Amendments To Canada’s Exempt Market Rules

The Canadian Securities Administrators (CSA) have published amendments to National Instrument 45-106 – Prospectus and Registration Exemptions (NI 45-106), which will take effect May 5, 2015, and are intended to enhance the protection of investors. The amendments will;

• require issuers relying on the accredited investor prospectus exemption (the AI Exemption) to obtain a signed risk acknowledgement form (the RA Form) from individual accredited investors who are not "permitted clients";
• restrict the minimum amount prospectus exemption (the MA Exemption) to non-individual investors;
• harmonize the definition of accredited investor to allow fully managed accounts to purchase investment fund securities in Ontario;