Changes to BCSC Start-up Crowdfunding Exemption
On September 21, the British Columbia Securities Commission (BCSC) announced changes 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.
Now, in certain circumstances, investors living in British Columbia and Alberta can invest up to $5,000 via the start-up crowdfunding exemption if a registered dealer has determined the investment is suitable for that investor. Previously, the maximum amount was $1,500. The $1,500 limit remains in place for all other circumstances.
The changes to the exemption are based on the BCSC Tech Team’s 2017 Tech Survey. 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. Survey respondents also recommended increasing the investment amounts allowed under the current crowdfunding rules.
If you have any concerns about a person or company offering an investment opportunity, please contact BCSC Inquiries at 604-899-6854 or 1-800-373-6393 or through e-mail at inquirie[email protected]. You can also file a complaint or submit a tip anonymously using BCSC’s online complaint form.
InvestRight.org is the British Columbia Securities Commission’s investor education website.