The British Columbia Securities Commission (BCSC) on Thursday announced changes to its crowdfunding rules, raising investment limits and allowing companies to access investors in Alberta, in an effort to make the regime more useful.
The changes permit an increased investment, for investors that pass a suitability check by a registered dealer, of up to $5,000.
They also create an interface between the rules in B.C. and Alberta, which will allow B.C.-based companies to raise capital from investors across the provincial border.
The changes follow from an industry survey carried out earlier this year, which highlighted the issues of intra-provincial harmonization and investment limits as some of the biggest challenges facing firms that are looking to utilize crowdfunding, the BCSC says in its announcement.
"With these amendments, B.C. is harmonizing the crowdfunding regime and providing start-up and early stage issuers with access to more potential investors and more investment dollars," says Peter Brady, executive director of the BCSC, in a statement.
"Consultation with industry is very important to us, and we want to thank everyone who took the time to provide their input through the survey," adds Brady. "We value the insights of fintech businesses and stakeholders, and we believe that these crowdfunding amendments show our dedication to working with industry."
The BCSC says it intends to publish the results of the industry survey, and its other consultations with the fintech industry, later this year.