Christopher Charlesworth, CEO and Co-founder of HiveWire, Joins National Crowdfunding Association of Canada’s Advisory Board
March 24th, 2017
Brian Koscak Blog | February 10, 2014
On January 15, 2014, the Rotman School of Management at the University of Toronto held a half day conference on Equity Crowdfunding in Canada. The conference was about the evolution of Equity Crowdfunding in the Canadian capital markets.
Here is the link to the event calendar where you can access the webinar. It is under “2014″ and the event is titled “Panel Discussion on Crowdfunding: An Evolution in the Canadian Capital Markets?”
Presentations were made by five individuals, each of which is very briefly discussed below (not in order of presentation).
Below is a picture of Douglas Ellenoff at the event. Doug is a Partner at Ellenoff Grossman & Schole LLP, who is a leading US Attorney and expert on equity Crowdfunding.
Doug provided an update on the US equity Crowdfunding rules and the US’s new approach to capital raising. Doug stated,
“… just because we have done something one way for the last 80 years does not mean it is the only way to do it …”
Doug was referring to the openness of US securities regulators in creating new ways of raising capital on the internet. Doug discussed different types of business models for funding portals including AngelList and Circle-Up in the US, ASSOB in Australia and Seedrs and Funding Circle in the UK. Doug distinguished between Title II and Title III portals under the JOBS Act and the need for investors to take responsibility to learn about how equity Crowdfunding works and that they can lose all their money.
Doug made an interesting comment about the US industry’s concern that Title III under the JOBS Act (the equity Crowdfunding law) will impose liability on portals for offerings posted on their web site. Under Title III, portals cannot ‘curate’ deals (i.e., pick ones they like) since that would be considered investment ‘advising’ under US securities law which portals are prohibitted from doing under the Title III. Instead US portals will be required to post all deals on their site based on ‘objective criteria’ except those that may involve fraud. US portals are concerned that imposing liability when forced to post all deals on their platform based on ‘objective criteria’, absent fraud, is unfair to portals notwithstanding the prohibition on advising.
Below is a picture of Jim Turner, the Vice Chair at the Ontario Securities Commission (the OSC) at the event. Mr. Turner is leading the OSC’s review of equity Crowdfunding.
Mr. Turner advised the audience that the OSC is currently reviewing a number of new ways to raise capital in Ontario (i.e., creating new prospectus exemptions) that includes an equity Crowdfunding framework. He stated the OSC expects to publish its equity Crowdfunding framework for public comment before the end of March 2014 for a 90 day comment period.
The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada crowdfunding hub providing education, advocacy and networking opportunities in the rapidly evolving crowdfunding industry. NCFA Canada is a community-based, membership-driven entity that was formed at the grass roots level to fill a national need in the market place. Join our growing network of industry stakeholders, fundraisers and investors. Increase your organization’s profile and gain access to a dynamic group of industry front runners. Learn more About Us | Prezi or contact us at firstname.lastname@example.org.