British Columbia Securities Commission

British Columbia Securities Commission

February 27, 2014 11:00 ET

Canadian Securities Regulators Propose Changes to the Accredited Investor and Minimum Amount Investment Prospectus Exemptions

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 26, 2014) - The Canadian Securities Administrators (CSA) today published for comment proposed amendments relating to the accredited investor prospectus exemption (AI exemption) and the minimum amount investment prospectus exemption (MA exemption) in National Instrument 45-106 Prospectus and Registration Exemptions.

The proposed amendments include, among other things:

  1. a new risk acknowledgement form for individual accredited investors that describes, in plain language, the categories of individual accredited investor, and the protections an investor will not receive by purchasing under the AI exemption; and
  2. restricting the MA exemption to distributions to non-individual investors.

"These amendments are intended to address investor protection concerns, while balancing the capital raising challenges facing issuers," said Bill Rice, Chair of the CSA and Chair and CEO of the Alberta Securities Commission. "Concerns include individual investors not understanding the risks of investing under the AI exemption, and individuals investing more than they can afford to meet the requirements of the MA exemption."

The proposed amendments would also amend the definition of accredited investor in Ontario to allow fully managed accounts to purchase investment fund securities using the managed account category of the AI exemption, as is permitted in other Canadian jurisdictions. The Ontario Securities Commission's proposal to make this change would harmonize this category of the AI exemption in Canada.

The proposed amendments are the result of a comprehensive review by the CSA of both the AI and MA exemptions that involved stakeholder consultation across Canada, a review of enforcement cases and a thorough examination of data from exempt distribution reports filed over a 12-month period.

The CSA notice and the proposed amendments are available on CSA members' websites. The comment period is open until May 28, 2014.

The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

Contact Information

  • British Columbia Securities Commission
    Richard Gilhooley
    604-899-6713

    Autorite des marches financiers
    Sylvain Theberge
    514-940-2176

    Alberta Securities Commission
    Mark Dickey
    403-297-4481

    Ontario Securities Commission
    Carolyn Shaw-Rimmington
    416-593-2361

    Manitoba Securities Commission
    Kevan Hannah
    204-945-1513

    Financial and Consumer Services Commission New Brunswick
    Wendy Connors-Beckett
    506-643-7745

    Nova Scotia Securities Commission
    Tanya Wiltshire
    902-424-8586

    PEI Securities Office
    Janice Callbeck
    Office of the Attorney General
    902-368-6288

    Financial Services Regulation Div. Newfoundland and Labrador
    Don Boyles
    709-729-4501

    Office of the Yukon Superintendent of securities
    Rhonda Horte
    867-667-5466

    Nunavut Securities Office
    Louis Arki
    867-975-6587

    Northwest Territories Securities Office
    Donn MacDougall
    867-920-8984

    Financial and Consumer Affairs Authority of Saskatchewan
    Daniela Machuca
    306-798-4160