Canadian Securities Administrators Propose Changes To The Offering Memorandum Prospectus Exemption

Summary

The Canadian Securities Administrators (CSA) recently published for comment proposed amendments to the offering memorandum prospectus exemption (the “OM Exemption”) for issuers engaged in “real estate activities” and issuers that are “collective investment vehicles”. The proposed amendments would result in new disclosure requirements for these types of issuers who wish to issue securities in reliance on the OM Exemption, as well as make a number of more general amendments aimed at clarifying or streamlining certain aspects of National Instrument 45-106 – Prospectus Exemptions (“NI 45-106”).  The comment period for the proposed amendments will close on December 16, 2020.