The British Columbia Securities Commission is considering requiring people to register as EMDs, even if they sell only private placement securities.
In 2009, British Columbia, Alberta, Manitoba, Saskatchewan, Northwest Territories, Nunavut, and Yukon provided an exemption from the requirement to register as EMDs for persons selling only private placement securities under the capital raising exemptions.
The BCSC also issued comparable relief specifically for mortgage investment entities.
With the rule in place for almost three years, the regulator’s analysis shows:
- Revoking the exemptions would have a negligible impact on capital raising (less than 1% of capital by dollar value would be impacted);
- There is significant non-compliance with the exemption’s investor protection conditions, thereby putting investors at greater risk; and
- Investors who are considering investing in private placement securities would be better protected if they purchase securities from a registered dealer.
The BCSC welcomes comments about this proposal in writing on or before February 4, 2013. Deliver your comments and refer your questions to:
Manager, Legal Services
Capital Markets Regulation
British Columbia Securities Commission
P.O. Box 10142, Pacific Centre
701 West Georgia Street
Vancouver, British Columbia V7Y 1L2