The debate over allowing equity-based crowdfunding is heating up in Canada’s largest province as the Ontario Securities Commission (OSC) is collecting letters from different groups either advocating for change or warning against it.
This week, a group protecting investor rights weighed in on the issue with a letter to the OSC that opposes crowdfunding. It says allowing it would put investors at higher risk of fraud, undermine investor confidence in markets, and will not result in businesses gaining more access to capital. The letter from the Foundation for Advancement of Investor Rights (FAIR) argues that the effort to regulate an equity-based crowdfunding market would require too many resources or else lead to investor harm. It challenges statement in support of crowdfunding made by proponents like Invest Crowdfunding Canada (ICC, a division of the Canadian Advanced Technology Alliance) or the Exempt Market Dealers Association (EMDA).
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