Archived Notices, Instruments, Rules and Policies

 

 

July 7, 2016

 

Introduction

 

On April 7, 2016, the Canadian Securities Administrators (the CSA or we) published amendments to National Instrument 45-106 Prospectus Exemptions (NI 45-106), which came into force in all CSA jurisdictions on June 30, 2016.[1] The amendments to NI 45-106 introduced a new harmonized report of exempt distribution, Form 45-106F1 Report of Exempt Distribution (Form 45-106F1).

 

This Notice addresses the granting of an exemption for certain foreign issuers from the requirement in Schedule 1 of Form 45-106F1 to identify whether a purchaser is a registrant or an insider of the issuer.

 

Substance and Purpose

 

In Schedule 1 of Form 45-106F1, issuers and underwriters are required to identify whether a purchaser is a registrant or an insider of the issuer. This requirement is found in clauses (f)1 and (f)2[2] of Schedule 1, respectively. In general, this information is necessary for securities regulators to identify connections between purchasers and issuers, which facilitates our oversight of the exempt market and supports our compliance programs.

 

Since publication of Form 45-106F1 on April 7, 2016, the CSA has been advised of concerns expressed by foreign issuers and dealers conducting offerings into Canada about the requirement to determine whether a purchaser is a registrant or an insider of the issuer, as those terms are defined under Canadian securities law.

 

In light of these concerns, relief is being provided from the requirement to disclose whether a purchaser is a registrant or an insider of the issuer if one or more of the following apply:

(a)    the issuer is a foreign public issuer;[3]

(b)   the issuer is a wholly owned subsidiary of a foreign public issuer;[4]

(c)    the issuer is distributing eligible foreign securities only to permitted clients.[5]

 

This relief aligns with the exemptions already provided to certain foreign issuers in Item 9 and Schedule 2 of Form 45-106F1.

 

All CSA members, except Ontario, are issuing blanket orders effective June 30, 2016.[6] The blanket orders are available on the websites of the applicable CSA members and a list of the blanket orders is contained in Annex A of this Notice.

 

As blanket orders are not authorized under Ontario securities law, the Ontario Securities Commission (the OSC) has approved an amendment instrument (the Ontario Amendment) providing the same relief that will amend NI 45-106 in Ontario only. If the Ontario Minister of Finance approves the Ontario Amendment within 60 days of delivery of the Ontario Amendment, it will come into force 15 days after the Ontario Amendment is approved. More detail of the Ontario Amendment is provided in Chapter 5 of the July 7, 2016 OSC Bulletin, and is also available on the OSC website at http://www.osc.gov.on.ca.

 

Annex to Notice

 

Annex A – List of Blanket Orders

 

Questions

 

If you have any questions about this Notice, please contact any of the following:

 

Jo-Anne Matear Manager, Corporate Finance Branch Ontario Securities Commission 416-593-2323 jmatear@osc.gov.on.ca	Daphne Wong Legal Counsel, Corporate Finance Branch Ontario Securities Commission 416-593-8125 dwong@osc.gov.on.ca
Kevin Yang Senior Research Analyst, Strategy and Operations Ontario Securities Commission 416-204-8983 kyang@osc.gov.on.ca	Frederick Gerra Legal Counsel, Investment Funds and Structured Products Ontario Securities Commission 416-204-4956 fgerra@osc.gov.on.ca
Lina Creta Senior Accountant, Compliance and Registrant Regulation Branch Ontario Securities Commission 416-593-8963 lcreta@osc.gov.on.ca
Victoria Steeves Senior Legal Counsel, Corporate Finance British Columbia Securities Commission 604-899-6791 vsteeves@bcsc.bc.ca	Jody-Ann Edman Assistant Manager, Financial Reporting British Columbia Securities Commission 604-899-6698 jedman@bcsc.bc.ca
Christopher Peng  Legal Counsel, Corporate Finance Alberta Securities Commission 403-297-4230 christopher.peng@asc.ca	Steven Weimer  Team Lead, Compliance, Data & Risk Alberta Securities Commission 403-355-9035 steven.weimer@asc.ca
Tony Herdzik Deputy Director, Corporate Finance Financial and Consumer Affairs Authority of Saskatchewan 306-787-5849 tony.herdzik@gov.sk.ca	Wayne Bridgeman Deputy Director, Corporate Finance Manitoba Securities Commission 204-945-4905 wayne.bridgeman@gov.mb.ca
Georgia Koutrikas Analyst, Corporate Finance Autorité des marchés financiers 514-395-0337 ext: 4393 georgia.koutrikas@lautorite.qc.ca	Suzanne Boucher Senior Analyst, Investment Funds Autorité des marchés financiers 514-395-0337 ext: 4477 suzanne.boucher@lautorite.qc.ca
Ella-Jane Loomis Senior Legal Counsel, Securities Financial and Consumer Services Commission (New Brunswick) 506-658-2602 ella-jane.loomis@fcnb.ca	Kevin G. Redden Director, Corporate Finance Nova Scotia Securities Commission 902-424-5343 kevin.redden@novascotia.ca
Jack Jiang Securities Analyst, Corporate Finance Nova Scotia Securities Commission 902-424-7059 jack.jiang@novascotia.ca	Steven D. Dowling Acting Director Consumer, Labour and Financial Services Division Department of Justice and Public Safety Government of Prince Edward Island 902-368-4551 sddowling@gov.pe.ca
John O’Brien Superintendent of Securities Office of the Superintendent of Securities Government of Newfoundland and Labrador 709-729-4909 JohnOBrien@gov.nl.ca	Rhonda Horte Securities Officer Office of the Yukon Superintendent of Securities Government of Yukon 867-667-5466 rhonda.horte@gov.yk.ca
Thomas W. Hall Superintendent of Securities Department of Justice Government of the Northwest Territories 867-767-9305 tom_hall@gov.nt.ca	Jeff Mason Superintendent of Securities Department of Justice Government of Nunavut 867-975-6591 jmason@gov.nu.ca

 

 

 

Alberta Securities Commission

Alberta Securities Commission Blanket Order 45-518 Exemption Regarding Certain Purchaser Information

 

British Columbia Securities Commission

BC Instrument 45-537 Exemptions from certain requirements in Form 45-106F1 Report of Exempt Distribution.

 

The Manitoba Securities Commission

Blanket Order 45-504 Exemptions from Certain Requirements in Form 45-106F1 Report of Exempt Distribution

 

Financial and Consumer Services Commission (New Brunswick)

Blanket Order No. 45-510 In the matter of exemptions from certain requirements in Form 45-106F1 Report of Exempt Distributions

 

Government of Newfoundland and Labrador, Office of the Superintendent of Securities

Blanket Order Number 100

 

Government of the Northwest Territories, Office of the Superintendent of Securities

Blanket Order 45-503 Exemptions from certain requirements in Form 45-106F1 Report of Exempt Distribution

 

Nova Scotia Securities Commission

Blanket Order No. 45-527

 

Government of Nunavut, Department of Justice

Blanket Order 45-503 Exemptions from certain requirements in Form 45-106F1 Report of Exempt Distribution

 

Prince Edward Island Superintendent of Securities

Blanket Order 45-512 Exemptions from certain requirements in Form 45-106F1 Report of Exempt Distribution

 

Autorité des marchés financiers

Décision n^o 2016-PDG-0099 Décision générale relative à la dispense pour certains émetteurs étrangers de fournir certains renseignements exigés dans la déclaration de placement avec dispense établie en la forme prévue à l‘Annexe 45-106A1 du Règlement 45‑106 sur les dispenses de prospectus

 

 

 

Financial and Consumer Affairs Authority of Saskatchewan

General Order 45-502 Exemptions from certain requirements in Form 45-106F1 Report of Exempt Distribution

 

Office of the Yukon Superintendent of Securities

Superintendent Order 2016/02 Exemptions from certain requirements in Form 45-106F1 Report of Exempt Distribution