Canadian securities regulators eye rules on crowdfunding
Canada’s provincial securities regulators are looking to extend their jurisdiction to cover crowdfunding, the grass-roots form of fundraising being pursued by a growing number of start-ups and small ventures.
The move is part of a broader plan to revise rules around who is qualified to invest in a publicly-traded company without first seeing a prospectus.
Prospectus documents are designed to disclose the risks of buying into a company and protect vulnerable buyers. But some critics see them as onerous requirements that can hamper fund-raising for young enterprises.