February 21, 2019
Introduction
On May 14, 2015, the securities regulatory authorities of British Columbia, Saskatchewan, Manitoba, Québec, New Brunswick and Nova Scotia, (the participating jurisdictions) adopted substantially harmonized registration and prospectus exemptions (together, the start-up crowdfunding exemptions) that allow start-ups and early stage businesses to raise capital in these jurisdictions. The participating jurisdictions implemented the start-up crowdfunding exemptions by way of local blanket orders, as amended from time to time[1] (the start-up crowdfunding exemptions orders). The start-up crowdfunding exemptions orders expire on May 13, 2020.
Staff (we) of the Canadian Securities Administrators are developing a national instrument with the same key features as the start-up crowdfunding exemption orders, with targeted amendments to improve harmonization and the effectiveness of crowdfunding as a capital raising tool for start-ups and early stage businesses. Subject to obtaining the necessary approvals, we will publish for comment a proposed national instrument that will replace the start-up crowdfunding exemption orders. We anticipate that the proposed national instrument will not be implemented by May 13, 2020.
Extension of the start-up exemption orders
In order to accommodate the timing of the proposed national instrument, staff of the participating jurisdictions expect that the start-up crowdfunding exemptions orders will be amended to remain available for issuers and funding portals until the proposed national instrument is adopted.
Questions
Please refer your questions to any of the following:
| Elliott Mak Senior Legal Counsel, Corporate Finance British Columbia Securities Commission 604 899-6501
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James Leong Senior Legal Counsel, Capital Markets Regulation British Columbia Securities Commission 604 899-6681
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| Denise Weeres Director, New Economy Alberta Securities Commission 403 297-2930
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Gillian Findlay Legal Counsel, Corporate Finance Alberta Securities Commission 403 297-3302
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| Heather Currie
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| Tony Herdzik Deputy Director, Corporate Finance Financial and Consumer Affairs Authority of Saskatchewan 306 787-5899
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Mikale White Legal Counsel Financial and Consumer Affairs Authority of Saskatchewan 306 798-3381
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| Chris Besko Director, General Counsel The Manitoba Securities Commission 204 945-2561
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| Erin O’Donovan Senior Legal Counsel, Corporate Finance Ontario Securities Commission 416 204-8973
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Louise Harris Accountant, Compliance and Registrant Regulation Ontario Securities Commission 416 593-2359 |
| Marc-Olivier St-Jacques Senior Policy Advisor Autorité des marchés financiers 514 395-0337, extension 4424 Toll-free: 1 877 525-0337 marco.st-jacques@lautorite.qc.ca
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Gabriel Perras Analyst Autorité des marchés financiers 514 395-0337, extension 4388 Toll-free: 1 877 525-0337 gabriel.perras@lautorite.qc.ca
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| Jason Alcorn Senior Legal Counsel Financial and Consumer Services Commission of New Brunswick 506 643-7857
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Alicia Love Senior Legal Counsel Financial and Consumer Services Commission of New Brunswick 506 658-2648
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| Abel Lazarus Director, Corporate Finance Nova Scotia Securities Commission 902 424-6859
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Peter Lamey Legal Analyst, Corporate Finance Nova Scotia Securities Commission 902 424-7630
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[1] For example, please refer to Multilateral CSA Notice 45-317 Amendments to Start-up Crowdfunding Registration and Prospectus Exemptions and Multilateral CSA Notice 45-319 Amendments to Start-up Crowdfunding Registration and Prospectus Exemptions.