Christopher Charlesworth, CEO and Co-founder of HiveWire, Joins National Crowdfunding Association of Canada’s Advisory Board
March 24th, 2017
FCAA - Financial and Consumer Affairs Authority | October 7, 2013
Maintaining an open dialogue with all stakeholders and the public is important to our goal of promoting strong investor protection while fostering confidence in Saskatchewan’s capital markets.
Thank you in advance for your comments.
You can mail or email comments as Word documents or PDFs to:
|Financial and Consumer Affairs Authority|
|Securities Division - Saskatchewan Equity Crowdfunding Exemption|
|Suite 601 - 1919 Saskatchewan Drive|
|Regina SK S4P 1C2|
You may have heard of crowdfunding as a way for small businesses or creative projects to raise funds online from the public. Traditional crowdfunding usually raises money through donations or the pre-selling of products.
Equity crowdfunding is slightly different in that instead of giving a donation or pre-purchasing a product, individuals are investing in a company, product, or service. Businesses sell securities like shares, limited partnership units and promissory notes – investors buy a stake in a small business or start-up.
The current rules for selling securities like shares, limited partnership units and promissory notes are believed to be expensive, complicated and time consuming for small businesses or start-ups.
We believe the Saskatchewan Equity Crowdfunding Exemption will help small businesses and start-ups raise money, while still protecting investors by, among other things, limiting the amount of money individual investors can lose. FCAA also believes this is a unique opportunity for people who are new to investing to gain some experience.
The exemption is designed to allow a business to raise a defined amount of money in an efficient and cost effective way. The exemption will also limit the amount individuals can invest in the offering, which should limit the potential loss to individual investors if the offering is not successful.
The following documents are published for comment:
A guide for issuers, investors and portals will be published for comment shortly.