The Alberta Securities Commission is creating an exemption to make it easier for startups and other small businesses to seek crowdfunding.
The regulator will exempt issuers and registered funding portals from prospectus and registration requirements to facilitate startup crowdfunding and eliminate unnecessary barriers to financing for entrepreneurs. The exemption is also available to unregistered funding portals that comply with ASC terms and submit all required documents.
The ASC’s move is intended to be an interim measure before a national standard to address startup crowdfunding is implemented by the Canadian Securities Administrators.
“It will increase harmonization and facilitate Alberta businesses raising money in multi-jurisdictional startup crowdfunding offerings in participating jurisdictions and allow Alberta investors to participate, while still providing appropriate investor protection,” ASC chair and CEO Stan Magidson said in a news release.
Source: Calgary Sun