The Canadian Securities Administrators recently announced that they are developing a national
instrument intended to replace the existing local orders in
various provinces that currently provide registration and
prospectus exemption related to start-up crowdfunding.
As
we discussed in May 2015, the securities regulators of British
Columbia, Saskatchewan, Manitoba, Quebec, New Brunswick and Nova
Scotia adopted registration and prospectus exemptions at that time
intended to allow Canadian start-ups and early stage companies to
raise capital through crowdfunding in the participating
jurisdictions. The exemptions were enacted through local blanket
orders, and are set to expire on May 13, 2020.
