News Releases
ASC adopts Crowdfunding rule enabling Alberta’s small and medium businesses to raise capital online
Oct 31, 2016
CALGARY – October 31, 2016 – The Alberta Securities Commission (ASC) announced today that it has adopted Multilateral Instrument 45-108 Crowdfunding (MI 45-108). The new rule is available immediately and introduces a crowdfunding prospectus exemption for issuers as well as a registration framework for funding portals.
The implementation of MI 45-108 follows the recent adoption of ASC Rule 45-517 Prospectus Exemption for Start-up Businesses (ASC Rule 45-517), which was introduced to help facilitate Alberta-based small or start-up issuers seeking to raise modest amounts of capital from Alberta investors. MI 45-108 is viewed to be complementary with ASC Rule 45-517 and is designed to accommodate moderate financings being raised strictly through an online funding portal across multiple jurisdictions in Canada.
“Small and medium-sized businesses have unique needs and often limited resources. We believe that the introduction of these rules creates an attractive financing platform for these companies to raise funds locally and across Canada, while at the same time providing an appropriate level of investor protection,” said Stan Magidson, Chair and Chief Executive Officer of the ASC.
The key elements of the two regimes are outlined briefly below. Details on ASC Rule 45-517 and MI 45-108 can be found on the ASC website at www.albertasecurities.com.
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ASC Rule 45-517
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MI 45-108
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Investment Limits
(per investor)
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$1,500/distribution
$5,000 with positive suitability advice from a registered dealer $5,000 with positive suitability advice from a registered dealer
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$2,500/distribution
$25,000 for accredited investors
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Offering Limits
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$250,000 per offering $250,000 per offering
Maximum 2 offerings/year Maximum 2 offerings/year
Lifetime limit $1,000,000 Lifetime limit $1,000,000
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$1,500,000/12 months
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Online Funding Portals
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No registration exemption.
Use of funding portal not required
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Must use a registered funding portal
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The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.
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For more information:
For Media Inquiries:
Nicole Tuncay
Senior Communications Advisor
403-297-4008
For Investor Inquiries:
ASC Public Inquiries
Toll Free: 1-877-355-4488
inquiries@asc.ca