IIROC FAS Conference 2017
Peter Brady Executive Director British Columbia Securities Commission
Overview
BC Capital Markets Update
CRM2 Research Results
CSA Policy & Systems Initiatives
FinTech
Cooperative Capital Markets Regulator Update
Overview of Amounts Raised*
0.0
5.0
10.0
15.0
20.0
25.0
2014 2015 2016
In B
illio
ns
$ BC Companies and
IFs – Private Placement Market
BC Companies – Public Market
Non-BC Companies and IFs – Private Placement Market
BC IFs – Public Market
*Includes amounts raised by BC companies in BC and elsewhere in the public market and private placement market and by non-BC companies in BC private placement market.
For calendar years 2014, 2015, & 2016 (from BCSC data)
$4.0BPublic companies
$11.72B Non-BC Companies
$20.62B All companies
$9.34 BC companies
20.6B
Overview of Amount BC Companies Raised in Private Placement Market in 2016 in BC and Elsewhere
$4.0BPublic companies
$11.72B Non-BC Companies
$20.62B All companies
$9.34 BC companies
20.6B
$20.2B
BC Companies
$6.0B
Public Companies
$0.5B
TSX Companies
$1.8B
TSX-V Companies
$0.3B
CSE Companies
$14.2B
Private Companies
$3.4B Other Public Companies
For 2016 calendar year (from BCSC filings as of April 21, 2017)
Amount Raised by BC Private Companies* in Private Placement Market by Industry in BC and Elsewhere
*Private companies that exclude investment funds. **Includes paper & forest products, junior industry, oil & gas, etc.
For calendar years 2014, 2015, & 2016 (from BCSC filings as of April 21, 2017)
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2014 2015 2016
In M
illio
ns
$
Mortgage Investment Companies
Mining & Exploration
Tech & Bio Tech
Other**
Real Estate
Number of BC Private Companies* Raising Money and Amount Raised in BC Private Placement Market by Exemption
For calendar years 2014, 2015, & 2016 (from BCSC filings as of April 21, 2017)
*Includes large investment funds, other private funds based in BC, and other BC private companies. **Other exemptions include start-up crowdfunding, asset acquisition, shares for debt, distribution of securities outside BC, etc.
Number of Companies Amount Raised
0
50
100
150
200
250
2014 2015 2016
Offering Memorandum Accredited Investor Family, Friends, & Business Associates $150,000 Minimum Other***
0
2,000
4,000
6,000
8,000
10,000
12,000
2014 2015 2016
Nu
mb
er o
f C
om
pa
nie
s
In M
illio
ns
$
Amount Raised by BC Public Companies in Private Placement Market by Industry in BC and Elsewhere
For calendar years 2014, 2015, & 2016 (from BCSC filings as of April 21, 2017)
*Includes investments, finance, real estate, transportation, utilities, etc.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2014 2015 2016
Mining & Exploration
Oil & Gas
Tech & Bio-Tech
Other*
In M
illio
ns
$
Number of BC Public Companies Raising Money and Amount Raised in BC Private Placement Market* by Exemption
For calendar years 2014, 2015, & 2016 (from BCSC filings as of April 21, 2017)
*Includes only money raised in BC under BC exemptions. **Includes existing security holders, investment dealer, asset acquisition, shares for debt, etc.
Number of Companies Amount Raised
0
100
200
300
400
500
600
2014 2015 2016
0
100
200
300
400
500
600
700
2014 2015 2016
Nu
mb
er o
f C
om
pa
nie
s
Family, Friends, & Business Associates Accredited Investor Other** $150,000 Minimum Amount
In M
illio
ns
$
Public Financings on TSX-V by Dealer Location
For calendar years 2014, 2015, & 2016 (from TSX-V and IIROC data)
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
2014 2015 2016
0
5
10
15
20
25
30
35
2014 2015 2016
Dealer by Province
Alberta BC Ontario Quebec
Nu
mb
er o
f U
nd
erw
rite
rs
In B
illio
ns
$
Amount Raised by Dealer by Province
BCSC CRM2 Research Results
Longitudinal study
Unique
Less Confidence and Investment Knowledge
52%
Improved Fee Understanding
More Confidence and Investment Knowledge
11%
16%
25%
Took New Action
Never Received CRM2 Report Nov 2016 – June 2017*
0
30
60
90
Nov-16 Jun-17
Relationship with Advisor Communications with Advisor
0
30
60
90
Nov-16 Jun-17
% S
ati
sfie
d
% S
ati
sfie
d
*Results for those who do not recall receiving their CRM2 reports.
CSA CRM2/POS Research
5 year project
3-prong focus
Status of CSA Consultation Paper 33-404
IIROC at table
Topics under consideration
Best Interest Standard?
Status of CSA Consultation Paper 81-408
Purpose
Consultation process
Alternatives
National Filing Systems Rebuild Project
Scope of project
Benefits
Status of work
Timing
NSRP SEDAR
NRD
SEDI
NRS CTO
DL
DDS
BC EDER and ERA
ON EDER and ERA
FinTech
CSA Sandbox
Types of FinTech
Initial Coin Offerings
Not just startups
Cooperative Capital Markets Regulatory System Update
Support for government
Status
Questions?