CSA Adopt Nationally Harmonized Crowdfunding Registration And Prospectus Exemptions

New CSA rules will provide an exemption to prospectus requirements for start-ups distributing securities through an online funding portal.

• National Instrument 45-110 is intended to facilitate securities crowdfunding for start-ups and early stage issuers on a national basis.
• New exemptions will include a prospectus exemption, as well as an exemption from the dealer registration rules for funding portals.
• National Instrument 45-110 will replace the local exemption orders currently in force on a province-by-province basis.
• Assuming Ministerial approvals are obtained, the new national instrument will take effect on September 21, 2021.

On June 23, 2021, the Canadian Securities Administrators (CSA) announced the adoption of National Instrument 45-110 Start-up Crowdfunding Registration and Prospectus Exemptions (NI 45-110), and published start-up crowdfunding guides for businesses and funding portals. NI 45-110 is intended to facilitate