The Canadian Securities Administrators (CSA) published for
comment proposed amendments to the two most utilized private
placement exemptions: (i) the accredited investor exemption (the
"AI Exemption"), and (ii) the minimum
amount investment exemption (the "MA
Exemption"). The proposals were made based on
findings of a broad review of the exemptions.1 The
comment period expires May 28, 2014.
Proposed Amendments to the AI Exemption
The AI Exemption permits the distribution of securities without
a prospectus to corporate and institutional investors and
individual investors who meet certain criteria (including, for
individual investors, certain income or asset thresholds).
In response to concerns that individual investors may not
understand the risks of making an investment under the AI Exemption
or may not qualify as accredited investors, the CSA has proposed
that issuers relying on the AI Exemption be required to obtain a
completed risk acknowledgement form from
