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?