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.
The BCSC is accepting comments on its proposals until February 4, 2013. For more information, see BCN 2013/01.