Regulatory Alerts2023-03-08
Policy Statement to Regulation 45-106 Respecting Prospectus Exemptions
The provincial and territorial securities regulatory authorities issued this policy statement to clarify the interpretation and application of Regulation 45-106 regarding prospectus exemptions for securities distributions. It mandates that sellers relying on exemptions must verify purchaser eligibility through reasonable steps, maintain detailed documentation, and avoid using newly created entities to circumvent investment thresholds. The guidance also defines key regulatory terms, outlines registration obligations for dealers and representatives, and prohibits misleading representations during exempt trades.
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