Saskatchewan and Alberta Make Cross-Border Financing Easier
The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) has changed its start-up crowdfunding exemption to allow businesses in Saskatchewan and Alberta to raise funds from investors residing in those provinces.
“This change will enhance capital raising opportunities for businesses in Saskatchewan and Alberta and investment opportunities for investors in those provinces,” FCAA CEO Roger Sobotkiewicz said. “Given the geographical proximity, and similarities in industries, it makes sense for us to co-ordinate our efforts to facilitate cross-border financings with our neighbouring provinces.”
To allow for the interjurisdictional raising of capital, Saskatchewan has amended General Order 45-929 Start-up Crowdfunding Registration and Prospectus Exemptions (SK GO 45-929), and Alberta has changed the Companion Policy to Alberta Securities Commission (ASC) Rule 45-517 to clarify how cross-border financings will work.
Start-ups and early stage businesses must be aware of the different requirements in each jurisdiction and comply with the requirements of both SK GO 45-929 and ASC Rule 45-517. One significant difference between the two exemptions is that in order to raise money through a crowdfunding portal in Alberta, businesses must use a registered dealer.
In Saskatchewan, businesses must use an online funding portal, which is not required to be operated by a registered dealer. For more information about SK GO 45-929 visit www.fcaa.gov.sk.ca/Exemption-Order-45-929. The ASC Rule 45-517 can be found on the ASC website at www.albertasecurities.com.
The FCAA is a Crown corporation responsible for developing and enforcing Saskatchewan securities laws, which regulate Saskatchewan capital markets and protect investors.
The ASC is the regulatory authority responsible for administering Alberta's securities laws. The ASC is entrusted to foster a fair and efficient capital market in Alberta and to protect investors.
As members of the Canadian Securities Administrators, the FCAA and ASC work to improve, co-ordinate and harmonize the regulation of Canada's capital markets.