Following the lead of Saskatchewan, the security regulators of
Nova Scotia, Quebec, Saskatchewan, New Brunswick and Manitoba are
seeking feedback on proposed regulations with respect to raising
money and issuing securities via the internet
('Proposed Regulations'). Ontario and BC
have also proposed similar regulations. These Proposed Regulations
are only relevant if shares or other securities are issued in
exchanged for an investment. Therefore, donation-based
crowdfunding, where the donor may receive public recognition or a
product (such as a lifetime membership or discount) will not be
directly affected by these proposals.
If a company raises capital and issues securities via the
internet, security regulators must ensure that members of the
general public are protected from unscrupulous fundraising. In
general, a company must file a prospectus, or a significant
disclosure document, before issuing securities to the public unless
the company can rely on one of
