December 14, 2012
OSC seeks comment on review of Capital-Raising Prospectus Exemptions
TORONTO---The Ontario Securities Commission (OSC) today published Consultation Paper 45-710 Considerations For New Capital Raising Prospectus Exemptions, which discusses concepts for new prospectus exemptions in Ontario. The objective is to facilitate capital raising in the exempt market, while continuing to deliver strong investor protection.
The Consultation Paper explores and describes four concept ideas on which the OSC is seeking feedback:
•an exemption to allow crowdfunding subject to limits for issuers and retail investors;
•an offering memorandum exemption;
•an exemption based on an investor's investment knowledge; and
•an exemption based on an investor receiving advice from a registrant.
"Given the importance of the exempt market to Ontario, this Consultation Paper is a vital step in soliciting meaningful feedback from stakeholders on concept ideas to appropriately address exempt market capital raising concerns and continue to deliver strong investor protection," said Howard Wetston, Q.C., Chair and CEO of the OSC.
In November 2011, the Canadian Securities Administrators (CSA) initiated a review of the accredited investor and minimum amount exemptions. In June 2012, the OSC expanded on the CSA's review, broadening the scope to consider whether new prospectus exemptions should be introduced that may assist capital raising for business enterprises, while protecting investors. The OSC continues to examine the accredited investor and minimum amount exemptions, along with the concept ideas presented in today's Consultation Paper.
During the comment period, the OSC plans to hold public consultation sessions, conduct investor research and solicit feedback from interested stakeholders. The comment period for this Consultation Paper closes February 12, 2013.