Securities Law & Instruments

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PDF Version


CSA Staff Notice 45-314 – Updated List of Current Exempt Market Initiatives



First published March 20, 2014 -- Revised January 28, 2016

January 28, 2016

Introduction

Modernization of the exempt market regulatory regime is a major priority for the Canadian Securities Administrators (CSA). In keeping with this, CSA members have published or adopted a series of significant initiatives related to prospectus exemptions. This notice describes all of these initiatives in one place for the benefit of industry and investors.

Further information about each initiative, and the text of the new exemptions and proposed amendments, is or will be available on the websites of the following CSA websites:

www.lautorite.qc.ca
www.albertasecurities.com
www.bcsc.bc.ca
nssc.novascotia.ca
www.fcnb.ca
www.osc.gov.on.ca
www.fcaa.gov.sk.ca
www.mbsecurities.ca

Updated List of Initiatives

Initiatives

Jurisdiction(s)

Summary of Latest Developments

Date

 

Short-Term Debt

 

Short-Term Debt (s. 2.35 of NI 45-106 Prospectus Exemptions)

All

In effect:

May 5, 2015

 

 

Amendments to modify the minimum credit rating requirement when an issuer obtains more than one credit rating

 

 

 

Makes this exemption unavailable for securitized products

 

 

Short-Term Securitized Products (s. 2.35.1 of NI 45-106)

All

In effect:

May 5, 2015

 

 

New prospectus exemption for short-term securitized products (ABCP) with additional credit rating, liquidity and disclosure requirements

 

 

Accredited Investor, Minimum Amount and Family, Friends and Business Associates

 

Accredited Investor (s. 2.3 of NI 45-106)

All

In effect:

May 5, 2015

 

 

Amendments to require persons relying on the prospectus exemption to obtain a signed risk acknowledgement from certain individual accredited investors

 

 

 

Expanded guidance on steps issuers can take to verify accredited investor status

 

 

 

Introduced family trusts as a category of accredited investor

 

 

 

ON

In effect:

May 5, 2015

 

 

Amendments to the definition of accredited investor to allow fully managed accounts to purchase investment fund securities using the managed account category of the prospectus exemption

 

 

$150,000 Minimum Amount Investment (s. 2.10 of NI 45-106)

All

In effect:

May 5, 2015

 

 

Amendments to restrict the prospectus exemption to distributions to non-individual investors

 

 

Family, Friends and Business Associates (s. 2.5 and s. 2.6.1 of NI 45-106)

ON

In effect:

May 5, 2015

 

 

New prospectus exemption for non-investment fund issuers similar to the FFBA exemption in other CSA jurisdictions

 

 

 

Repeal of existing founder, control person and family prospectus exemption

 

 

Existing Security Holder, Rights Offering and Investment Dealer

 

Existing Security Holder (General and blanket orders in jurisdictions other than AB and ON

BC, AB, SK, MB, QC, NL, NB, NS, PE, YK, NT, NU

In effect:

March 13, 2014

 

 

New prospectus exemption to allow issuers listed on certain Canadian stock exchanges to distribute securities to existing security holders in prescribed circumstances

 

s. 3 of ASC Rule 45-516 Prospectus Exemptions for Retail Investors and Existing Security Holders in AB

 

 

 

 

 

s. 2.9 of OSC Rule 45-501 Ontario Prospectus and Registration Exemptions in ON)

ON

In effect:

February 11, 2015

 

 

New prospectus exemption to allow non-investment fund issuers listed on certain Canadian stock exchanges to distribute securities to existing security holders in prescribed circumstances

 

 

Rights Offering (s. 2.1 of NI 45-106)

All

In effect:

December 8, 2015

 

 

Streamlined prospectus exemption to allow reporting issuers to raise capital by issuing rights to existing security holders

 

 

 

Securities are subject to seasoning period

 

 

Investment Dealer Exemption (General and blanket orders in jurisdictions other than AB

BC, AB, SK, MB, NB

In effect:

January 14, 2016

 

 

New prospectus exemption to allow issuers listed on a Canadian exchange to raise any amount of money from any investor who has received suitability advice from a registered investment dealer

 

s. 4 of ASC Rule 45-516 Prospectus Exemptions for Retail Investors and Existing Security Holders in AB)

 

 

 

 

 

Offering Memorandum, Crowdfunding and Start-up Business

 

Start-up Crowdfunding (Start-up Crowdfunding general and blanket orders)

BC, SK, MB, QC, NB, NS

In effect:

May 14, 2015

 

 

New prospectus and registration exemptions for start-up and early stage businesses

 

 

Start-up Business (proposed MI 45-109 Prospectus Exemption for Start-up Businesses)

AB, NU

Published for comment:

October 19, 2015

 

 

Proposed prospectus exemption for small and early-stage businesses

 

 

Offering Memorandum (s. 2.9 of NI 45-106)

ON

In effect:

January 13, 2016

 

 

New prospectus exemption for non-investment fund issuers similar to the offering memorandum exemption published by AB, SK, QC, NB and NS on October 29, 2015

 

 

 

AB, SK, QC, NB, NS

Advance notice of adoption:

October 29, 2015 (intended to be in force April 30, 2016)

 

 

Amendments to introduce new investor protection measures, including rolling investment limits, incorporation by reference of marketing materials and certain limited disclosure requirements for non-reporting issuers following a distribution

 

 

Crowdfunding (MI 45-108 Crowdfunding)

SK

Advance notice of adoption:

January 25, 2016 (implementation date subject to Ministerial approval)

 

 

New prospectus exemption for non-investment fund issuers

 

 

 

Registration framework for online funding portals as a dealer

 

 

 

MB, ON, QC, NB, NS

In effect:

January 25, 2016

 

 

New prospectus exemption for non-investment fund issuers

 

 

 

Registration framework for online funding portals as a dealer

 

 

Report of Exempt Distribution

 

Report of Exempt Distribution (Proposed Form 45-106F1)

All

Published for comment:

August 13, 2015

 

 

Proposal to introduce harmonized report of exempt distribution in Form 45-106F1

 

Questions

Please refer your questions to any of the following:

British Columbia
Peter Brady
Elliott Mak
Director, Corporate Finance
Senior Legal Counsel, Corporate Finance
British Columbia Securities Commission
British Columbia Securities Commission
604-899-6570
604-899-6501
Toll free across Canada: 800-373-6393
Toll free across Canada: 800-373-6393
<<pbrady@bcsc.bc.ca>>
<<emak@bcsc.bc.ca>>
 
Alberta
Jonathan Taylor
Denise Weeres
Manager, CD Compliance & Market Analysis, Corporate Finance
Manager, Legal, Corporate Finance
Alberta Securities Commission
Alberta Securities Commission
403-297-4770
403-297-2930
<<jonathan.taylor@asc.ca>>
<<denise.weeres@asc.ca>>
 
Saskatchewan
Sonne Udemgba
Tony Herdzik
Deputy Director, Legal, Securities Division
Deputy Director, Corporate Finance, Securities Division
Financial and Consumer Affairs Authority of Saskatchewan
Financial and Consumer Affairs Authority of Saskatchewan
306-787-5879
306-787-5849
<<sonne.udemgba@gov.sk.ca>>
<<tony.herdzik@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
Marah Smith
Manager, Corporate Finance
Legal Counsel, Corporate Finance
Ontario Securities Commission
Ontario Securities Commission
416-593-2323
416-204-8969
<<jmatear@osc.gov.on.ca>>
<<msmith@osc.gov.on.ca>>
 
Denise Morris
Senior Legal Counsel, Compliance and Registrant Regulation
Ontario Securities Commission
416-595-8785
<<dmorris@osc.gov.on.ca>>
 
Québec
Alexandra Lee
Gabriel Araish
Senior Regulatory Advisor
Senior Securities Analyst
Corporate Finance
Corporate Finance
Autorité des marchés financiers
Autorité des marchés financiers
514-395-0337, ext. 4465
514-395-0337, ext. 4414
<<Alexandra.Lee@lautorite.qc.ca>>
<<Gabriel.Araish@lautorite.qc.ca>>
 
New Brunswick
Susan W. Powell
Deputy Director, Securities
Financial and Consumer Services Commission (New Brunswick)
506-643-7697
<<susan.powell@fcnb.ca>>
 
Nova Scotia
Kevin Redden
Director, Corporate Finance
Nova Scotia Securities Commission
902-424-5343
<<kevin.redden@novascotia.ca>>
 
Prince Edward Island
Steve Dowling
General Counsel
Consumer, Labour and Financial Services Division
Department of Environment, Labour and Justice
Government of Prince Edward Island
902-368-4551
<<sddowling@gov.pe.ca>>
 
Newfoundland and Labrador
Nunavut
John O'Brien
Jeff Mason
Superintendent of Securities
Director of Legal Registries
Service NL
Department of Justice
Government of Newfoundland & Labrador
Government of Nunavut
709-729-4909
867-975-6591
<<JohnOBrien@gov.nl.ca>>
<<jmason@gov.nu.ca>>
 
Northwest Territories
Yukon
Thomas Hall
Rhonda Horte
Superintendent of Securities
Deputy Superintendent
Department of Justice
Office of the Yukon Superintendent of Securities
Government of the Northwest Territories
Yukon Government
867-873-7490
867-667-5466
<<tom_hall@gov.nt.ca>>
<<Rhonda.Horte@gov.yk.ca>>