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Mar 31, 2021
Calgary – The Alberta Securities Commission (ASC) and the Financial and Consumer Affairs Authority of Saskatchewan (FCAA) have adopted a new prospectus exemption designed to provide greater access to capital for Alberta and Saskatchewan businesses and broaden investment opportunities for Alberta and Saskatchewan investors.
"This new financing tool will allow investors who have financial or investment education, such that they can appreciate the risks of investing, to invest alongside accredited investors," said Stan Magidson, Chair and CEO of the ASC. “This new exemption should expand the pool of potential investors in early stage businesses but with conditions designed to mitigate the risk," added Roger Sobotkiewicz, Chair and CEO of the FCAA.
The new prospectus exemption outlines that investors who certify to having certain financial and investment knowledge, and acknowledge that they understand certain investment considerations and risks, are permitted to invest alongside accredited investors. To mitigate the risks of investing, self-certified investors are limited, in a calendar year, to investments of $10,000 in any one issuer and $30,000 across multiple businesses. The investment limits won't apply to an investment in an issuer listed on a Canadian stock exchange that is complying with its ongoing reporting obligations, provided that the investor has received suitability advice with respect to the investment.
The exemption is being implemented on a three-year pilot basis. Details of the new exemption are set out in Multilateral CSA Notice of Implementation Alberta and Saskatchewan Orders 45-538 Self-Certified Investor Prospectus Exemption available on the websites of the ASC and the FCAA.
The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
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