PCMA: What are your top priorities as Chair of the FCNB?
I’d like to continue the work of my predecessor by providing
leadership in securities regulation in Atlantic Canada and being a
strong advocate for the region nationally. We’ll do this by continuing
to improve our local systems and procedures, by updating our
regulations and consulting with our stakeholders.
PCMA: What are the key issues/initiatives the Canadian
Securities Administrators (CSA) is working on?
Well there are several:
FCNB and the CSA have published proposals for cro wdfunding.
Each one of these proposals has been designed for issuers who
are at different stages of their development. We consulted with
our stakeholders and we are reviewing the considerable feedback
that was received.
2. Capital Raising Exemptions:
There are a series of significant initiatives related to
accredited investors and minimum amount exemptions that FCNB
and the CSA have been working on. The items proposed in the
comment period include requiring certain accredited investors to
sign a risk acknowledgement form and restricting the minimum
amount exemption to non-individual investors. Our FCNB staff are
reviewing the feedback received during the consultation period.
Earlier this year, we published for comment proposed
amendments to the offering memorandum exemption, including
a proposal to place a cap on the aggregate amount that can be
sold to individual investors. We are now reviewing the comments
received during that comment period.
3. CRM 2
Slightly more than a year ago, the CSA finalized the second
phase of reforms known as Client Relationship Model (CRM 2),
the aim is to design and reshape regulation in the retail investment
business. The purpose of CRM 2 is to ensure that clients of all
registrants receive clear and complete disclosure of all charges and
registrant compensation associated with the investment products
and services they receive, and meaningful reporting on how their
investments perform. The CSA has provided a transition period of
three years for CRM 2 and for the corresponding requirements for
dealers and advisers.
PCMA: Does New Brunswick have a unique view of Capital
In my prior role I questioned whether a Securities Commission
should be involved in supporting capital formation activities. In my
current role, I have had the opportunity to see first-hand the value
our organization is able to bring through our constant review of
New Brunswick’s capital market issues. There is a need for raising
awareness and capital market education is a logical counterpart
to our investor education initiatives. Taking information and
educating key stakeholders on the issues, and then challenging
New Brunswickers to find solutions to the challenges identified
has been a successful model in our jurisdiction.
Mentorship is a good example of this. Mentorship is an
idea everyone can, and should, get behind. It’s particularly
important today because we are seeing a cultural shift in New
Brunswick where entrepreneurship is taking centre stage. There
is a demand by entrepreneurs for mentorship, but there was no
formal mentorship network to train mentors and assist in matching
them with entrepreneurs. It was time that the conversation took
place about how we increase the pool of mentors available to
entrepreneurs to assist entrepreneurs with their growth strategies.
I am encouraged that New Brunswick now has a group of
dedicated stakeholders working on “Mentra” a mentorship model
to strengthen the opportunities in the province.
PCMA: How does New Brunswick tackle new Capital Market
FCNB tackles capital market issues on multiple fronts. We
host events like the recent one on mentorship under our “Fullsail”
banner and under the “Learning the Ropes” banner we provide
education sessions throughout the province. These sessions are
on capital market issues, such as raising capital, the exempt market
and understanding and preparing an offering memorandum.
FCNB publishes an annual Capital Markets Report which
explores the funding New Brunswick organizations have attracted.
It also publishes a capital markets newsletter, brochures, webinars,
and videos that are all shared the website.
To learn more about our FCNB initiatives please visit our
website at: http://www.fcnb.ca/Accessing-Capital.html
PCMA: Lastly – can you tell us about the recent announcement
regarding New Brunswick and the Cooperative Capital
Markets Regulator (CCMR)?
The government of New Brunswick is fully committed to
the CCMR, and FCNB staff is engaged on various committees
supporting this initiative. New Brunswick based staff from the
FCNB have much to offer a national regulator including our
language skills, our unique perspective of the exempt market and
capital formation, and the practical experience we have gained
through our strong relationship with our stakeholders.