The PDAC submitted comments to the Ontario Securities Commission on the OSC Staff consultation paper 45-710 on considerations for new capital raising prospectus exemptions.
The PDAC strongly encourages the OSC to harmonize the Ontario prospectus exemptions with the prospectus exemptions available in the rest of Canada. Unfortunately, because the OSC did not harmonize its prospectus exemptions with the rest of Canada in 2005, many Ontario investors have been denied the opportunity to participate in exempt market offerings. More importantly, many Ontario issuers have opted to restrict their offerings to the Ontario-only exemptions, thereby limiting their options for raising capital.
The PDAC supports the OSC’s initiative with respect to implementing a “Crowdfunding” exemption in Ontario and encourages other CSA members to also adopt this exemption. We also encourage the OSC to harmonize its proposed OM exemption with the OM exemptions that currently exist in the rest of Canada. We encourage the OSC not to create a third “Ontario model” version of the OM exemption, as this will only add more confusion for investors, increase costs to issuers and increase compliance issues for the industry as a whole.
The PDAC supports the OSC’s goal of investor protection as well as any initiative that provides greater equality for investors with respect to access to exempt market securities and appreciates the opportunity to comment on these issues, on behalf of its membership.
For more details please see our submission Securities - OSC Consultation Paper 45-710 - PDAC Comments April 2 2013