32-503 - Registration Exemption for Salespersons’ Corporations [BCI - Rescinded]

The British Columbia Securities Commission, having considered that to do so would not be prejudicial to the public interest, orders that the attached BC Instrument 32-503 entitled “Registration Exemption for Salespersons’ Corporations” is made. 

February 26, 2002

Douglas M. Hyndman

Chair

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(This part is for administrative purposes only and is not part of the Order)

Authority under which Order is made:

Act and sections:- Securities Act, s. 48

Other (specify):-

BC INSTRUMENT 32-503

Registration Exemption for Salespersons’ Corporations 

Order Under Section 48 of the Securities Act

Definitions 

In this Instrument,

“corporation” means a corporation incorporated under the laws of Canada or a province or territory of Canada, all of whose directors, officers and shareholders are salespersons of the same dealer or family members of those salespersons; 

“dealer” means a registered dealer that is a member of the Mutual Fund Dealers Association of Canada;

“registration requirement” means the requirement under section 34(1)(a) of the Act that prohibits a person from trading in a security unless the person is registered in the appropriate category under the regulations;

“salesperson” means an individual registered under the Act as a salesperson of a dealer; and

“securities business” means trading or advising in securities.

Exemption

A corporation is exempt from the registration requirement, in connection with receiving commissions and fees from a dealer, provided that the corporation and the dealer have a written contract under which the dealer is liable for the acts and omissions of the corporation that relate to securities business.