Canada: The OSC Examines Four New Capital Raising Prospectus Exemptions

Canada FlagOn December 14, 2012, the OSC released OSC Staff Consultation Paper 45-710 – Considerations for New Capital Raising Prospectus Exemptions (the “OSC Paper”)1 which examines four ideas for potential capital raising prospectus exemptions; crowdfunding, an offering memorandum exemption for Ontario, and exemptions for sophisticated investors and investors that have received advice from investment dealers. The OSC Paper makes it clear that these exemptions are still just “concept ideas” that may not be adopted in the form being considered, if at all.

In addition to examining these ideas, the OSC Paper examines many of the current prospectus exemptions in Canada with reference to available statistics and similar exemptions in the United Kingdom, the United States and Australia, and summarizes current initiatives and key issues relating to capital raising.

The OSC is seeking comments to a broad range of consultation questions relating to each of the four concept ideas as well as to proposed changes to the form and content of exempt distribution reports on Form 45-106F1 (“Exempt Distribution Reports”) discussed below. In addition, the OSC has included consultation questions relating to the private issuer, closely held issuer and family, friends and business associates prospectus exemptions. Comments are due by March 8, 2013.

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See OSC Exempt Market Review

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