Notice of Commission Intention to Allow Lapsing of Rule: Limitations on a Registrant Underwriting Securities of a Related Issuer or Connected Issuer of the Registrant expires December 31, 2000

 

NOTICE OF COMMISSION INTENTION TO ALLOW LAPSING OF RULE IN THE MATTER OF THE LIMITATIONSON A REGISTRANT UNDERWRITING SECURITIES OF A RELATEDISSUER OR CONNECTED ISSUER OF THE REGISTRANT

The Commission is publishing in today's Bulletin Notices that set out proposedamendments to Rules, which were formerly deemed Rules, for the purpose ofextending their expiration dates.

No amendment has been proposed to extend the expiration date for the Ruleentitled In the Matter of the Limitations on a Registrant Underwriting Securities ofa Related Issuer or Connected Issuer of the Registrant (1997), 20 OSCB 1217,as amended by (1999), 22 OSCB 149 and (2000), 23 OSCB 285 (the"Underwriting Conflicts Rule").

The Underwriting Conflicts Rule is now scheduled to expire on the earlier of thedate on which a new rule intended to replace it comes into force and December31, 2000. Although it is now anticipated that no rule intended to replace theUnderwriting Conflict Rule will come into force before December 31, 2000, theCommission is not proposing an amendment to extend the expiration date for theUnderwriting Conflicts Rule because, the Commission understands, registrantsdo not rely upon the Rule, with those circumstances where there is difficulty incomplying with the provisions of clause 224(1)(b) of R.R.O. 1990, Regulation1015, as amended (the "Regulation"), which the Underwriting Conflicts Rulevaries, generally dealt with by way of a specific application pursuant to section233 of the Regulation. In many cases, the applications have beenrecommended to the Commission on the basis that the applicant demonstratescompliance with the latest version of proposed Multi-Jurisdictional Instrument33-105 Underwriting Conflicts, published for comment on February 6, 1998, at(1998), 21 OSCB 788.

Persons or companies affected by or concerned about the Commission'sintention not to extend the expiration date of the Underwriting Conflicts Rule areinvited to discuss their circumstances or concerns with staff of the Commission.

Questions may be referred to:

Robert Kohl
Senior Legal Counsel, Corporate Finance
Ontario Securities Commission
(416) 593-8233