Free to Trade: Securities Issued Under Reg A+ May Trade in Canada

One of the attractive aspects of Reg A+, as created by the JOBS Act of 2012, is the fact issuers may immediately trade securities following a funding round. This has led to a growing number of SMEs to raise capital under Reg A+ and quickly list shares on NYSE, NASDAQ or OTC Markets.

As the rule is still quite new, regulators continue to adapt to the new exemption. This holds true for Canada, a country that has leveraged Reg A+ for cross border funding rounds.

Earlier this week, the Ontario Securities Commission (OSC) published a document recognizing the ability for Reg A+ issues to trade immediately as well.  The approval was noted in a tweet by Alixe Cormick, a Canada based securities attorney and a leader in the crowdfunding movement.


While not a major change, the approval brings “greater certainty to cross-border activities” while making Reg A+ more amenable to issuers. While the Canadian securities market is governed by multiple provincial regulators, Ontario is the financial center and other provinces should follow suit.

Reg A+ OSC rule_20171221_72-503_rfc_distributions-outside-canada
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