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Volume 62, No. 12

119/2019

The British Columbia Gazette,

Part II

June 18, 2019

B.C. Reg. 119/2019 , deposited June 5, 2019, under the SECURITIES ACT [section 184]. Rule of the British Columbia Securities Commission, dated June 5, 2019.

The British Columbia Securities Commission orders that, effective June 12, 2019, National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations , B.C. Reg. 226A/2009, is amended by repealing

section 14.6.1 (1) and (2) and substituting the following:

(1) In this section:

"cleared specified derivative" , "clearing corporation option" , "futures exchange" , "option on futures" , "specified derivative" and "standardized future" have the same meaning as in

section 1.1 of National Instrument 81-102 Investment Funds ;

"regulated clearing agency" has the same meaning as in subsection 1 (1) of National Instrument 94-101 Mandatory Central Counterparty Clearing of Derivatives .

(2) Subsection 14.5.2 (2) does not apply to a registered firm in respect of cash or securities of a client or investment fund deposited with a member of a regulated clearing agency or a dealer as margin for transactions outside of Canada involving clearing corporation options, options on futures, standardized futures or cleared specified derivatives if

(

a) the member or dealer is a member of a regulated clearing agency, futures exchange or stock exchange, and, as a result in any case, is subject to a regulatory audit,

(

b) the member or dealer has a net worth, determined from its most recent audited financial statements, in excess of $50 million, and

(

c) a reasonable person would conclude that using the member or dealer is more beneficial to the client or investment fund than using a Canadian custodian.

— B. M. LEONG, British Columbia Securities Commission .

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