Changes to start-up crowdfunding exemption will increase access to capital for B.C. issuers
Sep 21, 2017
On September 21, 2017, the British Columbia Securities Commission (BCSC) announced improvements to crowdfunding rules that will enable B.C.-based issuers to access investors in Alberta when conducting crowdfunding campaigns. The amendments also permit an increased investment, for some investors, of up to $5,000.
“With these amendments, B.C. is harmonizing the crowdfunding regime and providing start-up and early stage issuers with access to more potential investors and more investment dollars,” said Peter Brady, Executive Director of the BCSC.
The BCSC’s Tech Team recommended the amendments to B.C. Instrument 45-535 Start-up Crowdfunding Registration and Prospectus Exemptions (BCI 45-535) following stakeholder consultations and after reviewing the results of the BCSC’s 2017 Tech Survey.
Survey respondents who were involved in crowdfunding identified harmonization across jurisdictions as one of their biggest concerns. The new amendments take steps to resolve that issue by allowing an interface between the B.C. and Alberta crowdfunding rules. Respondents also recommended increasing the investment amounts allowed under the current crowdfunding rules. The new amendments raise the investment limit from $1,500 to $5,000, if the investor has obtained advice from a registered dealer that the investment is suitable for them.
Review the press release and the crowdfunding page on the BCSC's website.
Related Topics
- Amendments to National Instrument 45-106: Prospectus and Registration Exemptions – Start-up Crowdfunding Exemption [Completed]
- Amendments to National Instrument 45-108: Prospectus and Registration Exemptions - Integrated Crowdfunding Exemption [Completed]
- Amendments to National Instrument 45-108: ASC Crowdfunding Exemption [Completed]
- Proposed New Multilateral Instrument 45-109, Prospectus Exemption for Start-up Businesses [Completed]