Regulator introduces crowdfunding order
The Ontario Securities Commission (OSC) has made an interim order for registration and prospectus exemptions for start-up crowdfunding in light of COVID-19 and the challenges it presents to small businesses seeking to raise capital.
The order, which takes effect July 30, is substantially similar to the local exemptions in British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick and Nova Scotia.
Crowdfunding national instrument will harmonize exemptions across the country
On February 27, 2020, the Canadian Securities Administrators published for comment National Instrument 45-110 Start-Up Crowdfunding Registration and Prospectus Exemptions, which will replace and harmonize the local start-up crowdfunding exemptions in British Columbia, Alberta, Saskatchewan, Manitoba, Québec, New Brunswick and Nova Scotia (as well as those in Ontario adopted through the interim order). The comment period on the Proposed National Instrument ended on July 13, 2020.
“The adoption of the Interim Ontario order will better facilitate access to capital for start-ups and other small businesses, while still providing appropriate investor protection,” said Louis Morisset, Chair of the CSA and president and CEO of the Autorité des marchés financiers. “These types of businesses have faced significant funding challenges as a result of the pandemic, and can benefit from having more unified regulatory requirements to expand their access to capital.”