Certain Canadian securities regulators to adopt start-up crowdfunding exemptions

MONTRÉAL, May 14, 2015 /CNW Telbec/ - The securities regulators of British Columbia, Saskatchewan, Manitoba, Québec, New Brunswick and Nova Scotia (the "participating jurisdictions") today announced they have implemented, or expect to implement, registration and prospectus exemptions that will allow start-ups and early‑stage companies to raise capital through crowdfunding in these jurisdictions, subject to certain conditions. 

These exemptions are further to the comments received as part of the consultation held in March 2014. Businesses wishing to rely on these exemptions will be able to conductcrowdfunding distributions in all participating jurisdictions.

"Crowdfunding is an attractive way for start-ups to raise capital. This regime addresses micro-capitalization needs and issues, which are more local in nature and sometimes industry-specific. Each member of the Canadian Securities Administrators was therefore able to consider the characteristics of its own market and choose whether to opt in to the exemption regime," explained Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. "Some participating jurisdictions continue to work on proposed Multilateral Instrument 45‑108 – Crowdfunding."

The start-up crowdfunding exemption is comprised of two exemptions: a prospectus exemption for start-ups seeking to raise capital and a dealer registration exemption for persons wishing to operate a funding portal.  The conditions associated with these exemptions are outlined in Multilateral CSA Notice 45-316 – Start-up Crowdfunding Registration and Prospectus Exemptions.  Registered dealers are able to operate funding portals that facilitate start-up crowdfunding distributions, subject to their registration obligations, including suitability.

A copy of the Multilateral CSA Notice 45-316 and exemptions are or will shortly be available on the participating jurisdictions' websites.

The CSA, the council of securities regulators of Canada's provinces and territories, coordinates and harmonizes regulation for the Canadian capital markets.

For more information:
Sylvain Théberge  Autorité des marchés financiers   514-940-2176	Richard Gilhooley British Columbia Securities Commission 604-899-6713
Kevan Hannah      Manitoba Securities Commission    204-945-1513	Tanya Wiltshire Nova Scotia Securities Commission 902-424-8586
Shannon McMillan   Financial and Consumer Affairs    Authority of Saskatchewan  306-798-4160	Andrew Nicholson Financial and Consumer Services Commission, New Brunswick 506-658-3021

SOURCE Autorité des marchés financiers

Sylvain Théberge Autorité des marchés financiers, 514 940-2176; Kevan Hannah, Commission des valeurs mobilières du Manitoba, 204 945-1513; Shannon McMillan, Financial and Consumer Affairs, Authority of Saskatchewan, 306 798-4160; Richard Gilhooley, British Columbia Securities Commission, 604 899-6713; Tanya Wiltshire, Nova Scotia Securities Commission, 902 424-8586; Andrew Nicholson, Commission des services financiers et des services aux consommateurs, Nouveau-Brunswick, 506 658-3021