The B.C. Securities Commission has scrapped its proposed firm-only registration plan.

“We have decided that it is not practical to proceed at this time with the firm-only registration system,” said BCSC chair Doug Hyndman, in a news release.

The BCSC was set to do away with individual registration when it implements new provincial securities legislation in November. But, citing “recent national developments in securities regulatory reform”, it is now dropping that plan.

“Quebec has now decided to join the National Registration Database system, making it a fully national system for registering securities firm representatives, and work is proceeding on a new passport system for registration. Implementing firm-only registration in B.C. Would complicate these processes,” Hyndman said.

Hyndman said that firm-only registration is still a sound approach to improving securities firms’ accountability for the hiring and conduct of their sales representatives. However, feedback and studies suggest its greatest benefits would come about if the system were adopted nationally. “Other securities regulatory bodies are not ready to adopt this system yet,” said Hyndman. “The work we have done will be useful when the time comes to pursue the idea again.”

Although the commission has dropped the firm-only registration proposal, it is sticking with its other reforms, it says. These include the new Code of Conduct requirements and obligations for firms to share information on representatives who move to other firms.

B.C.’s new Securities Act was passed in the provincial legislature on May 11. The commission invited public comment on the accompanying rules through Aug. 23, and is now fine-tuning details in preparation for the new legislation to take effect, expected on November 15.

Earlier this year, the BCSC calculated that, if adopted nationally, firm-only registration would save firms $12.6 million. If adopted in BC alone, firm-only registration would save BC- registered firms 43% of their current internal costs related to BC expenses, it found, chopping these costs to $2 million from $3.7 million.

However, it allowed that, “given the marginal role of BC registration cost in the national context, some unquantifiable part of the projected savings for national firms could be offset by the inefficiency of running a unique registration process in BC.”