Definitions

1   In this regulation:

"publish" includes posting information on a publicly accessible website maintained by the commission;

"rule" means a rule under section 184 of the Securities Act.

[en. B.C. Reg. 386/2003, s. 1.]

Approval in principle

2   (1) Except as provided in section 6 or 6.1, before making a rule the commission must

(a) provide to the minister a written explanation of the need for and the anticipated effect of the proposed rule,

(b) obtain the minister's written approval in principle to the proposal, and

(c) otherwise comply with this regulation.

(2) After receiving the explanation referred to in subsection (1) (a), the minister may

(a) approve the proposal in principle, with or without conditions, or

(b) disapprove the proposal.

[en. B.C. Reg. 386/2003, s. 2.]

Publication of proposed rule

3   (1) If the minister gives written approval in principle to the proposed rule, the commission must, before proceeding under section 5, publish

(a) the text of the proposed rule,

(b) an explanation of the proposed rule and the reasons for it, and

(c) a notice that public comment on the proposed rule may be provided in written form to the commission for a specified period of

(i) at least 30 days if the commission is republishing the proposed rule under section 4 (b), or

(ii) at least 60 days in all other cases.

(2) If the commission has not received notice of a decision under section 2 (2) within 30 days after providing the explanation referred to in section 2 (1) (a), the commission may publish the information referred to in subsection (1) of this section.

(3) If the proposed rule is published under subsection (2), the publication must include a notice that the minister's approval in principle for the proposed rule had not been obtained by the date of the publication.

(4) If, after a proposed rule is published under subsection (2), the minister notifies the commission that the minister disapproves the proposal, the commission must withdraw the proposed rule and must promptly publish notice of that withdrawal.

(5) The commission must wait the period specified under subsection (1) (c) before seeking the consent of the minister to the proposed rule under section 5 in order to allow interested persons to provide written comments to the commission on the proposed rule.

[am. B.C. Reg. 386/2003, s. 3.]

Alteration of proposed rule

4   If the commission wishes to alter a proposed rule after its publication under section 3 but before its deposit with the registrar of regulations, the commission must,

(a) if in its opinion the alteration changes the proposed rule in a material way and reflects a change in the need for or changes the anticipated effect of the proposed rule, make the alteration to the proposed rule and proceed under sections 2 and 3 as if the proposed rule, as altered, is a new proposed rule,

(b) if in its opinion the alteration changes the proposed rule in a material way but does not reflect a change in the need for and does not change the anticipated effect of the proposed rule, make the alteration to the proposed rule and proceed under section 3 as if the proposed rule, as altered, is a new proposed rule that had been approved in principle by the minister, or

(c) in any other case, make the alteration to the proposed rule and proceed under section 5 as if the proposed rule, as altered, had been approved in principle by the minister and had been published under section 3.

Consent to rule by minister

5   (1) After expiry of the period specified for the proposed rule under section 3 (1) (c) and after considering the comments received during that period, the commission must, before proceeding under section 7, obtain the minister's written consent to the proposed rule and, for that purpose, must provide to the minister

(a) the text of the proposed rule,

(b) a copy of the notice published under section 3,

(c) a copy of the written comments received in response to the notice, and

(d) the commission's written analysis of the significant issues and concerns raised by those comments.

(2) If the minister has neither consented to nor rejected the proposed rule within 60 days after receipt of the records referred to in subsection (1), the minister is deemed to have consented to the proposed rule.

Urgent rules

6   (1) If the commission proposes to make a rule under section 184 (7) of the Securities Act, it must obtain the minister's written consent to the proposed rule and to the making of the proposed rule under this section and, for that purpose, must provide to the minister

(a) the text of the proposed rule,

(b) an explanation of the need for and the anticipated effect of the proposed rule,

(c) the date on which it is proposed that the rule will become effective, and

(d) an explanation as to why the rule is proposed to be made under this section.

(2) If a proposed rule approved under this section is not deposited with the registrar of regulations within 10 days after the minister's consent under subsection (1) is obtained, the commission must notify the minister that the proposed rule has not been deposited and must provide its reasons for the delay.

(3) Failure to receive the consent of the minister required under subsection (1) does not prevent the commission from proceeding under sections 2 to 5 in respect of the proposed rule.

(4) Unless earlier repealed or revoked, a rule made by the commission and consented to by the minister under this section is revoked on the 275th day after it is deposited with the registrar of regulations.

[am. B.C. Reg. 386/2003, s. 4.]

Amendments to existing rules

6.1   (1) If the commission proposes to amend a rule, the commission must,

(a) if in its opinion the proposed amendment will change the rule in a material way, proceed under sections 2, 3 and 5, or

(b) if in its opinion the proposed amendment will not change the rule in a material way, obtain the minister's written consent to the proposed amendment, and for that purpose must provide to the minister

(i) the text of the proposed amendment, and

(ii) a written explanation of the need for and the anticipated effect of the proposed amendment.

(2) After receiving a proposed amendment under subsection (1) (b), the minister may

(a) consent to the proposed amendment,

(b) disapprove the proposed amendment, or

(c) approve the proposed amendment in principle, with or without conditions, and direct that the commission proceed under sections 3 and 5 with respect to the proposed amendment.

(3) If the minister has not notified the commission of a decision under subsection (2) within 30 days after receipt of the records referred to in subsection (1) (b), the minister is deemed to have consented to the proposed amendment.

[en. B.C. Reg. 386/2003, s. 5.]

Publication of rule

7   (1) After obtaining the consent of the minister required by section 5, 6 or 6.1, as the case may be, the commission, if it wishes to proceed with the making of the rule, must

(a) Repealed. [B.C. Reg. 386/2003, s. 6 (a).]

(b) deposit the rule with the registrar of regulations in accordance with the Regulations Act.

(2) After complying with the requirements of the Regulations Act for bringing the rule into force, the commission must, after depositing the rule with the registrar of regulations, publish

(a) the text of the rule, and

(b) the date on which the rule became or is to become effective, as the case may be.

(3) The commission must not take any action against any person under the Securities Act or under the regulations or rules made under that Act for a breach of a rule made under this regulation until the commission has substantially complied with all of the requirements of this section.

[am. B.C. Reg. 386/2003, s. 6.]

Regulation applies to repeal of rule

8   This regulation applies to the repeal of a rule.