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Canadian Securities Regulatory Monitor News and Insight

Tag Archives: crowdfunding

The State of Private Placements in Canada: OSC Publishes Update on Exempt Financings Market

Posted in Capital Markets, Exempt Market Dealers, OSC, SEC

The Ontario Securities Commission recently published a report summarizing capital raising activity by issuers in Ontario’s exempt market. Findings from the report include:

  • increased activity in 2016
  • significant participation from foreign issuers, including the U.S.
  • no reported use of Ontario’s new crowdfunding rule

In June 2017, the Ontario Securities Commission (the “OSC”) published OSC Staff Notice 45-715 2017 Ontario Exempt Market Report (the “Report”), which summarizes capital raising activity in Ontario’s exempt market (i.e. financings made other than by way of a prospectus).

The Report is a useful resource for businesses looking to raise capital from Canadian investors, including businesses … Continue Reading

Final crowdfunding rules to come into force in five provinces, including Ontario, in January 2016

Posted in AMF, Industry News, OSC

Introduction and Legislative History

After a lengthy review process beginning in 2013, the Ontario Securities Commission (the “OSC”) along with provincial securities regulators from Quebec, Manitoba, Nova Scotia and New Brunswick (with Ontario, the “Participating Jurisdictions”), have finalized amendments introducing a crowdfunding prospectus exemption and a regulatory framework for crowdfunding portals. This new crowdfunding regime (the “45-108 Regime”) will, subject to provincial Ministerial approvals, come into force on January 25, 2016 via Multilateral Instrument 45-108 (“MI 45-108”). For the OSC’s bulletin which includes Multilateral Instrument 45-108, click here. Saskatchewan, which participated in the drafting of MI 45-108, has also … Continue Reading

Six provinces introduce start-up crowdfunding exemptions for non-reporting issuers, Ontario expects to publish new rule this fall

Posted in Industry News, OSC, Registration

On May 14, 2015, six provincial securities regulators (British Columbia, Saskatchewan, Manitoba, Quebec, New Brunswick and Nova Scotia, and together, the “Participating Jurisdictions”) announced the implementation of substantially harmonized equity crowdfunding exemptions through Multilateral CSA Notice 45-316 – Start-up Crowdfunding Registration and Prospectus Exemptions (the “Notice”). Each Participating Jurisdiction has implemented the rules mentioned in the Notice by publishing a separate instrument, rule or blanket ruling. The new rules permit start-up and early stage companies in the Participating Jurisdictions to raise capital without having to comply with the prospectus requirement (the “Start-up Prospectus Exemption”) … Continue Reading

Le Canada entre dans l’ère du financement participatif*

Posted in Autorités canadiennes en valeurs mobilières, Continuous and Timely Disclosure, CSA, Proposals

Lorsque possibilité et nécessité se rencontrent, les marchés financiers innovent. Le financement participatif a ainsi été créé grâce à la conjugaison de l’avancement technologique actuel et d’un vide créé par la crise financière de 2008.

Le terme financement participatif désigne l’obtention de financement limité d’un nombre important d’investisseurs au service d’un projet précis, d’une entreprise ou de tout autre besoin, le plus souvent par l’intermédiaire d’un portail en ligne. Ce peut être à but lucratif ou non et prendre la forme de dons, de récompenses pour un effort, de prêts entre pairs ou d’émission de titres. Aujourd’hui, les prêts et … Continue Reading

Leveraging Crowdfunding: Adopting the Model at the Enterprise Level

Posted in OSC, Proposals

As noted in earlier blog posts here and here, the Ontario Securities Commission (“OSC”) initiated a consultation process in March 2014 on a proposed capital raising prospectus exemption aimed specifically at crowdfunded equity offerings (the “Crowdfunding Exemption”). This proposed exemption may allow businesses in Ontario to access capital (up to a maximum of $1.5 million in equity in any 12-month period) from a potentially large number of investors using an online “portal” platform that would be registered with the securities regulators. Currently, the OSC is in the process of reviewing public comments relating to the … Continue Reading

OSC Publishes Crowdfunding Exemption Proposal

Posted in Autorités canadiennes en valeurs mobilières, OSC, Proposals, Requests for Comment

On March 20, 2014, the Ontario Securities Commission published four new prospectus exemptions for a 90-day public comment period, including a prospectus exemption for equity crowdfunding (the “Crowdfunding Exemption”). The purpose of this exemption is to allow Canadian businesses, especially start-ups and early stage businesses, to access capital from a potentially large number of investors using an online “portal” platform that would be registered with the securities regulators.… Continue Reading

Saskatchewan Becomes the First Canadian Jurisdiction to Exempt Equity Crowdfunding from Prospectus Requirements

Posted in Exempt Market Dealers, OSC, SEC

On December 6, 2013, Saskatchewan became the first Canadian jurisdiction to implement Rules that provide a prospectus exemption for equity crowdfunding. The Rules allow Saskatchewan start-ups and small businesses to raise capital through equity crowdfunding by selling their securities to the general public without a prospectus.

The Saskatchewan exemption is available subject to certain conditions, including the following:

  • Both the business and the investor must have an address in Saskatchewan;
  • The business must make available to investors a very simple offering document, in prescribed form;
  • The investment must be intermediated by an online funding portal that has filed with
Continue Reading

OSC Publishes Progress Report on Exempt Market Review and “Crowdfunding”

Posted in Exempt Market Dealers, OSC, Proposals

The Ontario Securities Commission is conducting a broad review of the “exempt market”, in which securities are issued and acquired without the need for a prospectus. The goal of the review is to identify possible new prospectus exemptions that would facilitate capital raising for business enterprises, particularly start-ups and small and medium-sized enterprises.

In a recently published progress report, the OSC summarizes work completed to date and provides a summary of consultations held with various stakeholders. One particularly well-received proposal was the “crowdfunding” exemption, a method of funding a project through small amounts of money raised from a large … Continue Reading