Clarity and Consistency in Securities Rules

On September 11, 2023, the British Columbia Securities Commission (BCSC) enacted B.C. Reg. 209/2023, introducing a series of amendments to various National Instruments and the Securities Rules under the British Columbia Securities Act. These amendments primarily focus on clarifying definitions related to financial institutions and updating references to accounting standards.
Revisions were made to National Instrument 14-101 Definitions, where the definition of “Canadian financial institution” was expanded to encompass specific categories such as banks, insurance companies, credit unions, and other recognized financial entities. Additionally, the term “Handbook” was updated to refer specifically to the Chartered Professional Accountants of Canada Handbook for Accounting and Assurance, ensuring that practitioners use the most current standards. National Instrument 31-103, which governs registration requirements, also repealed the definition of “Canadian financial institution” and updated the calculation of excess working capital to align with the new “Handbook” definition.
National Instrument 33-109 has uniformly adopted the term “Handbook,” replacing previous references to the “CPA Canada Handbook” for clarity. Similarly, National Instrument 45-106 removed definitions for “bank” and “Canadian financial institution,” streamlining the language and clarifying conditions for certain exemptions through adjusted subparagraphs. National Instrument 62-103 enhanced the definition of “financial institution” to include authorized foreign banks listed in the Bank Act (Canada), reflecting a more inclusive approach to identifying institutions involved in financial activities. Furthermore, National Instrument 81-102, which regulates investment funds, replaced references to the “CICA Handbook – Assurance” with the term “Handbook,” promoting uniformity across regulatory documents. The overarching Securities Rules were also updated to align with these amended definitions, particularly the reference to the “Handbook,” ensuring that all regulatory documents are consistent and current.
The primary aim of these amendments is to improve clarity and consistency across the regulatory framework governing securities in British Columbia. By updating definitions and references, the BCSC seeks to provide clearer guidance to financial entities and registrants. This emphasis on the “Handbook” as a standard reference supports practitioners in adhering to the latest accounting and assurance guidelines. These changes hold particular significance for financial institutions and securities professionals, as they directly influence operational compliance with existing regulations. The removal of outdated definitions aims to reduce confusion and align British Columbia’s regulations with contemporary practices within the Canadian financial landscape.
By addressing key definitions and ensuring consistency across various National Instruments and Securities Rules, the BCSC strives to enhance regulatory clarity and support compliance among financial institutions and professionals.
British Columbia (209/2023) September 12, 2023