Regulatory Alerts2023-06-09
Policy Statement to Regulation 45-106 Respecting Prospectus Exemptions
The Canadian Securities Administrators issued this policy statement to clarify the interpretation and application of Regulation 45-106 regarding prospectus exemptions and issuer bid requirements. It establishes that sellers are responsible for verifying purchaser eligibility and must take reasonable steps to confirm that investors meet specific income, asset, or relationship criteria. The document further prohibits the use of syndicates created solely to access exemptions and outlines strict compliance obligations for underwriters and registered dealers to prevent indirect distributions.
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