TSXV President John McCoach

TSXV President John McCoach

Early in 2013, the BC Securities Commission moved to ban unlicensed finders from accepting fees as a result of introducing accredited investors to private placements. The BCSC concluded that approximately 1% of capital raised would be impacted by the decision. However on February 28, 2013, TSX Venture Exchange President John McCoach wrote in a letter to the BCSC, "Our review of a sample of associated Exchange filings indicated that 30-35% of these financings involved non-registrants actings as finders for at least a portion of the financing," urging the BCSC to reconsider its ruling.

A number of industry leaders including Glenn Ives, Chairman, Deloitte Canada, Rob Blanchard, President, Haywood Securities, Gord Medland, Chairman, Leede Financial, Joe Martin, Chairman, Cambridge House, and John Kaiser, Kaiser Research, have formed a committee to help defend the exemption. A petition is also in the works.

Source: Venture Funding Crisis Committee