Regulatory Alerts2021-09-21
Regulation 45-110 Respecting Start-Up Crowdfunding Registration and Prospectus Exemptions
Canadian securities regulators issued Regulation 45-110 to establish a prospectus exemption for start-up crowdfunding distributions and define the operational requirements for funding portals. The regulation mandates that issuers meet specific eligibility criteria, including a $1.5 million fundraising cap and the use of designated offering documents, while funding portals must adhere to strict conduct rules regarding asset custody, investor disclosures, and platform access. These provisions apply across multiple jurisdictions with specific adaptations for Alberta, British Columbia, Ontario, Quebec, and Saskatchewan to facilitate capital formation for early-stage businesses.
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