Commission Approval of Rule: OSC Rule - 33-501 - Surrender of Registration

 

NOTICE OF RULE AND RESCISSION OF POLICY UNDER THE SECURITIES ACT

RULE 33-501

SURRENDER OF REGISTRATION

Notice of Rule and Rescission of Policy

The Commission has, under section 143 of the Securities Act (the "Act"), made Rule 33-501 Surrender of Registration (the "Rule").

The Rule and the material required by the Act be delivered to the Minister of Finance were delivered on January 28, 1998. If the Minister does notapprove the Rule, reject the Rule or return it to the Commission for further consideration, the Rule will come into force on April 13, 1998. If theMinister approves the Rule, the Rule will come into force fifteen days after it is approved.

The Commission has also on the date on which the Rule comes into force rescinded Uniform Act Policy Statement 2-07 which is replaced by the Rule.

Substance and Purpose of Rule

The substance and purpose of the Rule is to ensure that, upon application for surrender of registration, the registrant's registration is suspended. Thesuspension will provide a period of non-activity by the registrant, while the registrant remains subject to the oversight of the Commission, duringwhich the registrant will discharge its obligations. This will allow for an orderly discharge of obligations. The Rule requires the applicant to consent tothe suspension of its registration. The consent allows the Commission to suspend the registration without the procedural step of a formal hearing.

The Rule is substantially similar to Uniform Act Policy Statement 2-07 ("UAP 2-07"), which it replaces.

The original version of UAP 2-07 was published in November 1979. The policy advised registrants that upon receiving notice of a registrant's intentionto terminate its registration, the securities regulatory authority would normally suspend the registration pending receipt of satisfactory evidence thatthe registrant had discharged its obligations.

Summary of Rule

UAP 2-07 currently contains guidelines relating to surrender of registrations by registrants. The Rule replaces UAP 2-07 in Ontario and contains anobligation on an applicant for surrender of registration to provide a consent to the suspension of the registration.

The first sentence of UAP 2-07 has been reformulated and included in the Rule. The second sentence of UAP 2-07, which provides the suspension isremoved on receipt of evidence of discharge of the registrant's obligations, has not been included in the Rule, as once a surrender of registration isaccepted, the suspension is of no effect.

Summary of Written Comments

The Commission did not receive any comments on the Rule.

Text of Rule

The text of the Rule follows.

ecome Text of Rescission of Policy

The text of the rescission of Uniform Act of Policy 2-07 is as follows:

"Uniform Act of Policy 2-07 Surrender of Registration - other than salesman is rescinded effective the date Rule 33-501 Surrender of Registration bseffective".

DATED January 30, 1998.

ONTARIO SECURITIES COMMISSION RULE 33-501

SURRENDER OF REGISTRATION

Suspension on Surrender of Registration - An applicant that files an application to surrender registration as a dealer, underwriter or adviser shallinclude with the application a consent to suspension of the applicant's registration.