This is a specific equity crowdfunding framework that builds on the
model proposed and published by the Ontario Securities Commission
in December 2012, but now has five other jurisdictions joining
Ontario in considering this proposed capital raising
This exemption was modelled upon an existing Saskatchewan General
Order 45-925 Saskatchewan Equity Crowdfunding Exemption
that became effective December 6, 2013. The Start-Up Crowdfunding
Exemption is being considered by the Participating Jurisdictions
While the British Columbia Securities Commission (the BCSC) did
not participate in the publication of the Start-Up Crowdfunding
Exemption, it did publish BCSC Notice 2014/33, which requested comment on
whether it should adopt a similar exemption in British
The BCSC its view that a form of equity crowdfunding is already
permitted in British Columbia with the use of the offering
memorandum exemption in Section 2.9 of National Instrument 45-106
Prospectus and Registration Exemptions (NI
New Tools for an Old Concept
While the popularity of equity crowdfunding is relatively new,
the discussion surrounding the sale of securities over the internet
is not. In 1999, the CSA adopted National Policy 47-201 Trading
in Securities Using the Internet and Other Electronic Means,
which set out the views of securities regulators regarding the use
of the internet. As that policy makes clear, even in the absence of
Proposed MI 45-108 and the Start-up Crowdfunding Exemption, trades
can done today over the internet in reliance on existing
exemptions, such as the accredited investor exemption in section
2.3 of NI 45-106. However, there can be no denying that such an
approach can prove cumbersome, and the proposed tailor-made
exemptions are therefore worthy of careful consideration.
Each of Proposed MI 45-108, the Start-up Crowdfunding Exemption
and BC Notice 2014/33 are open for comment until June 18, 2014.
Future Blog Posts
Future blog posts will examine this new eco-system of capital
raising and provide insight and commentary so keep reading.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).