Crowdfunding

Crowdfunding in Nova Scotia

Traditionally crowdfunding involves a large number of people, the “crowd”, who provide funding to a project or business venture and receive products or services in return. Funding commonly takes place through a website. The Nova Scotia Securities Commission (the Commission) does not regulate this type of purchase or donation based crowdfunding. In May 2015, the Commission adopted new rules to allow equity or debt crowdfunding in Nova Scotia.

Video: Start-up Crowdfunding in Canada from the BCSC

List of Start-up Crowdfunding Portals allowed to operate in Nova Scotia

Name	Website	Scheme
Canadragon Enterprise Equity Crowdfunding Interchange	www.ecfex.ca	Start-up crowdfunding registration exemption

GoTroo	www.gotroo.com/en/	Start-up crowdfunding registration exemption
FrontFundr	www.frontfundr.com/	Registered dealer
RealStarter	www.realstarter.ca	Start-up crowdfunding registration exemption
Stockosaurus Crowdfunding Inc.	www.stockosaurus.ca	Start-up crowdfunding registration exemption
Vested Technology Corp.	www.vested.ca	Start-up crowdfunding registration exemption

Funding portals can operate under one of these two schemes:

Registered dealer: This type of portal is operated by a dealer registered with the NSSC. Its activities are governed by legislation and the applicable rules and regulations. A dealer that operates a portal has the obligation to ensure that the investment products it offers suit the client's needs and financial profile. For more information about a registered dealer that operates a portal, please see the CSA's National Registration Search to see if a dealer is registered.
Start-up Crowdfunding Registration Exemption: This type of portal is not registered with the NSSC and has very limited obligations towards investors. It cannot provide any investment advice and does not have the obligation to ensure that the investment products it offers are suitable in light of the client's needs and financial profile. Please take caution before investing through one of these portals.

For further information or to submit completed forms email: nssc.Crowdfunding@novascotia.ca

Failure to file annual financial statements.
Failure to file interim financial statements.
Failure to file an annual or interim management’s discussion and analysis (MD&A) or an annual or interim management report of fund performance (MRFP).
Failure to file an Annual Information Form (AIF).
Failure to file a certification of annual or interim filings required by Multilateral Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings (MI 52-109).
Failure to file required proxy materials or a required information circular.
Failure to file an issuer profile supplement on the System for Electronic Disclosure by Insiders (SEDI).
Failure to file a material change report.
Failure to provide a written update after filing a confidential report of a material change.
Failure to file a business acquisition report.
Failure to file annual oil and gas disclosure prescribed by National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities (NI 51-101) or technical reports for a mineral project required under NI 43-101 Standards of Disclosure for Mineral Projects (NI 43-101).
Failure to file a mandatory news release.
Failure to file corporate governance disclosure as required by national Instrument 58-101 Disclosure of Corporate Governance Practices (NI 58-101).
Failure to file audit committee disclosure as required by Multilateral Instrument 52-110 Audit Committees (MI 52-110) or BC Instrument 52-509 Audit Committees.
Failure to include disclosure in an issuer’s MD&A relating to disclosure controls and procedures and their direct effectiveness that is referred to in a certificate filed under MI 52-109.
Financial statements of the reporting issuer, or the auditors’ report accompanying the financial statements, do not comply with the requirements of NI 51-102 Continuous Disclosure Obligations (NI 51-102), National Instrument 81-106 Investment Fund Continuous Disclosure (NI 81-106) or National Instrument 52-107 Acceptable Accounting Principles, Auditing Standards and Reporting Currency (NI 52-107).
The reporting issuer has acknowledged that its financial statements, or the auditors’ report accompanying the financial statements, may no longer be relied upon.
The reporting issuer’s AIF, MD&A, MRFP, information circular, or business acquisition reports do not contain information for each of the content items required by NI 51-102 or NI 81-106.
The reporting issuer’s technical disclosure or other reports do not comply with the disclosure requirements of NI 43-101 or 51-101.
Failure to pay a fee required by the Act or the regulations.
Failure to comply with any other requirement related to continuous disclosure.