Regulatory Alerts2021-06-23
Regulation 45-110 respecting Start-up Crowdfunding Registration and Prospectus Exemptions
The Canadian Securities Administrators issued Regulation 45-110 to establish a prospectus exemption for start-up crowdfunding distributions and define the operational requirements for funding portals. The regulation permits issuers to raise up to $1.5 million annually through platforms that facilitate transactions without providing investment advice, subject to strict disclosure and investor protection conditions. It mandates that funding portals maintain client assets in trust, enforce investment limits for retail investors, and ensure issuers provide specific offering documents to purchasers.
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