Portal Registration Requirements

In a previous bulletin on the recently proposed crowdfunding securities regulations, we noted that start-ups using crowdfunding to raise money by offering securities to investors in certain provinces of Canada will be required to use a single website or online "funding portal" through which the offering is made. These portals may have to be "registered funding portals" depending on whether the offering is being made in accordance with the "Crowdfunding Exemption" or the "Start-Up Exemption".¹

If the Crowdfunding Exemption is used, the portal must be registered with the applicable securities regulator as a restricted dealer. It cannot be registered in any other dealer or advisor category, and can only act as an intermediary in connection offerings of securities under the Crowdfunding Exemption. It will not be permitted to engage in other dealer activities, but may facilitate other crowdfunding activities that do not involve securities.²