Crowdfunding Exemption MI 45-108

Crowdfunding Exemption

The MI 45-108 Crowdfunding Exemption will take effect January 25, 2016. The regime will enable start-ups and SMEs in their early-stages of development to raise capital online from a large number of investors through a single registered funding portal.

A limit on the total amount that can be raised will be imposed on issuers.  Also investors will be subject to two investment limits to help protect their exposure to highly risky investment.

Investment limits:

An investor that does not qualify as an accredited investor:

  • $2,500 per investment, and
  • In Ontario, $10,000 in total in a calendar year,

An accredited investor other than a permitted client:

  • $25,000 per investment, and
  • in Ontario, $50,000 in total in a calendar year,
  • in Ontario, no investment limits for a permitted client

Please view the Rule 45-108: Crowdfunding

Also refer to the related documents below:

Annex A1 MI Crowdfunding 45-108

Annex A2 Form 45-108F1 Crowdfunding Offering Document

Annex A3 Form 45-108F2 Risk Acknowledgement

Annex A5 Form 45-108F4 Notice of Specified Key Events

Annex A6 Form 45-108F5 Personal Information Form

The registration of the funding portal is a key investor protection measure as registration addresses such things as potential integrity concerns that may apply to funding portals and the persons operating them, as well as potential concerns relating to conflicts of interest and self-dealing.

For more information on portal registration requirements, please view the following links:

Registration Compliance Information Forms

Registration Frequent Forms

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