Two regulators adopt self-certified investor prospectus exemption
Photo: Pexels | Liza Summer
The Alberta Securities Commission (ASC) and the Financial and Consumer Affairs Authority of Saskatchewan (FCAA) announced March 31 that they have adopted a new prospectus exemption aimed at providing increased access to capital for the provinces’ businesses and expanding investment opportunities for investors.
"This new financing tool will allow investors who have financial or investment education, such that they can appreciate the risks of investing, to invest alongside accredited investors," said Stan Magidson, Chair and CEO of the ASC. "This new exemption should expand the pool of potential investors in early stage businesses but with conditions designed to mitigate the risk," added Roger Sobotkiewicz, Chair and CEO of the FCAA.
To mitigate the risks of investing, self-certified investors are limited, in a calendar year, to investments of $10,000 in any one issuer and $30,000 across multiple businesses. The investment limits won't apply to an investment in an issuer listed on a Canadian stock exchange that is complying with its ongoing reporting obligations, provided that the investor has received suitability advice with respect to the investment.
The exemption is being implemented on a three-year pilot basis.