The B.C. Securities Commission on Tuesday published for comment rules that would implement many of the provisions of its new regulatory model.

In May, the province passed a new securities act, which is expected to take effect in November. Today, the commission published for comment the proposed rules and other instruments that are necessary to implement the new legislation. These include the general securities rules and four special instruments: regarding takeover bids and issuer bids, exemptions for foreign market participants, mutual fund requirements and disclosure exemptions for non-redeemable investment funds.

Comments are due by Aug. 23.

The rules aim to streamline and simplify many current requirements and replace others with requirements that are more outcomes-based. They include a code of conduct for dealers and advisors that contains 25 rules replacing many of the current detailed, prescriptive, and process-based rules that govern rep conduct. It notes that reps who continue to comply with current SRO requirements will probably comply with the code in most areas. However, it may require changes in current practice in two areas – fee disclosure and conflict of interest.

The proposed rules also introduce firm-only registration and the continuous market access system for issuers; among other things. Other new rules will remove the current valuation requirement for insider bids, issuer bids and private transactions; provide exemptions from B.C. requirements for foreign market participants; set out offering and continuous disclosure requirements for mutual funds and exemptions for pooled funds and; retain a streamlined version of the self-dealing provisions and a streamlined approach to sales practices for mutual fund managers. Another new rule provides periodic disclosure relief for non-redeemable investment funds.

Later in the summer the BCSC will be consulting on a draft fee regulation. It will also retain the national instruments it needs for the new regulatory scheme, including those for shareholder communications and mining and oil and gas disclosure and examine the others to consider whether they should stay or go. It expects to publish a specific proposal for comment in early 2005.