TORONTO, June 7, 2012 /CNW/ - The Ontario Securities Commission (OSC)
announced today that it is broadening the scope of its exempt market
review as a result of stakeholder feedback. The expanded review will
consider whether the OSC should introduce new prospectus exemptions
that may assist capital raising for business enterprises, while
protecting the interests of investors.
"Given the importance of the exempt market, we are broadening the scope
of our review in order to strike the right balance between investor
protection and efficient capital raising for businesses in Ontario,"
said Howard Wetston, Q.C., Chair and CEO of the OSC.
As part of its initial review, the OSC invited members of the public to
attend four consultation sessions in February 2012, to share their
views on whether changes to the $150,000 minimum amount and accredited
investor prospectus exemptions were appropriate. The OSC also
requested input from certain of its advisory committees and industry
stakeholders. In addition, 108 written comment letters were received.
Based on the feedback, the following themes were determined as meriting
Regulatory approach given the diversity of the exempt market segments;
Access to the exempt market for both issuers and investors and whether
participation should be broadened.
In broadening this review, the OSC recognizes the significance of
Ontario's exempt market to investors and businesses. The total amount
of capital raised through exempt distributions reported to the OSC in
2011 was approximately $142.9 billion, 60 per cent of which was raised
As part of the next phase of its review, the OSC will publish a second
consultation note, seek further public feedback through additional
consultation sessions and consider the experience of other CSA and
international jurisdictions. In conducting its broadened review, the
OSC will work with staff in other CSA jurisdictions.
The OSC also plans to establish an ad hoc advisory committee, which will
inform staff on possible regulatory approaches to the exempt market.
Information on the application process will be announced shortly.
OSC Staff Notice 45-707 published today can be found on the OSC's
website at www.osc.gov.on.ca. The Notice provides further information on the feedback received from
the OSC public consultation sessions and written comment letters.
SOURCE Ontario Securities Commission
For further information:
For Media Inquiries:
Manager, Public Affairs
Media Relations Specialist
Follow us on Twitter: OSC_News
For Investor Inquiries:
OSC Contact Centre
1-877-785-1555 (Toll Free)