On February 21, the Canadian Securities Administrators (CSA) issued Staff Notice 45-324, indicating that they are developing a national instrument with the same key features as the start-up, crowdfunding prospectus and registration exemption orders (Local Orders) that have been operating in British Columbia, Saskatchewan, Manitoba, Québec, New Brunswick and Nova Scotia (Participating Jurisdictions) since May 2015. CSA staff have indicated that the planned national instrument will incorporate the key features of the Local Orders that it will replace, along with some targeted amendments to improve harmonization and the effectiveness of crowdfunding as a capital-raising tool for start-ups and early stage businesses.

CSA staff anticipate that the planned national instrument will not be implemented by the time the existing Local Orders are set to expire on May 13, 2020. Accordingly, staff expect that the existing Local Orders will be extended to remain available for issuers and portals until the national instrument comes into effect. AUM Law will monitor developments in this area and update you when the planned national instrument is published for comment.