OSC launches prospectus exemption pilot
27 October 2022 Canada
Image: lucky-photo
The Ontario Securities Commission (OSC) has announced a 18-month prospectus exemption pilot programme. The exemption offers increased investment opportunities to Ontario investors and provides a new capital source to Ontario-headquartered businesses.
The majority of capital raised from individuals under prospectus exemptions uses the accredited investor exemption, which many investors do not qualify for in spite of their proficiency.
With this exemption, investors must have educational or work experience that meets the OSC’s qualifying criteria, and complete a risk acknowledgement form. Using exempt distribution reports filed by issuers, the OSC will be able to monitor the exemption’s use and make decisions on future policies.
There will be a CAD$30,000 annual purchase limit which can be allocated to one or multiple issuers.
Grant Vingoe, CEO of the OSC, says: “This pilot recognises that there is a growing pool of sophisticated retail investors in Ontario, whose education and work experience have aptly prepared them to assess investment risks. It also reflects the reality that many Ontarians have multiple freelance roles during their careers in which they utilise and develop specialised skills that can support their investment activities.”
The majority of capital raised from individuals under prospectus exemptions uses the accredited investor exemption, which many investors do not qualify for in spite of their proficiency.
With this exemption, investors must have educational or work experience that meets the OSC’s qualifying criteria, and complete a risk acknowledgement form. Using exempt distribution reports filed by issuers, the OSC will be able to monitor the exemption’s use and make decisions on future policies.
There will be a CAD$30,000 annual purchase limit which can be allocated to one or multiple issuers.
Grant Vingoe, CEO of the OSC, says: “This pilot recognises that there is a growing pool of sophisticated retail investors in Ontario, whose education and work experience have aptly prepared them to assess investment risks. It also reflects the reality that many Ontarians have multiple freelance roles during their careers in which they utilise and develop specialised skills that can support their investment activities.”
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