Securities Law

BCN 2002/14 - Status of Multilateral Instrument 45-103 Capital Raising Exemptions [BCN - Rescinded]

Published Date: 2002-03-19
Effective Date: 2002-03-18

Multilateral Instrument 45-103 Capital Raising Exemptions is a joint initiative of the British Columbia Securities Commission and the Alberta Securities Commission.  The proposed rule is intended to increase access to capital and investment opportunities in BC and Alberta while providing appropriate investor protection. 

The ASC has announced that it has approved the adoption of MI 45-103 and related instruments effective March 30, 2002. 

We have targeted the same date for implementation of MI 45-103.  However, we are not certain that we will meet this target as we must obtain government consent before we can adopt MI 45-103 as a rule.

To address any concerns resulting from this uncertainty, we will be retaining the following exemptions for a transition period of six months from the date of implementation of MI 45-103:

a. the 50 purchaser exemption in sections 89(a) and 128(a) of the Securities Rules,
b. the $25,000 - sophisticated purchaser exemption in sections 89(b) and 128(b) of the Securities Rules,
c. the $25,000 - registrant consultation exemption in section 128(c) of the Securities Rules,
d. the friends and relatives exemption in sections 89(g) and 128(h) of the Securities Rules,
e. the private issuer exemption in sections 46(j) and 75(a) of the Securities Act,
f. the financial institutions exemption in sections 45(2)(2) and 74(2)(1) of the Securities Act, and
g. the $97,000 exemption in sections 45(2)(5) and 74(2)(4) of the Securities Act.

Following the six month transition period, the $97,000 exemption will remain available for a longer period in the form of a blanket order.

If you have any questions, please contact:

Leslie Rose
Senior Legal Counsel, Legal and Market Initiatives
British Columbia Securities Commission
Tel: (604) 899-6654
Fax: (604) 899-6814

March 18, 2002


Adrienne Salvail-Lopez

Ref: Multilateral Instrument 45-103 Capital Raising Exemptions

This Notice may refer to other documents. These documents can be found at the B.C. Securities Commission public website at in the Commission Documents database or the Historical Documents database.