National Policy (effective October 16, 1998): NP - 34-201 - Breach of Requirements of Other Jurisdictions

 

NATIONAL POLICY 34-201

BREACH OF REQUIREMENTS OF OTHER JURISDICTIONS

Breach of Requirements of Other Jurisdictions - The breach by a registrant or anapplicant for registration or reinstatement or renewal of registration of Canadian securitieslegislation or Canadian securities directions of a jurisdiction, other than the localjurisdiction, or the securities laws, regulations or rules of a foreign jurisdiction or the by-laws, rules, regulations, policies, procedures, or practices of a stock exchange,commodities exchange, commodity futures exchange or other self-regulatory organizationapplicable to the registrant or applicant, that were adopted for the protection of investorsor to foster fair and efficient capital markets and confidence in capital markets, may beconsidered by the securities regulatory authority to be prejudicial to the public interest andto affect the fitness for registration or continued registration of the applicant or registrant.

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NOTICE OF NATIONAL POLICY 34-201
BREACH OF REQUIREMENTS OF OTHER JURISDICTIONS
AND RESCISSION OF NATIONAL POLICY STATEMENT NO. 17

Notice of National Policy

The Commission has adopted National Policy 34-201 Breach of Requirements of OtherJurisdictions and rescinded National Policy Statement No. 17 Violations of Securities Lawsof Other Jurisdictions -- Conduct Affecting Fitness for Continued Registration.

National Policy 34-201 comes into force and National Policy Statement No. 17 is rescindedon October 16, 1998.

Substance and Purpose of National Policy

The purpose of the National Policy is to give notice to registrants and applicants forregistration or renewal or reinstatement of registration in a jurisdiction that a breach by theapplicant or registrant of securities legislation, including regulations and rules, directionsor policies, or self-regulatory organization regulatory instruments, of another jurisdictionor a foreign jurisdiction, may be considered to affect the fitness for registration orcontinued registration of an applicant or registrant. The National Policy will facilitateconsistent and co-operative treatment of conduct of registrants and applicants.

The National Policy is an initiative of the Canadian Securities Administrators (the "CSA"),and is being adopted as a policy in each of the jurisdictions represented in the CSA. TheNational Policy is substantially similar to National Policy Statement No. 17 -Violations ofSecurities Laws of Other Jurisdictions -- Conduct Affecting Fitness for ContinuedRegistration, which it replaces, but expands the scope of the instruments the breach ofwhich may be considered by the CSA. National Policy Statement No. 17 was initiallypublished in June 1978.

Terms used in the National Policy that are defined or interpreted in a definition instrumentin force in the jurisdiction should be read in accordance with that definition instrument,unless the context otherwise requires.

Summary of National Policy

The National Policy applies to registrants or applicants for registration or renewal orreinstatement of registration. A breach by an applicant or registrant of the securitieslegislation (including regulations and rules), directions or policies, or the regulatoryinstruments of stock exchanges or other self-regulatory organizations, of any jurisdiction,whether Canadian or international, that were adopted for the protection of investors or tofoster fair and efficient capital markets and confidence in capital markets, may beconsidered to be prejudicial to the public interest and to affect the fitness for registrationor continued registration of the applicant or registrant.

Written Comments Received by the CSA

A draft of the National Policy was published for comment in the Ontario SecuritiesCommission Bulletin on February 13, 1998 ((1998), 21 OSCB 968). Certain of the otherCSA members also published the draft for comment on or about that time. The CSAmembers received no written submissions with respect to the National Policy and nochanges have been made from the draft.

National Policy

National Policy Statement No. 17 is replaced by the National Policy and will be rescindedeffective September 25, 1998. The text of the National Policy follows.

Text of Rescission of National Policy Statement No. 17

The text of the rescission of National Policy Statement No. 17 is:

"National Policy Statement No. 17 entitled "Violations of Securities Laws ofOther Jurisdictions -- Conduct Affecting Fitness for Continued Registration"is rescinded."

DATED: October 16, 1998.