Cross-border crowdfunding just got a bit easier for investors in Alberta and Saskatchewan, thanks to a couple of regulatory tweaks announced Tuesday.
To facilitate capital raising across the Alberta-Saskatchewan border, the Financial and Consumer Affairs Authority of Saskatchewan (FCAA) has revised its start-up crowdfunding exemption.
For its part, the Alberta Securities Commission has clarified how these sorts of financings will work under its crowdfunding companion policy.
“This change will enhance capital raising opportunities for businesses in Saskatchewan and Alberta and investment opportunities for investors in those provinces. Given the geographical proximity, and similarities in industries, it makes sense for us to coordinate our efforts to facilitate cross-border financings with our neighbouring provinces,” says Roger Sobotkiewicz, CEO of the FCAA, in a statement.
Differences remain in the requirements for each jurisdiction, the regulators caution, and startups that are seeking to rely on the exemptions in both provinces must comply with the requirements of both jurisdictions.
“One significant difference between the two exemptions is that to raise money through a crowdfunding portal in Alberta, businesses must use a registered dealer. In Saskatchewan businesses must use an online funding portal, which is not required to be operated by a registered dealer,” the ASC and FCAA say in their joint announcement.