The BCSC has announced improvements to crowdfunding rules that will enable B.C.-based issuers to access investors in Alberta when conducting crowdfunding campaigns. The amendments also permit an increased investment, for some investors, of up to $5,000.
“With these amendments, B.C. is harmonizing the crowdfunding regime and providing start-up and early stage issuers with access to more potential investors and more investment dollars,” says Peter Brady, executive director of the BCSC.
The BCSC’s tech team recommended the amendments to B.C. Instrument 45-535 Start-up Crowdfunding Registration and Prospectus Exemptions (BCI 45-535), following stakeholder consultations and after reviewing the results of the BCSC’s 2017 tech survey. The BCSC launched the survey in January 2017 to learn what challenges and opportunities the sector currently faces.
Survey respondents who were involved in crowdfunding identified harmonization across jurisdictions as one of their biggest concerns. The new amendments take steps to resolve that issue by allowing an interface between the B.C. and Alberta crowdfunding rules.
Respondents also recommended increasing the investment amounts allowed under the current crowdfunding rules. The new amendments raise the investment limit from $1,500 to $5,000, if the investor has obtained advice from a registered dealer that the investment is suitable.
Brady anticipates issuing a publication later this year that will summarize the results of the survey and other fintech stakeholder consultations.