The British Columbia Securities Commission (BCSC) yesterday published for comment a proposed new Form 45-106F6 British Columbia Report of Exempt Distribution that would require issuers to provide additional information for private placements taking place in British Columbia. Specifically, the new form would require additional information about purchasers, including identifying whether a purchaser is a promoter or an insider of the issuer. Non-reporting issuers would also be required to provide detailed information regarding their insiders and promoters. The BCSC also proposed making some of the information provided on the form publicly available. Characterizing the exempt market as "high-risk" for investors, the BCSC stated that the new disclosure requirements "should help BC investors make more informed investment decisions and improve transparency in the market."
The proposed new form would set British Columbia apart from other Canadian jurisdictions, which would continue to use Form 45-106F1 Report of Exempt Distribution, effectively requiring an issuer or underwriter to file a separate form in British Columbia for exempt distributions that take place in BC and one or more other jurisdictions of Canada. The BCSC is inviting comments on these proposed amendments until November 9, 2010.