BCSC Proposes Revoking Certain Trade-Based And MIE Registration Exemptions

Last week, the British Columbia Securities Commission proposed revoking BC Instrument 32-513, which currently provides a registration exemption in respect of those that trade in certain prospectus-exempt securities. Similarly, the regulator also proposed revoking BC Instrument 32-517, which provides a dealer registration exemption related to trades in the prospectus-exempt securities of mortgage investment entities.

According to the BCSC, while it initially adopted the exemptions due to a lack of information on the impact of the EMD registration requirement, it has now determined that revoking the exemptions would have a "negligible impact" on capital raising. Further, the BCSC cites non-compliance with the exemptions, as well as the need to better protect investors as reasons for revocation.