The United States Securities and Exchange Commission
("SEC") has recently adopted amendments to the accredited investor
standards in the rules under the Securities Act of 1933 ("U.S.
Securities Act") in order to conform to the requirements of
the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Effective February 27, 2012, the definition of "accredited
investor" in the rules under the U.S. Securities Act will
exclude the value of a person's primary residence for purposes
of determining whether the person qualifies as an "accredited
investor" on the basis of having a net worth in excess of US$1
million.
The accredited investor exemption in Canada may also be subject to
amendment in the near future. As discussed in a
previous post, the Canadian Securities Administrators
("CSA") are in the process of reviewing certain
prospectus exemptions, including the accredited investor exemption
and the $150,000 minimum amount exemption. In connection with the
CSA's review, the Ontario Securities Commission
("OSC") has announced three upcoming roundtable
discussions to obtain input from investors, issuers, registrants
and professional advisors as to whether any changes to the
prospectus exemptions may be appropriate. The roundtable
discussions will take place on February 2, February 8 and February
13, 2012.
About Fraser Milner Casgrain LLP (FMC)
FMC is one of Canada's leading business and litigation law firms with more than 500 lawyers in six full-service offices located in the country's key business centres. We focus on providing outstanding service and value to our clients, and we strive to excel as a workplace of choice for our people. Regardless of where you choose to do business in Canada, our strong team of professionals possess knowledge and expertise on regional, national and cross-border matters. FMC's well-earned reputation for consistently delivering the highest quality legal services and counsel to our clients is complemented by an ongoing commitment to diversity and inclusion to broaden our insight and perspective on our clients' needs. Visit: www.fmc-law.com
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