Notice: OSC Rule - 41-501 - General Prospectus Requirements and Forms (Repealed by 41-801 on March 17, 2008)

Notice: OSC Rule - 41-501 - General Prospectus Requirements and Forms (Repealed by 41-801 on March 17, 2008)

OSC Rule



RULE 41-501 GENERAL PROSPECTUS REQUIREMENTS,
COMPANION POLICY TO GENERAL
PROSPECTUS REQUIREMENTS 41-501CP
AND FORM 41-501F1 INFORMATION REQUIRED IN A PROSPECTUS

TABLE OF CONCORDANCE WITH OSC POLICY NOS 5.1 AND 5.7,
UNIFORM ACT POLICIES 2-01, 2-02, 2-03 AND 2-04AND
CERTAIN PROVISIONS OF PART III OF THE REGULATION
TOTHE SECURITIES ACT RSO 1990 c S5, AS AMENDED

On July 23, 1999, the Commission published for comment proposed changes to proposed Rule 41-501General Prospectus Requirements (the "proposed Rule"), Form 41-501F1 Information Required in aProspectus (the "Prospectus Form"), and Companion Policy 41-501CP General Prospectus Requirements (the"proposed Companion Policy").

As a result of the implementation of the proposed Rule, Prospectus Form and proposed Companion Policy,most of the provisions in Part III of the Regulation to the Securities Act (Ontario) concerning the form,content, certification, filing and receipting of preliminary prospectuses and prospectuses will no longer benecessary and the Commission proposes to revoke these provisions. This table shows how each of therelevant sections in the Regulation, Ontario Securities Commission Policy 5.1 ("OSC Policy 5.1"), OntarioSecurities Commission Policy 5.7 ("OSC Policy 5.7") and certain other existing instruments are to be treatedin the proposed Rule, Prospectus Form and proposed Companion Policy.

Item
EXISTING PROVISION
Treatment(1)
1. Part III, Regulation 1015, asamended, sections 33-66 and 79-82  
  Section 33 To be revoked (summary statements no longer used)
  Section 34 (1) Rule 41-501, s. 9.7(1)
  (2) To be revoked as covered in general exemption authority inRule 41-501, Part 11.
  (3) Rule 41-501, s. 9.7(2)
  (4) Form 41-501F1, Item 28.3(1), (2)
  (5) Form 41-501F1, Item 28.3(4)
  Section 35 Rule 41-501, s. 9.11(5)
  Section 36 Rule 41-501, s. 9.3
  Section 37 (1) To be revoked (definitions of "trustee", "trust indenture" and"underwriter" no longer required as sections 38 and 39 ofthe Regulation to be revoked)
  (2) To be revoked. New definition of these terms will beincluded in National Instrument 43-101 and 43-102 whichwill be the successor instruments to National Policy Nos.2.A and 2.B, respectively
  Section 38 (1) 1 Rule 41-501, s. 10.1(1)
  (1) 2 Rule 41-501, s. 10.1(2)
  (1) 3 To be revoked (the escrow requirements will be reformulatedin a new Rule, which will replace existing Policy 5.9)
  (1) 4 Rule 41-501, s. 10.1(3)
  (1) 5 Form 41-501F1, Item 1.9(4)
  (1) 6 Form 41-501F1, Item 1.7(3)
  (1) 7 Form 41-501F1, Item 19.5

60 day period extended to 90 days.
  (2)

 

 To be revoked
  Section 39 To be revoked
  Section 40 To be revoked (Form 41-501F1 will replace Form 12)
  Section 41 To be revoked (Form 41-501F1 will replace Form 13)
  Section 42 To be revoked (Form 41-501F1 will replace Form 14)
  Section 43 To be revoked (to be covered in Rule 54-501)
  Section 44 (1) To be included in Rule 41-502 - Prospectus Requirementsfor Mutual Funds
  (2) To be revoked (summary statements no longer used)
  Section 45 To be revoked (no longer useful as Form 41-501F1consolidates the three principal prospectus forms)
  Section 46 Paragraphs (a) and (b) revoked; paragraph (c) included inRule 41-501, s. 3.2(5) and Companion Policy 41-501CP s.1.3
  Section 47 Form 41-501F1 General Instruction 5
  Section 48 To be revoked (not required as forms do not create thesuggested inference)
  Section 49 (1) Rule 41-501 s. 3.2(1), Companion Policy 41-501CP, s. 1.2and Form 41-501F1 General Instruction 4
  (2) To be revoked
  (3) To be revoked
  (4) Rule 41-501, s. 3.2(2)
  (5) Rule 41-501, s. 3.2(3) and Form 41-501F1, Item 2
  (6) Rule 41-501, s. 3.2(4)
  Section 50 To be included in proposed National Instrument 41-101Prospectus Disclosure Requirements, s. 2.2 and Form41-501F, Item 1.2
  Section 51 Form 41-501F1, Item 1.1 and National Instrument 41-101,s. 2.1
  Section 52 (1) Rule 41-501 s. 1.2
  (2) Rule 41-501 s. 6.2(1)6 and 8.3
  Section 53 (1) Rule 41-501, s. 4.1(1) (five year requirement reduced tothree years) and s. 4.3
  (2) To be revoked
  (3) To be revoked
  (4) Rule 41-501, s. 4.5
  (5) Rule 41-501, s. 4.2
  (6) To be revoked
  Section 54 Included in Rule 41-502 Prospectus Requirements forMutual Funds
  Section 55 To be revoked.
  Section 56 To be revoked and replaced by Rule 41-501, Part 5
  Section 57 Rule 41-501, s. 6.1(2) and Companion Policy 41-501CP s.4.1
  Section 58 To be revoked.
  Section 59 Form 41-501F, Item 9

Requirement to provide asset coverage deleted.
  Section 60 (1) To be revoked. To be included in proposed NationalInstrument 52-101 Future Oriented Financial Information.
  (2) To be revoked. To be included in proposed NationalInstrument 52-101 Future Oriented Financial Information.
  (3) To be revoked. To be included in proposed NationalInstrument 52-101 Future Oriented Financial Information.
  Section 61 To be revoked and replaced by Rule 41-501 s. 6.1
  Section 62 To be revoked; guidance to issuer in Companion Policy41-501CP, s. 2.4(a)
  Section 63 To be revoked (see Part 11 of Rule 41-501).
  Section 64 Rule 41-501 s.6.3
  Section 65 (1) Rule 41-501, s. 6.2(1)
  (2) Rule 41-501, s. 6.2(1)
  (3) Rule 41-501, s. 9.9(1) and (2)
  Section 66 (1) Rule 41-501, s. 9.9(2)
  (2) To be revoked.
  Section 79 To be revoked. The escrow requirements are to bereformulated in a separate rule.
  Section 80 (1) To be revoked
  (2) To be revoked
  Section 81 (1) To be revoked. Replaced by s. 1.1 of Rule 41-501.
  (2) To be revoked. Authority to permit variations covered ingeneral exempting authority in Rule 41-501, Part 11.
  Section 82 (1) To be revoked
  (2) To be revoked
2. Uniform Act Policy 2-01-"Undertakings" -- Extra-provincialCompanies To be revoked in Ontario(see introductory note to UAP 2-01)
3. Uniform Act Policy 2-02-Prospectuses -- Annual Re-filings To be revoked in Ontario (this policy is superseded by s 62of the Act)
4. OSC Policy 5.1 - Prospectuses--General Guidelines  
  Section 1 - Purpose of Issue -Experience of Officers and Directors -Other Resources Companion Policy 41-501CP, s. 1.1
  Section 2 - Good Standing of"Experts" To be revoked
  Section 3 - "Best Efforts" Offering -Minimum Subscriptions - Depository -Length of Offering Form 41-501F1, Items 19.3 and 19.5

 

60 day period extended to 90
  Section 4 - Feasibility depending onRegistration or Licensing Form 41-501F1, Item 19.6
  Section 5 - Disclosure of MarketStabilization during Distribution Form 41-501F1, Item 1.7(2) and 19.4
  Section 6 - Right to Redemption orRepurchase - Disclosure Form 41-501F1, Item 10.1
  Section 7 - Representations as toListing on a Stock Exchange Paragraph (b) included in Form 41-501F1, Item 19.9
  Section 8 - Natural Resource Issuers -Property in "Cautioned" Townships To be revoked
  Section 9 - Natural Resource Issuers -Escrowed Shares To be revoked

 
  Section 10 - Green Shoe Options,Warrants and Convertible Securities Part A - Moved to proposed Rule 48-502 UnderwritersOptions and new disclosure requirement added in Item 1.4(2)of Form 41-501F

Part B disclosure requirement added in Form 41-501F1, Item12.1 and explanation in Companion Policy 41-501CP, s. 5.9
  Section 11 - Extension of 75 dayperiod for Issuance of Final Receipt Companion Policy 41-501CP, s. 6.1
  Section 12 - Certificate of Underwriterin Prospectus Companion Policy 41-501CP, s. 1.5
  Section 13 - Apartment Conversions To be revoked
  Section 14 - Delivery of CommentLetters To be revoked
  Section 15 - Documents andInformation to be Filed Rule 41-501, ss. 9.2 - 9.10

 

Requirement to file certified copies of directors resolutionsand certificate under s. 80 of the Regulations have beeneliminated. Only certain material contracts required to befiled
  Section 16 - Project Financings Companion Policy 41-501CP s. 6.2
  Section 17 - Sale by a ConstrainedShare Corporation of Shares held byNon-Canadians Form 41-501F1, Item 10.7
  Section 18 - Offerings in Which TrustCompanies are Involved To be revoked
  Section 19 - Deposit-Taking Issuers Replaced by MD&A requirement
  Section 20 - Extended DistributionPeriod for Real Estate-based Securities To be revoked
  Section 21 - Dilution To be revoked
  Section 22 - Offerings of ApprovedRating Debt Securities and ApprovedRating Preferred Shares at Non-FixedPrices Form 41-501F1, Item 1.5

 

Rule 41-501, s. 7.1
  Section 23 - Acquisitions Rule 41-501, Part 5, and Companion Policy 41-501CP, Part3
  Section 24 - Prospectus Disclosure inInformation Circulars; Amalgamation,Arrangements, Mergers andReorganizations To be included in proposed Rule 54-501
  Section 25 - International Offerings Paragraph (a) in 41-501, s. 9.10; paragraphs (b), (c), (d) and(e) to be revoked and paragraph (d) included as new Item1.10 of Form 41-501F1. Paragraph (e) not required sinceInternational Markets Branch no longer exists.
  Section 26 - Trading by Issuers,Selling Security Holders,Underwriters, Dealers and TheirAffiliates and Joint Actors During aDistribution by Prospectus of TSE-listed Securities To be included in proposed Rule 48-501 Market Stabilization
  Appendix A - Issuer Form ofSubmission to Jurisdiction andAppointment of Agent for Service ofProcess Form 41-501F3
  Appendix B - Non Issuer Form ofSubmission to Jurisdiction andAppointment of Agent for Service ofProcess Form 41-501F4
5. OSC Policy 5.7 - PreliminaryProspectuses -- Preparation, Filingand Frequently OccurringDeficiencies  
A Prospectus Preparation and Filing

 

Section 1 - General (a), (c)

 Rule 41-501, s. 9.2 Requirement to provide asset coveragedeleted.
  Section 1 - General (b) To be revoked.
  Section 1a - General -- Mutual Funds To be included in proposed Rule 41-502 ProspectusRequirements for Mutual Funds
  Section 1b - Freedom of Informationand Protection of Privacy Act, 1987 Rule 41-501, s. 9.2, S. 1 and 2
  Section 2 - Other RegulatoryAuthorities To be revoked
  Section 3 - Secondary Offerings To be revoked
  Section 4 - Opinions Form 41-501F1, Item 28.1 (paragraph 4(b) to be revoked)
  Section 5 - Layman's Terms Companion Policy 41-501CP s. 1.2
  Section 6 - Certificates Rule 41-501, s. 8.2
  Section 7 - Final Material Rule 41-501, s. 4.3 and 5.4
  Section 8 - Directors' Resolutions To be revoked
  Section 9 - Project Financing andLimited Partnership Offering To be revoked
  Section 10 - Marked-up Copies Companion Policy 41-501CP, s. 5.4
B Frequently Occurring Deficiencies

 

Section 1 - Concurrent Applications

 To be revoked
  Section 2 - Face Page Disclosure Item 1 of Form 41-501F1 - Information Required in aProspectus
  - (a) No longer required on face page
  - (b) Form 41-501F1, Item 1.1
  - (c) National Instrument 52-102 Use of Currencies
  - (d) No longer required on face page
  - (e) Form 41-501F1, Item 1.9(4)
  - (f) Form 41-501F1, Item 1.7(3)
  - (g) Form 41-501F1, Item 1.4(4)
  - (h) Form 41-501F1, Item 1.8
  - (i) No longer require face page disclosure
  - (j) Not applicable
  - (k) No longer require face page disclosure

 

See Form 41-501F1, Items 19.8 and 19.9
  - (l) Form 41-501F1, Item 1.3
  Section 3 - Certificates To be revoked
  Section 4 - Final Material To be revoked
  Section 5 - Applicable Policies To be revoked
  Schedule "A" - Collection of PersonalInformation Pursuant to the Freedomof Information and Protection ofPrivacy Act, 1987 Form 41-501F2 published May 2, 1997 (1997 20 OSCB(supp))
6. OSC Policy Notice #6 To be revoked
7. Blanket Ruling 36 To be revoked
8. OSCN - Disclosure of Investigations(1990), 13 OSCB 598

 

 Companion Policy 41-501CP, s. 5.5
9. OSCN-Prospectus Disclosure ofRatings (A30-9) To be revoked (mandatory disclosure of ratings nowprovided for in Form 41-501F1, Item 10.4)
10. OSCN - Interpretation Note 2 (1983)

OSCB 4536

 Companion Policy 41-501CP, s. 1.4
11. UAP 2-03 - Prospectuses andAmendments -- Certification (Section52) Supporting Documentation To be revoked in Ontario
12. UAP 2-04 - Consent of Solicitors --Disclosure of Interest Companion Policy 41-501CP, s. 5.1
13. OSCN - Auditors' Consent andComfort Letters (A30-6) To be revoked
14. OSCN - OSC Notice re Issuance ofreceipts on a specific day 02/04/94 Rule 41-701
15. Filing of Prospectuses with theCommission (A30-281) To be revoked

1. 1. A statement that an existing provision is "to be revoked" means that it will be revoked and notreformulated in a new instrument. All other provisions are to be included in the new instrumentindicated.