CSA Ready To Add New Disclosure Requirements For Issuers Using The OM Prospectus Exemption

The Canadian Securities Administrators (CSA) are amending National Instrument 45-106 Prospectus Exemptions (NI 45-106) to add new disclosure requirements (the "Amendments") for real estate issuers and others considered "collective investment vehicles" when raising funds pursuant to the offering memorandum exemption.

The Amendments also make some general changes to improve disclosure for investors, to "streamline" parts of NI 45-106. Provided that the CSA receives ministerial approvals, the changes will take effect on March 8, 2023. When relying on the offering memorandum (OM) prospectus exemption, issuers will need to follow the additional disclosure requirements, so they may want to consult a securities lawyer to ensure they are operating in compliance with the Amendments.