CSA Staff Notice 45-304 Notice of Local Exemptions Related to National Instrument 45-106 Prospectus and Registration Exemptions and National Instrument 31-103 Registration Requirements and Exemptions Effective September 28, 2009, members of the Canadian Securities Administrators (CSA or we) implemented an amended and restated National Instrument 45-106 Prospectus and Registration Exemptions (NI 45-106) together with various consequential amendments to certain national and local instruments, rules and regulations. Also effective September 28, 2009, the CSA implemented National Instrument 31-103 Registration Requirements and Exemptions (NI 31-103). The registration exemptions contained in NI 45-106 will remain in effect for a transition period until March 27, 2010. Although NI 45-106 and NI 31-103 consolidate and harmonize most of the prospectus and registration exemptions available under Canadian securities laws, there remain a limited number of local exemptions in each jurisdiction. This notice lists the prospectus and registration exemptions in each jurisdiction that are not included in NI 45-106 or NI 31-103. These exemptions are listed by jurisdiction and apply only in that jurisdiction. Please refer to the Appendix attached to this notice. Although we have attempted to consolidate a list of all remaining exemptions by local jurisdiction, we encourage persons relying on a local exemption to consult the securities legislation of the jurisdiction. If a jurisdiction is not listed in the Appendix, please consult the securities legislation of that jurisdiction for any local exemptions. The list of exemptions in the Appendix is up-to-date as of November 27, 2009. Although the CSA will update the list of local exemptions periodically, issuers and their counsel should check the current status of any local exemption. Questions Questions about any of the local exemptions listed in the Appendix may be referred to the contact(s) for that local jurisdiction listed below: British Columbia Gordon Smith George Hungerford Senior Legal Counsel, Corporate Finance Senior Legal Counsel, Corporate Finance British Columbia Securities Commission British Columbia Securities Commission (604) 899-6656 (604) 899-6690 gsmith@bcsc.bc.ca ghungerford@bcsc.bc.ca
Alberta Taryn Montgomery Tracy Clark Legal Counsel Legal Counsel Alberta Securities Commission Alberta Securities Commission (403) 297-4968 (403) 355-4424 Taryn.Montgomery@asc.ca Tracy.Clark@asc.ca Saskatchewan Dean Murrison Deputy Director, Legal/Registration Securities Division Saskatchewan Financial Services Commission (306) 787-5879 Dean.Murrison@gov.sk.ca Manitoba Chris Besko Legal Counsel - Deputy Director The Manitoba Securities Commission (204) 945-2561 cbesko@gov.mb.ca Ontario Jo-Anne Matear Jason Koskela Assistant Manager, Corporate Finance Legal Counsel, Corporate Finance Branch Ontario Securities Commission Ontario Securities Commission (416) 595-8922 (416) 593-2323 jkoskela@osc.gov.on.ca jmatear@osc.gov.on.ca Robert F. Kohl (for NI 31-103) Senior Legal Counsel Registrant Regulation Ontario Securities Commission (416) 593-8233 rkohl@osc.gov.on.ca Quebec Sylvie Lalonde (for NI 45-106) Rosetta Gagliardi (for NI 45-102) Manager, Policy Department Senior Policy Advisor Autorité des marchés financiers Autorité des marchés financiers (514) 395-0337, ext. 4461 (514) 395-0337 ext. 4462 sylvie.lalonde@lautorite.qc.ca rosetta.gagliardi@lautorite.qc.ca - 2 -
Isabelle Pelletier (for NI 31-103) Legal Counsel Autorité des marchés financiers (514) 395-0337, ext. 2566 isabelle.pelletier@lautorite.qc.ca Nova Scotia Shirley Lee Director, Policy and Market Regulation Nova Scotia Securities Commission (902) 424-5441 leesp@gov.ns.ca New Brunswick Susan Powell Senior Legal Counsel, Regulatory Affairs New Brunswick Securities Commission (506) 643-7697 susan.powell@nbsc-cvmnb.ca Prince Edward Island Steve Dowling Superintendent of Securities Prince Edward Island (902) 368-4551 sddowling@gov.pe.ca Newfoundland & Labrador Don Boyles Program & Policy Development Securities Commission of Newfoundland and Labrador Government of Newfoundland & Labrador (709) 729-4501 dboyles@gov.nl.ca Yukon Fred Pretorius Director, Corporate Affairs (C-6) Dept of Community Services Government of Yukon (867) 667-5225 fred.pretorius@gov.yk.ca - 3 -
Northwest Territories Donn MacDougall Deputy Superintendent, Legal & Enforcement Office of the Superintendent of Securities Government of the Northwest Territories PO Box 1320 Yellowknife, NT X1A 2L9 Tel: (867) 920-8984 Fax: (867) 873-0243 E-mail: donald_macdougall@gov.nt.ca Nunavut Louis Arki, Director, Legal Registries Department of Justice, Government of Nunavut (867) 975-6587 larki@gov.nu.ca November 27, 2009 - 4 -
Appendix Local Exemptions - Alberta Alberta Securities Commission Rules Section 127.03 (Prospectus exemption for cooperatives and corporations under the Rural Utilities Act) Section 127.04 (Transitional: exemption of trades) ASC Rule 45-502 Trade with RESP ASC Rule 72-501 Distributions to Purchasers Outside Alberta ASC Rule 91-504 Strip Bonds Blanket Orders ASC Blanket Order 87/03/26 Certain Interests in Government Securities ASC Blanket Order 90/02/22 Trades of Government Warrants ASC Blanket Order 2005/10/21 Registration and Prospectus Exemption for Certain Capital Accumulation Plans ASC Blanket Order 91-503 Over-the-Counter Derivatives Transactions and Commodity Contracts Local Exemptions - British Columbia Commission Rules BC Instrument 45-501 Mortgages Blanket Orders BC Instrument 32-503 Registration Exemption for Approved Persons of the Mutual Funds Dealers Association of Canada BC Instrument 33-517 Registration and Prospectus Exemption for Persons Registered under the Mortgage Brokers Act BC Instrument 45-504 Trades to trust companies, insurers, and portfolio managers outside British Columbia BC Instrument 45-512 Real Estate Securities - 5 -
BC Instrument 45-514 The Employee Investment Act BC Instrument 45-524 Registration and Prospectus Exemption for Certain Capital Accumulation Plans BC Instrument 45-528 Trades under a realization on collateral given for a debt BC Instrument 45-529 Bonus or finders fee BC Instrument 45-530 Exemptions for securities issued by a cooperative association BC Instrument 45-531 Exemptions for shares or deposits of a credit union BC Instrument 72-502 Trades in Securities of U.S. Registered Issuers BC Instrument 72-503 Distribution of Securities outside British Columbia BC Instrument 72-504 Distribution of Eurobonds BC Instrument 81-504 Transactions Between Mutual Funds and Responsible Persons Relating to Certain Debt Securities, Mortgages and Equity Securities BC Instrument 91-501 Over-The-Counter Derivatives BC Instrument 91-502 Short Term Foreign Exchange Transactions BC Instrument 91-503 Contracts Providing for Physical Delivery of Commodities BC Instrument 91-504 Government Strip Bonds BC Instrument 91-505 Prospectus exemption for put and call options Local Exemptions - Manitoba The Securities Act (Manitoba) Section 19(1)(c) and 58 (1)(a) – Exempt Purchasers Sections 19(2)(g) and 58(3)(a) – Securities to which The Cooperatives Act apply Sections 19(2)(h) and 58(3)(a)– Securities to which The Credit Unions and Caisses Populaires Act apply Securities Regulation (Manitoba) Sections 91(a) and (b) of The Securities Regulation M.R. 491/88R - 6 -
Blanket Rulings (Manitoba) Local Policy 3.17 – Strip Bonds Local Exemptions – New Brunswick Rules Local Rule 45-501 Prospectus and Registration Exemptions Local Rule 45-802 Implementing National Instrument 45-106 Prospectus and Registration Exemptions Local Rule 81-502 Registration and Prospectus Exemption for Certain Capital Accumulation Plans Local Rule 91-501 Derivatives Local Exemptions – Newfoundland and Labrador Securities Act (Newfoundland and Labrador) Section 35 (Exemption of advisers) Section 36 (Exemption of trades) Local Exemptions – Northwest Territories Securities Act (Northwest Territories) Section 2 (Various exemptions from registration requirement) Blanket Orders Blanket Order No. 1 – Section 2 (Secondary Market Trading) Blanket Order No. 1 – Subsection 3(a) (Bona Fide Debts of Non-control Persons) Blanket Order No. 1 – Section 3(b) (Securities of a Cooperative) Blanket Order No. 1 – Section 3(c) (Distributions commenced in reliance on Blanket Order exemptions in effect prior to September 14, 2005) Blanket Order No. 2 – Subsection 2(a) (Bona Fide Debts of Non-control Persons) Blanket Order No. 2 – Section 2(b) (Securities of a Cooperative) Blanket Order No. 2 – Section 2(c) (Trades commenced in reliance on Blanket Order exemptions in effect prior to September 14, 2005) - 7 -
Local Exemptions - Nova Scotia Securities Act (Nova Scotia) Section 41(1) (ama) and (amb) (Registration exemption for securities of a cooperative) Section 41(2)(i) (Registration exemption for shares of a credit union within the meaning of the Credit Union Act) Section 77(1)(ah) (Prospectus exemption for securities of a cooperative) Section 78(1)(a) as it relates to section 41(2)(i) (Prospectus exemption for shares of a credit union within the meaning of the Credit Union Act) Rules NSSC Rule 35-101 Conditional Exemption from Registration for United States Broker-Dealers and Agents Regulations Section 3 of the Community Economic – Development Corporations Regulations – N.S. Reg. 79/98 (Registration and prospectus exemptions for shares of a community economic-development corporation) Blanket Orders Blanket Order No. 3 Zero Coupon Strip Bonds Blanket Order No. 15 Trading in Recognized Options Cleared Through Recognized Clearing Organizations Blanket Order No. 16 Trading in Commodity Futures Contracts and Commodity Futures Options Blanket Order No. 24 Certain Certificates for Government Securities Blanket Order No. 47 Distribution of Mutual Funds Established for Employees of a Company and Its Affiliates Blanket Order No. 45-507 A Registration and Prospectus Exemption for Certain Capital Accumulation Plans Blanket Order No. 45-509 Trades in Warrants to Acquire Certain Debt Securities Blanket Order No. 45-510 First and Subsequent Trades in Shares of a Community Economic-Development Corporation - 8 -
Local Exemptions – Nunavut Securities Act (Nunavut) Section 2 (Various exemptions from registration requirement) Blanket Orders Blanket Order No. 1 – Section 2 (Secondary Market Trading) Blanket Order No. 1 – Subsection 3(a) (Bona Fide Debts of Non-control Persons) Blanket Order No. 1 – Section 3(b) (Securities of a Cooperative) Blanket Order No. 1 – Section 3(c) (Distributions commenced in reliance on Blanket Order exemptions in effect prior to September 14, 2005) Blanket Order No. 3 – Subsection 2(a) (Bona Fide Debts of Non-control Persons) Blanket Order No. 3 – Section 2(b) (Securities of a Cooperative) Blanket Order No. 3 – Section 2(c) (Trades commenced in reliance on Blanket Order exemptions in effect prior to September 14, 2005) Local Exemptions - Ontario Securities Act (Ontario) Section 34 (Exemption from registration requirements, advisers) Section 35 (Exemption from registration requirements, dealers) Section 35.1 (Exemption from registration requirement, financial institutions) Section 73 (Exemption) Regulations Ontario Regulation 85/05 Exemptions respecting the Ontario Financing Authority Rules Ontario Securities Commission Rule 32-501 Direct Purchase Plans Ontario Securities Commission Rule 35-101 Conditional Exemption from Registration for United States Broker-Dealers and Agents Ontario Securities Commission Rule 35-502 Non Resident Advisers - 9 -
Ontario Securities Commission Rule 35-503 Trades by Certain Members of The Toronto Stock Exchange Ontario Securities Commission Rule 45-501 Ontario Prospectus and Registration Exemptions Ontario Securities Commission Rule 91-501 Strip Bonds Ontario Securities Commission Rule 91-502 Trades in Recognized Options – Rule Under the Securities Act Ontario Securities Commission Rule 91-503 Trades in Commodity Futures Contracts and Commodity Futures Options Entered into on Commodity Futures Exchanges Situate Outside of Ontario – Rule Under the Securities Act Local Exemptions – Prince Edward Island Rules Local Rule 45-501 - Exempt Distributions - Co-operative Associations Local Rule 45-502 - Exempt Distributions - Credit Unions Local Rule 45-507 - Exempt Distributions - Self-Directed Registered Education Savings Plans Local Exemptions - Québec Securities Act (Québec) Section 3 (exemptions) Section 41 (prospectus exemptions) Securities Regulation (Québec) Section 192 (registration exemptions) Regulation to amend the Securities Regulation (which came into force on September 28, 2009) Section 5 (registration exemption - transition period until December 28, 2009 for former s. 194.2 QSR) Derivatives Act (Québec) Section 7 (over-the-counter derivatives activities or transactions involving accredited counterparties only or in any other case specified by regulation). - 10 -
Regulation to amend the Derivatives Regulation Section 11.14 (registration exemption to the extent the person carries on business solely for an accredited counterparty and its activity involves a standardized derivative that is offered primarily outside Québec) General exemption decisions Decision 2000-C-0699: Registration exemption for dealers in respect of trading at a distance on NASDAQ Decision 2009-PDG-0007 Registration exemption for dealer and adviser activities relative to derivatives with accredited investors Local Exemptions - Saskatchewan General Rulings/Orders General Ruling/Order 21-901 Market Facilitation Activities by Issuers in Their Own Securities General Ruling/Order 45-902 Labour-Sponsored Venture Capital Corporations General Ruling/Order 45-912 Co-operatives and Credit Unions General Ruling/Order 45-913 Capital Accumulation Plans General Ruling/Order 45-916 Solicitations of Expressions of Interest General Ruling/Order 72-901 Trades to Purchasers Outside of Saskatchewan General Ruling/Order 91-904 Government Warrants General Ruling/Order 91-905 Certain Interests in Government Securities General Ruling/Order 91-906 Strip Bonds General Ruling/Order 91-907 Over-the-Counter Derivatives Local Exemptions – Yukon The Securities Act S.Y. 2007.c.16 (Yukon) Section 16 – If the Superintendent of Securities is satisfied that it would not be prejudicial to the public interest, the Superintendent may, by order exempt a person, security, trade, distribution or transaction from all or any provisions of Yukon securities laws. - 11 -
Yukon Local Rules Local Rule 11-802 – Adopting all CSA Instruments, Forms & Polices as amended and in force on September 28, 2009. Local Rule 12-501 – Exemption for discretionary exemptions applied before March 17, 2008, effective from March 17, 2008. Local Rule 15-501 – Exemption of certain contracts issued by Insurance Companies effective from March 17, 2008. Webpage: http://www.community.gov.yk.ca/corp/ysorules.html - 12 -
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.