B.C. Simplifies Rules For Selling Securities To Non-Residents

The British Columbia Securities Commission (BCSC) has made it easier for B.C. issuers to access capital outside the province. As of October 31, 2017, three new and/or improved exemptions to the prospectus requirement are available for distributions to purchasers outside B.C.:

• Private placement exemption (improved)
• Public offering exemption (new)
• Testing of the waters exemption (new).

The changes are found in the new BC Instrument 72-503 Distribution of Securities outside British Columbia, which revokes and replaces the previous version of the same instrument.

Background

• Under B.C. securities laws, and in particular under BC Instrument 72-702 Distribution of Securities to Persons Outside British Columbia, a distribution is deemed to take place in B.C. where an issuer with a substantial connection to B.C. distributes securities outside of the province.