Regulatory Alerts2022-11-24
Amendment to Policy Statement to Regulation 45-106 respecting Prospectus Exemptions
Canadian securities regulators have amended Policy Statement to Regulation 45-106 to introduce the Listed Issuer Financing Exemption, allowing eligible reporting issuers to raise limited capital without a prospectus. The exemption requires issuers to file Form 45-106F19 and a news release before soliciting purchasers, ensuring disclosure of all material facts and sufficient available funds for 12 months. Registrants involved in the distribution must comply with suitability and conflict of interest obligations, while purchasers retain statutory rights to rescind or claim damages for misrepresentations.
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