CSA reviews who can participate in prospectus-exempt security sales

Canadian regulatory body may propose changes based on public feedback

By Devika Patel

Knoxville, Tenn., Nov. 10 - The Canadian Securities Administrators is reviewing the minimum level of investment that allows buyers to participate in unregistered sales and the definition of an accredited investor.

The CSA said it is reviewing the C$150,000 minimum amount prospectus exemption and the accredited investor prospectus exemption contained in National Instrument 45-106 Prospectus and Registration Exemptions. Its staff may propose changes to the exemptions based on participant feedback received from stakeholders, including investors, issuers, registrants and professional advisers.

The consultation note, available on the CSA member websites, provides information on the scope of the review, including background on these exemptions and specific consultation questions for consideration.

The public comment period is open until Feb. 29.

"The CSA is undertaking this consultation with a view to ensuring that both of these exemptions continue to meet the needs of market participants by striking the appropriate balance between investor protection and efficient capital-raising in Canadian capital markets," CSA chair Bill Rice said in a press release.

Based in Vancouver, B.C., the CSA regulates Canadian capital markets.

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