Securities Law

32-516 - Exemption for Mortgage Investment Entities from the Requirement to Register as Investment Fund Managers and Advisers [BCI - Lapsed]

Published Date: 2010-08-20
Effective Date: 2010-08-20
Rescinded Date: 2010-12-31
Document(s):

Concurrently Published:

The British Columbia Securities Commission, considering that to do so would not be prejudicial to the public interest, orders that effective August 20, 2010, BC Instrument 32-516 entitled Exemption for Mortgage Investment Entities from the Requirement to Register as Investment Fund Managers and Advisers is made.

 

August 20, 2010

 

Brenda M. Leong
Chair and Chief Executive Officer
 ________________________________________________________________  
(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, sections 48(1), 187


 
BC Instrument 32-516

Exemption for Mortgage Investment Entities from the Requirement to Register as Investment Fund Managers and Advisers

Order under sections 48(1) and 187 of the Securities Act


Definitions

1. Unless otherwise defined in this decision or the context otherwise requires, terms used that are defined in NI 31-103 Registration Requirements and Exemptions (NI 31-103) or National Instrument 14-101 Definitions have the same meaning in this decision.

2. In this decision:

“mortgage investment entity” means a person or company whose purpose is to invest substantially all of its assets in debts owing to it that are secured by mortgages, hypothecs or in any other manner on real property, and whose other assets are limited to;

(a) deposits standing to its credit in the records of:

(i) a bank or other corporation whose deposits are insured by the Canada Deposit Insurance Corporation or the Régie de l’assurance-dépots du Québec; or

(ii) a credit union;

(b) cash;

(c) securities listed in subsection (2) of Section 8.21 of NI 31-103; and

(d) instruments held to hedge specific risks relating to the debts owing to it that are secured by mortgages, hypothecs or in any other manner on real property.

Background

3. A mortgage investment entity or a person or company providing services relating to the business, operations or affairs of a mortgage investment entity may be required to register as an investment fund manager, adviser or exempt market dealer and comply with all requirements applicable to such categories pursuant to the requirements of NI 31-103.

4. Each of the members of the Canadian Securities Administrators has agreed to review the applicability of the requirement for entities referred to in paragraph 3 to register as investment fund managers and advisers. 

Order

5. The adviser registration requirement does not apply to a person or company so long as the person or company;

(a) does not act as an adviser other than in respect of the securities issued by or owned by a mortgage investment entity, and

(b)  does not carry out activities that would require registration under securities legislation for a person or company that is not a mortgage investment entity.

6. The investment fund manager registration requirement does not apply to a person or company so long as that person or company;

(a) does not act as an investment fund manager other than in respect of the business, operations or affairs of a mortgage investment entity, and

(b) does not carry out activities that would require registration under securities legislation for a person or company that is not a mortgage investment entity.

7. This order will come into effect on August 20, 2010 and will cease to have effect on December 31, 2010.