Released on July 9, 2013
Financial and Consumer Affairs Authority of Saskatchewan (FCAA) hosted an information session and discussion today regarding a proposed exemption to The Securities Act, 1988, which would allow equity crowdfunding in Saskatchewan.
Crowdfunding is growing in popularity around the world. In Canada, it’s being used to pre-sell products and receive donations for small businesses or creative projects. However, other jurisdictions such as the United States are beginning to think about equity crowdfunding: raising capital for small businesses or creative projects via an online funding portal by selling securities like shares, limited partnership units and promissory notes.
“As the regulator of securities in Saskatchewan, we are interested in hearing from small businesses in Saskatchewan to find out if there’s an interest in equity crowdfunding in our province,” FCAA CEO Dave Wild explained. “We want to discuss whether there is a funding gap for start-up businesses and small businesses and whether our regulations are too burdensome in that area – so we invited entrepreneurs to discuss whether equity crowdfunding could address some of those challenges.”
FCAA’s preliminary proposal details potential limits on the amounts and number of offerings that issuers, promoters, directors, and officers can open in a year as well as who would be allowed to use the equity crowdfunding exemption and how FCAA would regulate its use.
This discussion session is part of a preliminary consultation process to gauge interest in equity crowdfunding in Saskatchewan. If sufficient interest is expressed, FCAA will begin discussions with online funding portals.
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For more information, contact:
Daniela Machuca
Financial and Consumer Affairs Authority
Regina
Phone: 306-798-4160
Email: daniela.machuca@gov.sk.ca