The Alberta Securities Commission (ASC) has adopted a “Blanket Order” for Startup Crowdfunding Registration and Prospectus Exemptions.
The new rule is described as removing “unnecessary barriers to financing, and better facilitate access to capital for start-ups and other small businesses.”
The ASC states that both issuers and registered funding portals may use the Blanket Order. It is also available to unregistered funding portals as soon as they comply with the terms of the registration exemption, which includes receiving confirmation that ASC staff have received all required documents.
“The ASC continues to participate with its colleagues in the Canadian Securities Administrators in implementing a national instrument to address start-up crowdfunding,” said Stan Magidson, Chair and Chief Executive Officer of the ASC. “The Blanket Order is intended as an interim measure before a national instrument is implemented. It will increase harmonization and facilitate Alberta businesses raising money in multi-jurisdictional start-up crowdfunding offerings in participating jurisdictions and allow Alberta investors to participate, while still providing appropriate investor protection.”
A copy of the Blanket Order can be found on our website at albertasecurities.com.
The ASC is a member of the Canadian Securities Administrators, a national entity for securities officials. Currently, all securities are regulated at the provincial level but a push to harmonize investment crowdfunding rules has been proposed.
Details on the ASC rules are below.
Canada 5483705-v1-ASC_Notice re Blanket_Order_45-521