B.C. adopts business conduct rule for derivatives dealers and advisers

VANCOUVER, BC, July 11, 2024 /CNW/ - The B.C. Securities Commission today published advanced notice of adoption of a comprehensive regime for regulating the business conduct of dealers and advisers in the over-the-counter derivatives market, including a number of provisions that are specific to B.C.

If approved by B.C.'s Minister of Finance, National Instrument 93-101 Derivatives: Business Conduct comes into force on September 28, 2024, and B.C. will join other Canadian securities regulators who published advanced notice of adoption in September 2023. With B.C.'s adoption of the Instrument and its related Companion Policy, the rule will become a National Instrument.

The instrument to be adopted by B.C. includes several provisions that were necessary due to differences between B.C.'s Securities Act's and securities legislation in other provinces.

For derivatives dealers and advisers, the framework establishes fundamental obligations that are aligned with international standards and include requirements related to fair dealing, conflicts of interest, suitability, reporting non-compliance, and record-keeping. The business conduct rule is intended to help protect market participants by improving transparency, increasing accountability, and promoting responsible business conduct in the derivatives market.

The business conduct rule was developed over an extensive three-stage consultation process that included a public roundtable to consider various regulatory, implementation, and compliance matters. In response to comments received during the most recent consultation, the final rule was streamlined to address potential negative impacts on derivatives market liquidity and to reduce implementation burden by better enabling firms to leverage their existing compliance systems.

About the B.C. Securities Commission (www.bcsc.bc.ca)

The B.C. Securities Commission, an independent provincial government agency, strives to make the investment market benefit the public. We set rules, monitor compliance by industry, take action against misconduct, and provide guidance to investors and industry. As guardians of B.C.'s investment market, we're committed to maintaining a market that is honest, fair, competitive and dynamic, enabling British Columbians to thrive.

Learn how to protect yourself and become a more informed investor at www.investright.org

SOURCE British Columbia Securities Commission

Media Contact: Brian Kladko, 604-899-6713; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free), [email protected]