Welcome!

News Feed Item

BCSC Releases Report on B.C.'S Private Placement Market

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/20/14 -- The British Columbia Securities Commission has released a report on its Private Placement Review Program (PPRP), which monitors private companies that raise money in the private placement market. The PPRP has been active since 2010, prior to which there was no formal compliance review program of its kind in Canada.

The report indicates that, for the past several years, more money has been raised in B.C.'s private placement market than in the public markets - from 2010 to 2013, companies reported that they raised $45 billion in BC's private placement market versus $25 billion in the public market. The amount raised in BC's private placement market over this period rises to $79 billion when you include companies from outside of BC.

"The private placement market is critically important to the economic well-being of our province, and the BCSC has demonstrated leadership in regulating this market," said Brenda Leong, Chair and CEO of the BCSC. "In overseeing this market, we want to ensure that companies are playing by the rules, and that investors understand the risks and receive the information they need to make informed investment decisions. If we find evidence of misconduct, we will investigate and take appropriate enforcement action."

The PPRP monitors private placements, reviews selected companies, enforces the rules, and educates market participants. Some of the private placement securities sold to retail investors are high-risk and illiquid, and can result in significant losses.

Since 2010, 2,400 private companies filed exempt distribution reports with the BCSC. After performing a preliminary analysis of all of those reports, staff completed 284 in-depth reviews. Actions taken include:


--  15 files were referred to Enforcement, and 17 files were referred to
    other divisions in the BCSC and other securities regulators. Enforcement
    opened several cases, with one resulting in a BCSC hearing and findings
    of fraud, illegal distributions and breach of a cease trade order (CTO),
    and another ending in a settlement where the issuer agreed to pay
    $10,000 to the BCSC. Several cases are ongoing.

--  42 CTOs were issued. Of these, 21 have since been revoked because the
    deficiencies identified were addressed. The 21 companies that remain
    cease-traded have shown no progress in having the cease trade order
    revoked, were likely higher risk, and are no longer raising money from
    investors.

--  Eight companies completed rescission offers to their investors.

--  In April 2012, the BCSC participated with regulators in other Canadian
    jurisdictions to create and publish guidance around preparing and filing
    an offering memorandum, and preparing and filing exempt distribution
    reports.

Additionally, the PPRP has led the BCSC to develop two key initiatives to enhance the surveillance of B.C.'s private placement market, and help companies to stay compliant with capital raising rules:


--  In January 2014, the BCSC launched a private company risk model that
    supports staff's surveillance efforts. The risk model uses fielded data
    from all exempt distribution reports since January 2011 together with
    data from a variety of internal and external databases and analyzes each
    new exempt distribution report using a set of 38 risk indicators to
    identify high-risk companies. In the first three months, 50 cases were
    opened on unregistered finders, as well as five enforcement cases
    related to issuers.

--  In November 2013, BCSC staff launched the Capital Raising for Small
    Business program. The goal of this program is to reach entrepreneurs who
    are in the early stages of building a business, and who could
    unintentionally run afoul of capital raising rules. Staff developed a
    guide, made a number of presentations to small business groups, and
    produced a webinar and a video. During the year ended March 31, 2014,
    staff reached over 100 small businesses live, and thousands online.

Overall, the PPRP revealed that most companies intend to comply with the rules. However, staff found that companies have a poor understanding of the exemptions, do not keep adequate records of their private placements, and use professional advisors who do not have specialized knowledge of the securities industry and the private placement market.

The BCSC's monitoring and regulation of the private placement market through the PPRP, together with its continuing education and outreach efforts, should help to raise the level of understanding and compliance in the private placement market.

About the British Columbia Securities Commission (www.bcsc.bc.ca)

The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:


--  A securities market that is fair and warrants public confidence
--  A dynamic and competitive securities industry that provides investment
    opportunities and access to capital

Learn how to protect yourself and become a more informed investor at www.investright.org.

Contacts:
British Columbia Securities Commission
Media Contact:
Richard Gilhooley
Media Relations
604-899-6713

British Columbia Securities Commission
Public Inquiries
604-899-6854 or 1-800-373-6393 (toll free)
www.bcsc.bc.ca

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...