New PODSA Ownership Requirements: Reporting Changes of Ownership Mar. 29, 2018 New Pharmacy Ownership Requirements

New PODSA Ownership Requirements: Reporting Changes of Ownership 

Like all businesses, licenced pharmacies are subject to traditional corporate transactions, such as mergers and acquisitions that can, at times, result in a change of ownership.

Under the new Pharmacy Operations and Drug Scheduling Act (PODSA) Bylaws, changes to the ownership of a pharmacy, much like all changes to information provided during an initial licensure, must be reported to the College.

Starting April 1, 2018, authorized representatives will be required to submit change of ownership applications for any changes to the direct or indirect owners of a pharmacy.

Direct and Indirect Owners

Direct owners, indirect owners and authorized representatives are determined based on a pharmacy’s ownership structure. See New PODSA Ownership Requirements: Ownership Structure and Requirements for Licensure, and Who are the Authorized Representatives for Your Pharmacy? to learn more. 
 

Notification Period 

The authorized representative must notify the College as soon as they become aware of upcoming changes to ensure there is sufficient time to complete the Change Application. Many changes have a specific time period by which the Registrar needs to be notified and require additional steps to be completed between the time the application form is submitted and the effective date of change. 
Notification to the College is provided by submitting the appropriate change application form.

Change of Direct Owner 

A change of direct owner usually occurs during the sale of a licenced pharmacy, as well as during mergers and acquisitions associated with a pharmacy. 
Under the new ownership requirements, the process for changing a direct owner is very similar to completing a new Pharmacy Licence Application. This is because the College will need to assess whether the new direct owner is eligible to hold a pharmacy licence.

In addition, under the Pharmacy Operations and Drug Scheduling Act, when the direct owner of the pharmacy changes, the licence is cancelled, and a new licence is issued through the Application for Change of Direct Owner. 

Change of Direct Owner Submission Requirements

The authorized representative must submit:

At least 30 days before the effective date of change

• Application for Change of Direct Owner (and required corporate documentation if owned by a corporation) 
• Signed copy of the attestation PODSA form from each applicable direct/indirect owner

At least 7 days before effective date of change

• Criminal Record History from each new direct/indirect owner
• An updated business licence of the pharmacy issued to the new direct owner

Change of Indirect Owner 

Changes to a pharmacy’s indirect owners can involve either the addition of new ones or the removal of existing ones. 

For corporations, indirect owners include a corporation’s directors and officers (and its shareholders if the corporation is non-publicly traded). If a shareholder is a non-publicly traded corporation incorporated in BC (also known as a parent or holding company), then its directors, officers and shareholders will also be considered indirect owners.

Under the new ownership requirements, all new indirect owners will be required to submit their Proof of Eligibility before the effective date of change. However, prior to your first pharmacy renewal under the new pharmacy ownership requirements, only changes of directors will need to be reported to the College by the authorized representative.

Change of Indirect Owner Submission Requirements

The authorized representative must submit:

For changes prior to first pharmacy licence renewal under the new requirements 

At least 7 days before the effective date of change

• Application for Change of Indirect Owner(s) for directors only (paper form) and upload it in the pharmacy portal on eServices

• Notice of Change of Directors filed to the BC Registry Services
• If the change involves adding a new director, the new director will receive instructions to complete his/her Proof of Eligibility through his/her eServices account 

For changes following first pharmacy licence renewal under the new requirements 

At least 7 days before effective date of change 

• Application for Change of Indirect Owner(s) for any directors, officers (and shareholders where applicable) (eServices)
• Required documents (as applicable):
  • Change of Director: Notice of Change of Directors filed to the BC Registry Services*
  • Change of Shareholder: Updated certified true copy of the Central Securities Register*
• If the change involves adding a new director, the new director will receive instructions to complete his/her Proof of Eligibility through his/her eServices account 

New Pharmacy Ownership Requirements ReadLinks Series

Watch for additional New Pharmacy Ownership Requirements articles in the months ahead on ReadLinks. These articles feature important new requirements for pharmacy licensure and renewals to help pharmacies prepare to meet the new requirements.

Related FAQs

• Can I submit other changes to my pharmacy(ies) along with my Application for Change of Direct Owner? 
• Do I need to provide a pharmacy diagram with my Application for Change of Direct Owner? 
• How do I complete the Change of Direct Owner Application form if I am purchasing all the pharmacies under the current owner?