Harmonized Reporting For Private Placements (With Increased Disclosure Requirements)

An issuer that distributes securities to the public must either file a prospectus with securities regulatory authorities and deliver such prospectus to prospective purchasers, or rely upon a prospectus exemption available under securities legislation. Issuers who rely on certain prospectus exemptions to distribute securities are required to file a report of exempt distribution with securities regulatory authorities within a prescribed time frame following each such distribution.

Background

On April 7, 2016, in an effort to adapt to the growing exempt market, provide securities regulators with the necessary information to facilitate more effective regulatory oversight of the exempt market and improve analysis for policy development purposes, the Canadian Securities Administrators (CSA) published amendments to National Instrument 45-106 – Prospectus Exemptions to create a harmonized report of exempt distribution and make amendments to related policies. As a