BCSC revises 51-509 Rule for U.S. OTC issuers – Part 1

The British Columbia Securities Commission (BCSC) is proposing new rule changes along with the related companion policy’s and forms for issuers quoted in the U.S. over-the-counter markets (OTCBB) and pink sheets. These changes can be located at:

B.C. Instrument (BCI) 51-509 Issuers Quoted in the U.S. Over-the-Counter Markets.

Under the newly proposed rules the BCSC will have better legal tools to improve disclosure of B.C.-connected OTC issuers. But here is the big news:

The proposed rule also discourages the manufacture and sale of shell companies that may be used for abusive purposes.

We are still trying to get our arms around the new revised rule change along with its affect on Buyers and Sellers of OTCBB shells. This Blog series will share with our readers what we know so far. Keep in mind the final version of the rule has not yet been set in stone so there may be further revisions and updates before September 15, 2008 when the final revised rule 51-509 goes into effect.