The exemption raised eight times more capital - now regulators want it locked in for good
Canadian securities regulators want to make permanent the higher limits that let public companies raise up to $50 million without a prospectus.
The Canadian Securities Administrators said on July 23, 2026 that it is seeking to codify increases to the amount qualified listed issuers can raise without a prospectus, pointing to strong uptake since the change took hold. For the advisors, fund managers and wealth teams that follow Canadian public companies, the move signals that a faster, cheaper financing route is likely here to stay.
The regulator introduced the listed issuer financing exemption, known as LIFE, in November 2022. It gives eligible Canadian exchange-listed issuers that have kept up with their required disclosure filings a more efficient way to raise capital, skipping the prospectus a public offering would normally demand.
The proposed amendments would mainly codify a 2025 blanket order that lifted the ceiling. Under that order, the maximum a company can raise climbed from $10 million to $25 million - or up to $50 million for larger companies - over a 12-month period, subject to conditions. The CSA said the amendments would also streamline other conditions of the exemption, responding to feedback from certain market participants.
The figures behind the proposal are what stand out. In its first year, the 2025 blanket order facilitated $3.7 billion in capital raised, a pace the CSA described as eight times higher than what had occurred under the original, lower limits.
"LIFE shows the CSA's commitment to innovating to support the competitiveness of Canada's capital markets, while protecting investors," said Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission. He added that the exemption, especially after the limit was raised, "has succeeded beyond our most optimistic expectations," with public companies "eagerly taking advantage of it, to the benefit of their shareholders and the Canadian economy."
The changes would apply to National Instrument 45-106 Prospectus Exemptions, along with changes to Companion Policy 45-106P. The CSA opened a 90-day comment period that closes October 21, 2026, and is encouraging stakeholders to submit comments using the method set out in the notice.
The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the country's capital markets.
The full text of the CSA notice on National Instrument 45-106 Prospectus Exemptions is available on CSA members' websites.
