The Alberta Securities Commission (ASC) is easing the requirements for issuers to raise capital through its offering memorandum (OM) exemption.

The ASC announced Thursday that it has issued a blanket order that provides relief from certain financial statement-related requirements, in particular the requirement under the OM exemption for an audit on annual financial statements. Issuers have complained that this requirement is particularly costly, and onerous, for a start up.

Companies relying on the blanket order are subject to a number of conditions, including a $500,000 limit on how much money they can raise, and a limit of $2,000 that can be raised from each investor, over a 12-month period.

The regulator says that the blanket order, which will be in effect for two years, “is designed to help early stage and other small businesses raise funds while maintaining investor protection.”

It is also requesting comment on the OM exemption and the changes introduced through the blanket order. The comment period is open until February 20, 2013.

Earlier this month, the Ontario Securities Commission (OSC) also requested comment on some new exemption possibilities, including an OM exemption, and a crowdfunding exemption.

The ASC notes that a number of other Canadian regulators are also issuing similar blanket orders in their jurisdictions, too.