Alberta Securities Commission Adopts Crowdfunding Rule

Recently, the Alberta Securities Commission (the "ASC") adopted Multilateral Instrument 45-108 Crowdfunding. MI 45-108 provides a prospectus exemption designed to accommodate moderate financing requirements being raised through an online funding portal registered as an investment dealer, an exempt market dealer, or alternatively as a "restricted dealer funding portal". The new rule is actionable immediately and introduces a crowdfunding prospectus exemption for issuers as well as a registration framework for funding portals.

The adoption of MI 45-108 follows the recent adoption of the ASC's Prospectus Exemption for Start-up Businesses (ASC Rule 45-517, adopted July 19, 2016). ASC Rule 45-517 was designed to streamline small, local investment rounds for startups and high-growth companies, while still providing appropriate investor protection.