VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/09/17 -- Today, the British Columbia Securities Commission (BCSC) issued two new instruments aimed at providing cost-effective and straightforward relief to holders of dormant cease-traded securities.
The new instruments will allow clients of investment dealers who hold cease-traded securities an opportunity to sell those securities to their investment dealer, provided specific conditions are met. The instruments will also provide cost savings to dealers, who in some cases will no longer need to maintain inactive accounts for securities their clients no longer wish to hold.
BC Instrument 57-502 - Partial variation of certain cease trade orders issued under section 164 to permit sales to investment dealers (BCI 57-502) and BC Instrument 57-503 - Partial variation of certain cease trade orders issued under section 161(1)(b) to permit sales to investment dealers (BCI 57-503) were both made effective February 9, 2017.
In order for investors to sell their cease-traded securities under the new instruments, the cease trade order must have been issued at least two years before the date of the sale to the dealer. The sale of the securities must also be for nominal consideration.
Investment dealers cannot trade any securities purchased under BCI 57-502 and BCI 57-503, but they may return the purchased securities to the initial issuing company to be cancelled.
This relief is only available in British Columbia, so any sale under these instruments must take place in British Columbia.
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
-- A securities market that is fair and warrants public confidence
-- A dynamic and competitive securities industry that provides investment
opportunities and access to capital
Learn how to protect yourself and become a more informed investor at www.investright.org.
Contacts:
Media Contact:
Alison Walker
604-899-6713
Public inquiries:
604-899-6854 or 1-800-373-6393 (toll free)
inquiries@bcsc.bc.ca
