ASC Seeks Comment On Proposed New Small Business Finder’s Exemption

CALGARY – March 25, 2021 – The Alberta Securities Commission (ASC) is seeking input on a proposed new registration exemption for finders to help start-ups and other small businesses in Alberta with capital raising.

The proposed new small business finder’s exemption would replace ASC Blanket Order 31-505 Registration Exemption For Trades In Connection With Certain Prospectus-Exempt Distributions (known as the northwestern exemption). It will provide a more targeted exemption from the dealer registration requirement that is intended to enhance investor protection and better integrate with the existing and proposed prospectus exemptions that small businesses in Alberta can rely on.

“Small businesses are an important part of our economy. We understand that when they are raising small amounts of capital, they may not be able to attract a registered dealer to assist with the financing and may need to look to finders to help them identify potential investors,” said Stan Magidson, Chair and CEO of the ASC. “The goal of this proposed exemption is to assist Alberta small businesses address their capital raising challenges but with conditions that prioritize investor protection.”

Details of the proposal are set out in ASC Notice and Request for Comment Proposed Revocation of ASC Blanket Order 31-505 Registration Exemption For Trades In Connection With Certain Prospectus-Exempt Distributions and Replacement with Proposed ASC Blanket Order 31-536 Alberta Small Business Finder’s Exemption. The comment period for the proposed new registration exemption is open until May 7, 2021.

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.

Source: ALBERTA SECURITIES COMMISSION (ASC)

Close Menu