Part 2 — Designated Office Holders Interpretation
25.24 Restriction on holdings
(a) "publicly-traded securities" means
(i) securities of a corporation that are listed or posted for
trading on a recognized stock exchange, or
(ii) securities of a corporation that has more than 15
shareholders and any of whose issued securities were
part of a distribution to the public;
(b) "securities" means
(i) shares of any class or series of shares of a corporation, or
(ii) bonds, debentures, not es or other evidence of
indebtedness or guarantees of a corporation, whether
secured or unsecured,
but does not include shares or units in a mutual fund.
(2) A designated office holder breaches this Part if the designated
office holder, after the expiration of the relevant period referred to
in subsection (9), owns or has a beneficial interest in
publicly-traded securities.
(3) Repealed 2017 c20 s5.
(4) Subsection (2) does not apply if
(a) the publicly-traded securities are held in a blind trust
approved under subsection (6) or in an investment
arrangement approved under subsection (7),
(b) prior to the expiration of the relevant period referred to in
subsection (9), the designated office holder applies to the
Ethics Commissioner for approval to retain ownership of or
a beneficial interest in the publicly-traded securities and
either obtains the Ethics Commissioner's approval or, if the
approval is refused, takes any steps that the Ethics
Commissioner directs with respect to the disposition of the
ownership or beneficial interest, or
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(c) after the expiration of the relevant period referred to in
subsection (9), the designated office holder acquires
ownership of or a beneficial interest in publicly-traded
securities with the prior approval of the Ethics
Commissioner.
(5) The Ethics Commissioner may give an approval
(a) under subsection (4)(b) or (c) if the Ethics Commissioner is
of the opinion that the publicly-traded securities are
securities of a corporation the interests of which are not
likely to be affected by decisions of the Government, or
(b) under subsection (4)(b) if t he Ethics Commissioner is of the
opinion that the designated office holder will sustain a
financial loss if the publicly-traded securities are disposed of
and the public interest does not require disposition of the
publicly-traded securities by the designated office holder.
(6) The Ethics Commissioner may approve the retention of
publicly-traded securities to be held in a blind trust if the blind trust
will meet the following criteria:
(a) the designated office holder is the settlor of the trust;
(b) the trustee is approved as trustee by the Ethics
Commissioner after the Ethics Commissioner is satisfied
that there is no relationship between the designated office
holder and the trustee that would affect or would appear to
affect the discharge of the trustee's duties;
(c) the terms of the trust, i n the opinion of the Ethics
Commissioner,
(i) give the trustee sole pow er over investment decisions,
(ii) preclude the designated office holder from having any
knowledge of the specific investments in the trust at any
time after a deposit in the trust,
(iii) require that the designate d office holder may deposit in
the trust only securities verified by the Ethics
Commissioner as being publicly-traded securities, shares
or units in a mutual fund, futures and forward contracts
or exchange contracts, and
(iv) require the trustee to invest only in publicly-traded
securities, in shares or units in a mutual fund, in futures
and forward contracts, in exchange contracts or in
certificates of deposit, deposit receipts or other evidence
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of indebtedness given by a bank, trust company, credit
union or treasury branch in consideration of a deposit
made with the bank, trust company, credit union or
treasury branch.
(7) The Ethics Commissioner may approve the retention of
publicly-traded securities to be held in an investment arrangement
if the investment arrangement will meet the following criteria:
(a) it gives a person other than the designated office holder sole
power over investment decisions,
(b) it precludes the designated office holder from having any
knowledge of the specific investments at any time after a
deposit to the investment arrangement, and
(c) it ensures there will be no relationship between the
designated office holder and the person referred to in clause
(a) that would affect or would appear to affect that person's
investment decisions.
(8) An approval or direction given by the Ethics Commissioner
under subsection (4) may be given subject to any conditions
determined by the Ethics Commissioner.
(9) For the purposes of subsections (2) and (4),
(a) with respect to a designate d office holder, the relevant
period is
(i) in the case of a person who becomes a designated office
holder after the coming into force of this section, 60 days
after becoming a designated office holder or any longer
period that the Ethics Commissioner directs, or
(ii) in the case of a person who is a designated office holder
when this section comes into force, 60 days after the
coming into force of this section or any longer period
that the Ethics Commissioner directs,
a n d
(b) with respect to a designated office holder who acquires
ownership of or a beneficial interest in publicly-traded
securities by gift or inheritance, the relevant period is 60
days after receiving the gift or inheritance or any longer
period that the Ethics Commissioner directs.
2014 c9 s3
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