The B.C. Securities Commission (BCSC) is extending its exemption from dealer registration requirements for trading in mortgage investment entities (MIEs) for yet another year.
Last year, the BCSC proposed to scrap its exemption for trades in MIEs after it found widespread non-compliance with the disclosure requirements in this area. Notably, the commission reported that it found 90% non-compliance with disclosure obligations by MIE issuers.
However, it ultimately decided to maintain the MIE dealer registration exemption to June 30 of this year. Now, it has decided to extend the exemption for another year, until June 30, 2015.
In an order to extend the exemption, the BCSC says that it “proposes to evaluate the impact of the dealer registration requirements on mortgage investment entities”; and, it notes that MIEs have argued that many of the existing registration requirements are inappropriate for their business.
In the meantime, the commission indicates that, “limited relief from the dealer registration requirements for mortgage investment entities would not be prejudicial to the public interest.”