OCE has weighed in on crowdfunding, a new way to solicit investments for innovative ideas and projects through social media that is gaining momentum in the United States and the UK.
Responding to a call for submission from the Ontario Securities Commission (OSC), OCE recommends allowing crowdfunding as long as a limit is imposed on how much can be invested and certain other basic consumer protections are put into place.
The deadline for public responses to the OSC’s December discussion paper on allowing an exemption to investment regulations for crowdfunding was Feb. 12.
Currently companies that raise money from the public must develop a formal prospectus for review by securities regulators or restrict sales to wealthy or “sophisticated” investors.