Securities Law

47-201 - Trading Securities Using the Internet and Other Electronic Means [NP Amendment Proposed - Lapsed]

Published Date: 2011-11-25
Rescinded Date: 2013-05-30
Document(s):

Concurrently Published:

1. National Policy 47-201 Trading Securities Using the Internet and Other Electronic Means is amended.

2. Section 2.7 is replaced with the following:

 2.7       Road shows

(1)  For the purposes of this Policy, “road show” has the meaning assigned in National Instrument 41-101 General Prospectus Requirements.

(2)  National Instrument 41-101 sets out the circumstances in which an investment dealer may hold a road show in connection with a distribution of securities, including a road show held over the internet or by other electronic means. 

(3)  Sections 13.8 to 13.13 of National Instrument 41-101 require that access to electronic road show materials be restricted and that the investment dealer must establish and follow reasonable procedures to

(a)  verify the identity and keep a written record of any investor attending the road show over the internet or by other electronic means;

(b)  ensure that the investor has received a copy of the prospectus and any amendment to the prospectus: and

(c)  restrict the copying of any materials provided in connection with the road show.

(4)  In this connection, the following procedures are recommended for a road show held over the internet or by other electronic means:

(a)  Pursuant to securities legislation, a copy of the filed prospectus is required to be made available to each viewer before each road show transmission, and each transmission should contain visual statements emphasizing that the information conveyed through the road show does not contain all of the information in the prospectus, which should be reviewed for complete information. A copy of the prospectus could be sent electronically to viewers in accordance with the guidelines contained in National Policy 11-201.

(b)  Electronic access to the transmission of a road show over the internet  or by other electronic means should be controlled by the investment dealer conducting the roadshow, using such means as password protection, in order to ensure that all viewers are identified and have been offered a prospectus.

(c)  An investment dealer should not transmit a road show to a person or company unless that person or company has agreed not to copy or further distribute the transmissions. An investment dealer should take reasonable steps to prevent copying or further distribution of transmissions.

3. These amendments become effective on ●.