Developments To Private Placement Rules Continue As Five Provinces Adopt New Prospectus Exemption

As development of private placement exemptions continues, securities regulators in British Columbia, Alberta, Saskatchewan, Manitoba and New Brunswick have adopted another exemption to the prospectus requirement (the "Investment Advice Exemption"). Subject to certain conditions, a reporting issuer may rely on the Investment Advice Exemption where securities are distributed to non-accredited investors who have obtained investment advice from a registered investment dealer. The Investment Advice Exemption became effective on January 14, 2016.

The introduction of the Investment Advice Exemption comes on the heels of a number of other private placement exemptions recently introduced by members of the Canadian Securities Administrators. For more information relating to these exemptions, see our Updates dated February 23, 2015, Update on Continuing Refinements to Private Placement Rules; October 26, 2015, Further Developments in Private Placement Exemptions for Start-ups;