Notice

General Ruling/Order 72-901 Trades to Purchasers Outside of Saskatchewan

On March 30, 2004, the Director of the Securities Division of the Saskatchewan Financial Services Commission made General Ruling/Order 72-901 Trades to Purchasers Outside of Saskatchewan (“GRO 72-901”).   

GRO 72-901 grants an exemption from the registration and prospectus requirements to an issuer for a trade of a non-convertible debt security of its own issue.  The exemption is subject to conditions.  The main ones are: 

• the trade is not made to a purchaser in Canada;
  
• the trade is made compliance with the securities laws of the jurisdiction where the purchaser resides; and
  
• the debt has been accepted for listing or quotation on a genuine market outside of Canada.

GRO 72-901 also grants an exemption from the registration and prospectus requirements to an issuer for a trade of a security of its own issue if: 

·         the trade is not made to a purchaser in Saskatchewan; and 

·         the trade is made compliance with the securities laws of the jurisdiction where the purchaser resides. 

There are other conditions, but these are the main ones.

GRO 72-901 deals with situations where a trade takes place in two jurisdictions, and is therefore subject to the securities laws of both jurisdictions.  It relieves issuers of duplicate regulation in these cases.  It is similar to the exemptive relief provided by Alberta Securities Commission Rule 72-501 Distributions to Purchasers Outside Alberta. 

March 30, 2004

Contact:

Dean Murrison
Deputy Director, Legal and Registration
Securities Division
Saskatchewan Financial Services Commission
(306) 787-5879
dmurrison@sfsc.gov.sk.ca