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Proposed National Instrument 14-101 is intended to provide a nationally consistent approach to the interpretation and application of national instruments. It is also intended to provide a framework of terms that the Canadian Securities Administrators (CSA) have agreed upon for use in future National Instruments. This National Instrument does not contain any substantive provisions, and only sets out terms used in other National Instruments.
The proposed National Instrument sets out definitions for commonly used terms such as Canadian GAAP, securities regulatory authority, and definitions of terms used in more than one National Instrument.
The proposed National Instrument is an initiative of the CSA. It is expected to be adopted as a rule in B.C., Alberta, and Ontario, as a Commission regulation in Saskatchewan, and as a policy in each of the other jurisdictions represented by the CSA.
Numbering System for the Policy Reformulation Project
A numbering system that has been developed in connection with the Policy Reformulation Project, under which numbers are to be assigned to national instruments and, in certain jurisdictions such as Ontario, local instruments.
In the course of the Policy Reformulation Project, each existing National Policy has been analysed, first to determine whether it should be carried forward, and second to determine whether the reformulated instrument should be adopted as a Rule, Policy or Notice, and third to classify it within a subject matter grouping. The numbering system has been developed to accommodate local instruments. Nine subject matter categories have been established:
Procedure and Related Matters
Certain Capital Market Particulars
Registration Requirements and Related Matters
Distribution Requirements
Ongoing Requirements for Issuers and Insiders
Take-over Bids and Special Transactions
Securities Transactions Outside the Jurisdiction
Mutual Funds
Derivatives.
The B.C. Securities Commission has published a detailed notice, outlining the changes. NIN 96/23 has been reproduced in Volume 2 of the Canadian Securities Law Reporter at P.222-227.
National Instrument Proposed by CSADefinitions
Proposed National Instrument 14-101 is intended to provide a nationally consistent approach to the interpretation and application of national instruments. It is also intended to provide a framework of terms that the Canadian Securities Administrators (CSA) have agreed upon for use in future National Instruments. This National Instrument does not contain any substantive provisions, and only sets out terms used in other National Instruments.
The proposed National Instrument sets out definitions for commonly used terms such as Canadian GAAP, securities regulatory authority, and definitions of terms used in more than one National Instrument.
The proposed National Instrument is an initiative of the CSA. It is expected to be adopted as a rule in B.C., Alberta, and Ontario, as a Commission regulation in Saskatchewan, and as a policy in each of the other jurisdictions represented by the CSA.
The full text of the proposed National Instrument appears in the August 2, 1996 OSC Bulletin.
B.C.S.C. Compliance and Enforcement Division
The Compliance and Enforcement Division of the B.C. Securities Commission recently reported on its activities during 1995-96:
During that period, the Division responded to 735 complaints and referrals from Commission staff, other regulators, investors, and the industry, a slight decrease from the 817 files opened in 1994-95.
Of the total number of complaints and referrals, the Division opened 340 new investigation files on matters that deserved thorough review.
Staff investigations led to 28 Notices of Hearing being issued under the Securities Act, many of which involved multiple respondents.
Seven of the notices involved temporary enforcement orders.
At March 31, 1996, enforcement orders were outstanding against 300 individuals and companies, not including cease-trade orders issued for failure to file continuous disclosure materials.
IDA Issues Report on Capital Markets
The IDA recently issued a report on securities industry and capital markets developments:
Share prices were up 12% in 1995. The 7% gain in prices over the first half of 1996 faded in mid-July.
Cumulative trading on the four Canadian stock exchanges totalled $178 billion in the first six months of 1996, up 34% over the previous six months.
Copyright CCH Canadian Limited Sep 1996