Regulatory Alerts2023-06-09
Regulation 45-108 Respecting Crowdfunding
This regulation establishes the crowdfunding prospectus exemption under the Securities Act, allowing eligible Canadian issuers to raise up to $1.5 million annually through registered funding portals without filing a full prospectus. It imposes strict investor protection measures, including acquisition cost limits for non-accredited and accredited investors, mandatory risk acknowledgments, and contractual rights of withdrawal and action for misrepresentation. The framework also mandates ongoing disclosure obligations for non-reporting issuers, requiring the delivery of annual financial statements with varying levels of review or audit depending on the total capital raised.
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