Regulatory Alerts2021-07-01
Policy Statement to Regulation 45-106 Respecting Prospectus Exemptions
The Canadian Securities Administrators issued this policy statement to clarify the interpretation and application of prospectus exemptions under Regulation 45-106. It establishes that sellers are responsible for verifying purchaser eligibility and implementing reasonable steps to confirm compliance with accredited investor, relationship-based, and other exemption criteria. The document further prohibits the use of syndications to circumvent investment limits and outlines specific obligations for registered dealers regarding suitability and anti-misrepresentation.
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