--- title: Summary of Key Canadian Securities Exemptions description: "This article provides an overview of three important securities exemptions in Canada: the NI 45-110 crowdfunding exemption, the NI 45-106 offering memorandum exemption, and the NI 45-106 accredited investor exemption." --- [Skip to content](https://learning.addyinvest.com/exemption-types#main-content) English Show submenu for translations ![addy logo.png\]](https://learning.addyinvest.com/hs-fs/hubfs/logos%20-%20addy/addy%20logo.png?height=40&name=addy%20logo.png) Open main navigation Close main navigation - English Show submenu for translations - [Go to addyinvest.ca](https://addyinvest.ca/) [Go to addyinvest.ca](https://addyinvest.ca/?hsLang=en) Hello 👋 How can we help you? - There are no suggestions because the search field is empty. 1. [addy Help Centre](https://learning.addyinvest.com/?hsLang=en) 2. [Information for Issuers](https://learning.addyinvest.com/information-for-issuers?hsLang=en) 3. [Public Issuance](https://learning.addyinvest.com/information-for-issuers?hsLang=en#public-issuance) # Summary of Key Canadian Securities Exemptions ## This article provides an overview of three important securities exemptions in Canada: the NI 45-110 crowdfunding exemption, the NI 45-106 offering memorandum exemption, and the NI 45-106 accredited investor exemption. **The below is not legal advice. Choose the appropriate exemption type for your issuance in consultation with legal counsel.** #### **NI 45-110 Crowdfunding Exemption** The NI 45-110 crowdfunding exemption allows businesses, particularly startups and small enterprises, to raise capital from the public without having to file a prospectus. Key requirements include: - **Issuer Limits**: The issuer can raise up to **$1.5 million** in a 12-month period. - **Investor Limits**: - Non-accredited investors can invest up to **$2,500 per distribution** (or **$10,000 if advised by a registered dealer**). - Accredited investors and permitted clients have no limits. - **Use of Funding Portals**: Funds must be raised through a registered crowdfunding portal. - **Offering Document**: Issuers must provide an offering document with prescribed disclosure. - **Resale Restrictions**: Securities are subject to a hold period, typically **four months**. #### **NI 45-106 Offering Memorandum Exemption** The offering memorandum (OM) exemption under NI 45-106 allows companies to raise capital from a broad range of investors, provided they issue an offering memorandum that meets regulatory standards. Key requirements include: - **Issuer Eligibility**: Available to non-reporting and reporting issuers, except investment funds. - **Investor Limits**: - Non-eligible investors (those with low income and assets) can invest up to **$10,000 per year**. - Eligible investors (meeting income or asset thresholds) can invest up to **$30,000 per year** (or **$100,000 if advised by a registered dealer**). - **Disclosure Requirements**: A prescribed offering memorandum must be provided to investors, including financial statements. - **Resale Restrictions**: Securities are subject to resale restrictions under **section 2.5 of NI 45-102**. #### **NI 45-106 Accredited Investor Exemption** The accredited investor (AI) exemption allows issuers to sell securities to qualified investors without providing a prospectus. Key requirements include: - **Investor Eligibility**: Investors must meet one of the following financial thresholds: - **Individuals**: - Net income of **$200,000** (or **$300,000 with a spouse**) in the past two years with a reasonable expectation of maintaining that income. - Net financial assets exceeding **$1 million** (excluding primary residence). - Net assets of at least **$5 million**. - **Institutions**: Banks, credit unions, pension funds, and certain corporations qualify. - **No Investment Limits**: Accredited investors can invest without restrictions. - **Limited Disclosure Requirements**: No mandatory offering memorandum or prospectus, though investors may conduct their own due diligence. - **Resale Restrictions**: Subject to standard private placement hold periods. #### **Conclusion** These exemptions under NI 45-110 and NI 45-106 provide businesses with flexible methods to raise capital while ensuring investor protection. 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