURRENT LIABILITIES                             ________________(B) ___________________(B)


2 NOTE: For the purposes of this calculation, all unsubordinated related party debt (e.g. intercompany or shareholder payables) are to be included as current, regardless of repayment terms or agreements.

EXCESS WORKING CAPITAL
Working Capital [(A) - (B)]                                                              ______________ _____________

Less: Minimum Working Capital                                                 ______________ _____________

Less: Maximum deductible under financial institution bond _______________ ______________


TOTAL EXCESS WORKING CAPITAL                                         _______________ _______________


(II) TRUST ACCOUNTS
Trust cash at period end                                                               ______________ _____________

Client credit balances                                                                    ______________ _____________



If deficiency in either of parts (I) or (II), date and description of method in which deficiency covered:

_________________________________________________________________________

_________________________________________________________________________

Signed:                                                           Title:                                     Dated:

              _________________________          _______________              ___________________


Revised March 28, 2001




Auditor’s Report
(Report of Working Capital)




TO: BRITISH COLUMBIA SECURITIES COMMISSION



We have audited the “Report of Working Capital” of__________________________________________________
                                                                                                                                  (dealer or adviser)
as at ______________________ , ______ and ______________________, ______.
            (month, day, year: current period)               (month, day, year: prior period)
The report is the responsibility of the __________________ management. Our responsibility is to express an
                                                                    (dealer’s or adviser’s)
opinion on the report based on our audit.

We conducted our audit in accordance with generally accepted auditing standards. These standards require that we plan and perform an audit to obtain reasonable assurance whether the report is free of material misstatements. An audit includes examining, on a test basis, the amounts and disclosures in the financial information. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial information.

In our opinion, this report presents fairly, in all material respects, the working capital and other presented financial
information of ______________________________________________ as at ______________________,
                                  (dealer or adviser)                                                                           (month, day, year: current period)
______ and ______________________, ______ in accordance with the provisions of the British Columbia
                       (month, day, year: prior period)
Securities Commission’s “Report of Working Capital”.



(signed)______________________________________
CHARTERED ACCOUNTANT or
CERTIFIED GENERAL ACCOUNTANT



City____________________________________________

Date____________________________________________


Revised March 28, 2001