4 - Distribution Requirements

 

 

May 21, 2015

 

The Canadian Securities Administrators (CSA or we) have implemented National Instrument 45-106 Prospectus Exemptions (NI 45-106) and National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Exemptions (NI 31-103) in order to consolidate and harmonize most of the prospectus and registration exemptions available under Canadian securities laws.  However, there remain a limited number of local exemptions in each jurisdiction.

 

The CSA are replacing a prior notice issued in September 2005 and amended in November 2009 with this notice listing the prospectus and registration exemptions in each jurisdiction that are not included in NI 45-106 or NI 31-103.

 

These exemptions are listed in the Appendix by jurisdiction and apply only in that jurisdiction. Although we have attempted to consolidate a list of all remaining exemptions by local jurisdiction, we encourage persons relying on a local exemption to consult the securities legislation of the jurisdiction.

 

The list of exemptions in the Appendix is up-to-date as of May 21, 2015.

 

Questions

Questions about any of the local exemptions listed in the Appendix may be referred to the contact(s) for that local jurisdiction listed below:

 

 

British Columbia Leslie Rose Senior Legal Counsel, Corporate Finance British Columbia Securities Commission (604) 899-6654 lrose@bcsc.bc.ca	Elliott Mak Senior Legal Counsel, Corporate Finance British Columbia Securities Commission (604) 899-6501 emak@bcsc.bc.ca
Alberta Sophia Mapara Legal Counsel Alberta Securities Commission (403) 297-2520 Sophia.mapara@asc.ca	Tracy Clark Senior Legal Counsel Alberta Securities Commission (403) 355-4424 Tracy.Clark@asc.ca
Saskatchewan Sonne Udemgba Deputy Director, Legal Securities Division Financial and Consumer Affairs Authority of Saskatchewan (306) 787-5879 Sonne.udemgba@gov.sk.ca
Manitoba Chris Besko Director, General Counsel The Manitoba Securities Commission (204) 945-2561 Chris.besko@gov.mb.ca
Ontario Jo-Anne Matear Manager, Corporate Finance Ontario Securities Commission (416) 593-2323 jmatear@osc.gov.on.ca	Elizabeth Topp Senior Legal Counsel, Corporate Finance Ontario Securities Commission (416) 593-2377 etopp@osc.gov.on.ca
Denise Morris Legal Counsel, Compliance and   Registrant Regulation Ontario Securities Commission (416) 595-8785 dmorris@osc.gov.on.ca
Québec Sylvie Lalonde Senior Policy Advisor Autorité des marchés financiers (514) 395-0337, ext. 4364 sylvie.lalonde@lautorite.qc.ca	Alexandra Lee Senior Policy Advisor Autorité des marchés financiers (514) 395-0337 ext. 4465 alexandra.lee@lautorite.qc.ca
Nova Scotia Jane Anderson Director, Policy and Market Regulation Nova Scotia Securities Commission (902) 424-0179 jane.anderson@novascotia.ca
New Brunswick Ella-Jane Loomis Legal Counsel, Securities Division Financial and Consumer Services Commission (506) 658-2606 ella-jane.loomis@fcnb.ca
Prince Edward Island Steve Dowling General Counsel Consumer, Labour and Financial Services Division Government of Prince Edward Island (902) 368-4551 sddowling@gov.pe.ca
Newfoundland & Labrador Don Boyles Program & Policy Development Securities Commission of Newfoundland and Labrador Government of Newfoundland & Labrador (709) 729-4501 dboyles@gov.nl.ca
Yukon Rhonda Horte Deputy Superintendent of Securities Dept of Community Services Government of Yukon (867) 667-5466 Rhonda.Horte@gov.yk.ca
Northwest Territories Gary MacDougall Superintendent of Securities Office of the Superintendent of Securities Government of the Northwest Territories (867) 873-7490       gary_macdougall@gov.nt.ca

 

Nunavut Shamus Armstrong Deputy Director, Legal Registries Department of Justice Government of Nunavut (867) 975-6598 sarmstrong@gov.nu.ca

 

Appendix

 

 

Local Exemptions - Alberta

 

Alberta Securities Commission Rules

ASC Rule 45-502 Trade with RESP

 

ASC Rule 45-509 Offering Memorandum for Real Estate Securities

 

ASC Rule 45-511 Local Prospectus Exemptions and Related Requirements

 

ASC Rule 45-513 Prospectus Exemptions for Distributions to Existing Security Holders

 

ASC Rule 72-501 Distributions to Purchasers Outside Alberta

 

ASC Rule 91-504 Strip Bonds

 

Blanket Orders

ASC Blanket Order 2005/10/849 Registration and Prospectus Exemption for Certain Capital Accumulation Plans

 

ASC Blanket Order 31-505 Registration Exemption for Trades in Connection with Certain Prospectus-Exempt Distributions

 

ASC Blanket Order 31-530 Trades and Advice for US-Resident Clients: Dealer and Adviser Registration Exemptions

 

ASC Blanket Order 45-515 Exemption from Certain Financial Statement Requirements of  Form 45-106F2 Offering Memorandum for Non-Qualifying Issuers

 

ASC Blanket Order 91-506  Over-the-Counter Trades in Derivatives

 

Local Exemptions - British Columbia

 

Commission Rules

BC Instrument 45-501 Mortgages

 

Blanket Orders

BC Instrument 32-503 Registration Exemption for Approved Persons of the Mutual Funds Dealers Association of Canada

 

BC Instrument 32-513 Registration Exemption for Trades in Connection with Certain Prospectus Exempt Distributions

 

BC Instrument 32-517 Exemption from Dealer Registration Requirement for Trades in Securities of Mortgage Investment Entities

 

BC Instrument 32-522 Exemption from the registration requirement for trades in short-term debt instruments

 

BC Instrument 32-525 Exemption from the dealer registration requirement and the adviser registration requirement in respect of trades and advice for U.S. resident clients

 

BC Instrument 45-504 Trades to trust companies, insurers, and portfolio managers outside British Columbia

 

BC Instrument 45-512 Real Estate Securities

 

BC Instrument 45-514 The Employee Investment Act

 

BC Instrument 45-524 Registration and Prospectus Exemption for Certain Capital Accumulation Plans

 

BC Instrument 45-528 Trades under a realization on collateral given for a debt

 

BC Instrument 45-529 Bonus or Finder’s Fee

 

BC Instrument 45-530 Exemptions for securities issued by a cooperative association

 

BC Instrument 45-531 Exemptions for shares or deposits of a credit union

 

BC Instrument 45-534 Exemption from prospectus requirement for certain trades to existing security holders

 

BC Instrument 45-535 Start-up Crowdfunding Registration and Prospectus Exemptions

 

BC Instrument 72-502 Trades in Securities of U.S. Registered Issuers

 

BC Instrument 72-503 Distribution of Securities outside British Columbia

 

BC Instrument 72-504 Distribution of Eurobonds

 

BC Instrument 91-501 Over-The-Counter Derivatives

 

BC Instrument 91-502 Short Term Foreign Exchange Transactions

 

BC Instrument 91-503 Contracts Providing for Physical Delivery of Commodities

 

BC Instrument 91-504 Government Strip Bonds

 

BC Instrument 91-505 Prospectus exemption for put and call options

 

Local Exemptions - Manitoba

 

The Securities Act (Manitoba)

Section 19(1)(c) and 58 (1)(a) – Exempt Purchasers

 

Sections 19(2)(g) and 58(3)(a) – Securities to which The Cooperatives Act apply

 

Sections 19(2)(h) and 58(3)(a)– Securities to which The Credit Unions and Caisses Populaires Act apply

 

Securities Regulation (Manitoba)

Sections 91(a) and (b) of The Securities Regulation M.R. 491/88R

 

Blanket Rulings (Manitoba)

Local Policy 3.17 – Strip Bonds

 

Blanket Order 45-501 Exemption  from prospectus requirement for certain trades to existing security holders

 

Blanket Order 45-502 Start-up Crowdfunding Prospectus and Registration Exemption

 

Local Exemptions – New Brunswick

 

Rules

Local Rule 45-501 Prospectus and Registration Exemptions

 

Local Rule 45-802 Implementing National Instrument 45-106 Prospectus and Registration Exemptions

 

Local Rule 72-501 Distribution of Securities to Persons Outside New Brunswick

 

Local Rule 81-502 Registration and Prospectus Exemption for Certain Capital Accumulation Plans

 

Local Rule 91-501 Derivatives

 

Blanket Orders

Blanket Order 31-520 Exemption from the Requirement in NI 31-103 to Register for International Dealers

 

Blanket Order 31-521 Exemption from the Requirement in NI 31-103 to Register for International Advisers

 

Blanket Order 32-503 Exemption From The Dealer Registration Requirement And The Adviser Registration Requirement In Respect Of Trades And Advice For U.S. Resident Clients

Blanket Order 41-502 in the matter of Capital Pool Companies

 

Blanket Order 44-501 In the matter of the Lapse Date for Shelf Prospectuses Under National Instrument 44-102 Shelf Distributions

 

Blanket Order 44-502 In the matter of an Exemption for Solicitations of Expressions of Interest

 

Blanket Order 45-504 Exemptions From Certain Financial Statement Requirements Of Form 45-106F2 Offering Memorandum For Non-Qualifying Issuers

 

Blanket Order 45-505 Prospectus Exemption for Distribution to Existing Security Holders

 

Blanket Order 45-506 Start-Up Crowdfunding Registration and Prospectus Exemptions

 

Blanket Order 45-507 Exemptions from certain financial statement requirements of the offering memorandum

 

 

Local Exemptions – Newfoundland and Labrador

 

Securities Act (Newfoundland and Labrador)

Section 35 (Exemption of advisers)

 

Section 36 (Exemption of trades)

 

Local Exemptions – Northwest Territories

 

Securities Act (Northwest Territories)

Section 2 (Various exemptions from registration requirement)

 

Blanket Orders

Blanket Order No. 1 – Section 2 (Secondary Market Trading)

 

Blanket Order No. 1 – Subsection 3(a) (Bona Fide Debts of Non-control Persons)

 

Blanket Order No. 1 – Section 3(b) (Securities of a Cooperative)

 

Blanket Order No. 1 – Section 3(c) (Distributions commenced in reliance on Blanket Order exemptions in effect prior to September 14, 2005)

 

Blanket Order No. 2 – Subsection 2(a) (Bona Fide Debts of Non-control Persons)

 

Blanket Order No. 2 – Section 2(b) (Securities of a Cooperative)

 

Blanket Order No. 2 – Section 2(c) (Trades commenced in reliance on Blanket Order exemptions in effect prior to September 14, 2005)

 

Local Exemptions - Nova Scotia

 

Securities Act (Nova Scotia)

Sections 41(1) (ama) and (amb) (Registration exemption for securities of a cooperative)

 

Section 41(2)(i) (Registration exemption for shares of a credit union within the meaning of the Credit Union Act)

 

Section 77(1)(ah) (Prospectus exemption for securities of a cooperative)

 

Section 77(7C) (Prospectus exemption for first and subsequent trades of securities of a cooperative by a member of a cooperative)

 

Section 78(1)(a) as it relates to section 41(2)(i) (Prospectus exemption for shares of a credit union within the meaning of the Credit Union Act)

 

Rules

NSSC Rule 35-101 Conditional Exemption from Registration for United States Broker-Dealers and Agents

 

Regulations

Section 3 of the Community Economic – Development Corporations Regulations – N.S. Reg. 168/2011 (Prospectus exemption for shares of a community economic-development corporation)

 

Blanket Orders

Blanket Order No. 3 Zero Coupon Strip Bonds

 

Blanket Order No. 15 Trading in Recognized Options Cleared Through Recognized Clearing Organizations

 

Blanket Order No. 16 Trading in Commodity Futures Contracts and Commodity Futures Options

 

Blanket Order No. 24 Certain Certificates for Government Securities

 

 

Blanket Order No. 31-527 as varied by Blanket Order No. 31-531 Registration Exemption for Trades in Short-Term Debt Instruments

 

Blanket Order No. 32A Registration and Prospectus Exemptions for Real Return Bond Strip Bonds

 

Blanket Order 32-502 Exemption from the Dealer Registration and the Advisor Registration Requirement in respect of Trades and Advice for US Resident Clients

 

Blanket Order No. 47 Distribution of Mutual Funds Established for Employees of a Company and Its Affiliates

 

Blanket Order No. 45-507 A Registration and Prospectus Exemption for Certain Capital Accumulation Plans

 

Blanket Order No. 45-509 Trades in Warrants to Acquire Certain Debt Securities

 

Blanket Order No. 45-524 Start-up Crowdfunding Registration & Prospectus Exemptions

 

Blanket Order No. 45-525 Prospectus Exemption For Certain Trades To Existing Security Holders

 

Local Exemptions – Nunavut

 

Securities Act (Nunavut)

Section 2 (Various exemptions from registration requirement)

 

Blanket Orders

Blanket Order No. 1 – Section 2 (Secondary Market Trading)

 

Blanket Order No. 1 – Subsection 3(a) (Bona Fide Debts of Non-control Persons)

 

Blanket Order No. 1 – Section 3(b) (Securities of a Cooperative)

 

Blanket Order No. 1 – Section 3(c) (Distributions commenced in reliance on Blanket Order exemptions in effect prior to September 14, 2005)

 

Blanket Order No. 3 – Subsection 2(a) (Bona Fide Debts of Non-control Persons)

 

Blanket Order No. 3 – Section 2(b) (Securities of a Cooperative)

 

Blanket Order No. 3 – Section 2(c) (Trades commenced in reliance on Blanket Order exemptions in effect prior to September 14, 2005)

 

Local Exemptions - Ontario

 

Securities Act (Ontario)

Section 34 (Exemption from registration requirements, advisers)

Section 35 (Exemption from registration requirements, dealers)

Section 35.1 (Exemption from registration requirement, financial institutions)

Section 73 (Exemption from prospectus requirement –debt securities of governments in Canada)

 

Section 73.1 (Exemption from prospectus requirement – securities of financial institutions)

 

Section 73.2 (Exemption from prospectus requirement – where other legislation applies)

 

Section 73.3 (Exemption from prospectus requirement – accredited investor)

 

Section 73.4 (Exemption from prospectus requirement – private issuer)

 

Section 73.5 (Exemption from prospectus requirement – government incentive securities)

 

Regulations

Ontario Regulation 85/05 Exemptions respecting the Ontario Financing Authority

 

Rules

Ontario Securities Commission Rule 32-501 Direct Purchase Plans

 

Ontario Securities Commission Rule 35-101 Conditional Exemption from Registration for United States Broker-Dealers and Agents

 

Ontario Securities Commission Rule 35-502 Non Resident Advisers

 

Ontario Securities Commission Rule 35-503 Trades by Certain Members of The Toronto Stock Exchange

 

Ontario Securities Commission Rule 45-501 Ontario Prospectus and Registration Exemptions

 

Ontario Securities Commission Rule 91-501 Strip Bonds

 

Ontario Securities Commission Rule 91-502 Trades in Recognized Options – Rule Under the Securities Act

 

Ontario Securities Commission Rule 91-503 Trades in Commodity Futures Contracts and Commodity Futures Options Entered into on Commodity Futures Exchanges Situate Outside of Ontario – Rule Under the Securities Act

 

Local Exemptions – Prince Edward Island

 

Rules

Local Rule 45-501 - Exempt Distributions - Co-operative Associations

 

Local Rule 45-502 - Exempt Distributions - Credit Unions

 

Local Exemptions - Québec

 

Securities Act (Québec)

Section 3 (exemptions)

 

Section 41 (prospectus exemptions)

 

Securities Regulation (Québec)

Section 192 (registration exemptions)

 

Derivatives Act (Québec)

Section 7 (over-the-counter derivatives activities or transactions involving accredited counterparties only or in any other case specified by regulation).

 

Derivatives Regulation

Section 11.14 (registration exemption to the extent the person carries on business solely for an accredited counterparty and its activity involves a standardized derivative that is offered primarily outside Québec)

 

General exemption decisions

Decision 2000-C-0699: Registration exemption for dealers in respect of trading at a distance on NASDAQ

 

Decision 2009-PDG-0007 Registration exemption for dealer and adviser activities relative to derivatives with accredited investors

 

Decision 2015-PDG-0066: Exemption from the risk acknowledgement form requirement for activities relating to derivatives described in decision 2009-PDG-0007

 

Decision 2015-PDG-0077: Start-up Crowdfunding Prospectus and Registration Exemptions

 

Local Exemptions - Saskatchewan

 

General Rulings/Orders

General Ruling/Order 21-901 Market Facilitation Activities by Issuers in Their Own Securities

 

General Ruling/Order 31-904 Exemption from certain sections of National Instrument 31-103 in connection with transition and grandfathering matters

 

General Ruling/Order 31-907 Exemption from section 3.3 of National Instrument 31-103 Registration Requirements and Exemptions for representatives of scholarship plan dealers

 

General Ruling/Order 31-915 Exemption for mortgage investment entities from the requirement to register as investment fund managers and advisers

 

General Ruling/Order 31-916 Exemption from the Registration Requirement in NI 31-103 for International Dealers

 

General Ruling/Order 31-917 Exemption from the Registration Requirement in NI 31-103 for International Advisors

 

General Ruling/Order 31-932 Exemption from the Dealer Registration Requirement and the Adviser Registration Requirement in Respect of Trades and Advice for U.S. Resident Clients

 

General Ruling/Order 43-901 Trade Unions which Sponsor Labour Sponsored Venture Capital Corporations

 

General Ruling/Order 45-902 Labour-Sponsored Venture Capital Corporations

 

General Ruling/Order 45-912 Exemption for Co-operatives and Credit Unions

 

General Ruling/Order 45-913 Exemptions for Capital Accumulation Plans

 

General Ruling/Order 45-916 Exemption for Solicitations of Expressions of Interest

 

General Ruling/Order 45-918 Registration Exemption for Trades in Connection with Certain Prospectus Exempt Distributions

 

General Ruling/Order 45-919 Exemption from restriction on paying commissions and finder fees in offering memorandum exemption in National Instrument 45-106 Prospectus and Registration Exemptions

 

General Ruling/Order 45-925 Saskatchewan Equity Crowdfunding Exemption

 

General Ruling/Order 45-926 Exemption from prospectus requirement for certain trades to existing security holders

 

General Ruling/Order 45-927 Exemption from Registration Requirement in NI 31-103 for Trades in Short-Term Debt Instruments

 

General Ruling/Order 45-929 Start-up Crowdfunding Registration and Prospectus Exemptions

 

General Ruling/Order 72-901 Trades to Purchasers Outside of Saskatchewan

 

General Ruling/Order 91-904 Trades of Government Warrants

 

General Ruling/Order 91-905 Certain Interests in Government Securities

 

General Ruling/Order 91-906 Strip Bonds

 

General Ruling/Order 91-907 Over-the-Counter Derivatives

 

Local Exemptions – Yukon

 

Registrar’s Order 1999/38 Exemptions relating to Yukon Small Business Investment Tax Credit

 

Superintendent’s Order 2014/05 Exemption from Prospectus Requirement for Certain Trades to Existing Security Holders

 

Superintendent’s Order 2015/01 Exemption from the Registration Requirement in National Instrument 31-103 For Trades in Short Term Debt Instruments

 

Superintendent’s Order 2015/05  Exemption from the dealer registration requirement and the adviser registration requirement in respect of trades and advice for U.S. resident clients