CSA reviewing "Accredited Investor" and "$150,000 Minimum Amount" exempt market client criteria

The CSA has released a Staff Consultation Note announcing a review of the Accredited Investor and $150,000 Minimum Amount exemptions under National Instrument 45-106 Prospectus and Registration Exemptions. 

CSA Staff Consultation Note 45-401 can be accessed HERE.

Securities regulators are concerned about whether certain classes of investors are suitable participants in the exempt market. Regulators are considering changing or even eliminating these exemptions which may negatively affect individuals who purchase exempt market securities.The proposed changes may also have significant harmful effects on issuers that raise capital through the exempt market due to a potential reduction in the pool of available exempt market securities purchasers. The CSA has invited public comments until February 29, 2012.

This is a crucial issue and could lead to major changes in the exempt market for investors, issuers, agents and EMDs. The CSA has not provided any meaningful analytical data which identifies a public policy issue or harm to be addressed and has only provided general comments on the recent global financial crisis as explanation for the review. 

The EMDA will be working hard on this issue, both behind the scenes and through a formal response to the CSA. We need your input - please help us understand how this review could impact you and share your comments on the potential regulatory changes affecting the exempt capital market. We also encourage investors, issuers, agents and EMDs to review the Staff Consultation Note and provide the CSA and your local securities regulator with your comments.   

Please contact us at: info@emdacanada.com or 1-877-363-3632 or direct your comments to a member of our Board of Directors or Executive team.

For further information please contact Geoffrey Ritchie, EMDA Executive Director at gritchie@emdacanada.com.