ASC proposes rule to help facilitate cross-border offerings

The Alberta Securities Commission (ASC) is proposing to replace its rule governing issuers that distribute securities to investors outside Canada.

The regulator is proposing to repeal and replace ASC Rule 72-501 Distributions to Purchasers Outside Alberta. The proposed rule expands the exemptions available when an Alberta issuer distributes securities to investors outside of Canada. It also provides a prospectus exemption for distributions made under the offering memorandum exemption within Canada.

The proposed exemptions are conditional on material compliance with the securities laws of the purchaser’s jurisdiction, the ASC said in a release.

“We believe the proposed rule strikes the right balance between investor protection and facilitating cross-border offerings by avoiding the duplicative application of Alberta requirements where the offering is subject to foreign securities laws,” said Stan Magidson, chair and CEO of the ASC, in a release.

The proposed rule will also replace ASC Blanket Order 45-519 Prospectus Exemptions for Resale Outside of Canada and contain the two current prospectus exemptions for the resale of securities of a non-reporting issuer outside of Canada.

The notice can be read here.

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