Ontario (and QB, MN, NS, SK, NB) Multilateral Instrument 45-108 Crowdfunding became effective on January 25, 2016. The major requirements are the following:

1.    Head office of the issuer is located in Canada and a majority of directors of the issuer reside in Canada.

2.    The issuer provides the standard disclosure on website.

3.    Must use a registered funding portal.

4.    Investment limitation per investor:

1. For a non-accredited investor, $2,500 per distribution, and $10,000 for all distributions in same calendar year.
2. For an accredited investor, $25,000 per distribution, and $50,000 for all distributions in same calendar year.
3. For a permitted client (mainly non-individual investors), no limitation.

5.    The issuer cannot raise fund more than $1,500,000 within 12 months.

6.    The issuer has responsibility to make certain disclosure after distribution.