November 25, 2016 Organization Securities

Montréal – The Autorité des marchés financiers (“AMF”) is holding a consultation on a draft Regulation respecting real estate prospectus and registration exemptions and the related Policy Statement.

The AMF is proposing this Regulation in response to the growing number of real estate projects in Québec, which has highlighted the need for a legal framework adapted to related distributions. Moreover, the recent amendments made to Regulation 45-106 respecting Prospectus Exemptions have restricted the scope of some exemptions related to real estate investment contracts.

The Regulation seeks to prescribe and simplify the framework governing certain real estate distributions by proposing, with conditions, a prospectus exemption in respect of the sale of real estate investment contracts specified in the Regulation. A real estate offering document must therefore be delivered to the subscriber, and certain disclosures are required under the Regulation.

As well, the Regulation proposes a prospectus and registration exemption in respect of the distribution of a security giving a right of exclusive use in an immovable. The related Policy Statement helps users understand how to interpret the Regulation and provides guidance on its future applications, in particular factors that may trigger the registration requirement in respect of the sale of real estate investment contracts.

The draft Regulation and the related Policy Statement are available on the AMF website.

Comments regarding this matter may be made in writing and sent to the AMF by December 24, 2016.

The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec’s financial sector.

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