Regulatory Alerts2020-02-27
CSA Notice of Consultation: Draft Regulation 45-110 respecting Start-up Crowdfunding Registration and Prospectus Exemptions
The Canadian Securities Administrators have published Draft Regulation 45-110 to harmonize national rules for start-up securities crowdfunding by replacing existing blanket orders with a unified registration and prospectus exemption framework. The proposed regulation permits non-reporting issuers to raise up to $1,000,000 in aggregate proceeds over a 12-month period through online funding portals, subject to individual investor limits of $2,500 or $5,000 with professional advice. This consultation seeks public feedback on the draft regulation, accompanying guides, and specific questions regarding investment caps, offering limits, and the potential repeal of the unused Regulation 45-108.
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