Canadian Securities Regulators Grant Exemptions From Wrapper Requirements

A group of securities dealers has successfully obtained relief from most of the requirements that typically drive the need for a Canadian private placement supplement, or wrapper, for selling securities of non-Canadian issuers into Canada.

The exemption order issued by the Canadian securities regulators was the culmination of nearly two years of effort by the applicants, including extensive negotiation of the terms and conditions of the exemption. It will come into effect on June 22, 2013.

When Will the Exemption Be Available?

The exemption will apply to sales of securities in Canada that are made by one of the dealers named in the exemption order or one of its affiliates.

The offering must be made primarily outside Canada, and the securities must be issued by an issuer that is incorporated, formed or created outside Canada, is not a reporting issuer in Canada and does not have its head office or principal executive office in Canada.