Canadian Securities Administrators implement blanket orders easing IPO disclosure rules and expanding capital-raising exemptions

The Canadian Securities Administrators (CSA) have introduced coordinated blanket orders intended to reduce regulatory friction for companies pursuing or maintaining Canadian public listings and to provide additional flexibility for raising capital in Canada. The package eases certain prospectus and disclosure requirements, creates a prospectus exemption for some post-IPO financings, and adjusts limits under the offering memorandum exemption in select jurisdictions. The prospectus and disclosure blanket order expands to all companies the existing exemption from providing audited financial statements for the third most recently completed financial year in connection with initial public offerings and other transactions. A separate blanket order provides a prospectus exemption, subject to conditions, for companies that will be going or have recently gone public in Canada through an underwritten IPO, enabling additional capital raising following the IPO. In Alberta, New Brunswick, Nova Scotia, Ontario, Québec and Saskatchewan, a third blanket order increases the investment limit in the offering memorandum exemption for certain eligible investors to allow reinvestment of proceeds within a 12-month period, subject to terms and conditions. The measures take effect on April 17, 2025, with any expiry dates set out in the relevant blanket orders. The CSA also invited feedback via firms’ principal regulators and indicated it is considering further actions to support Canadian capital markets.