The Ontario Securities Commission (OSC)’s recent consultation on crowdfunding options received “favourable comments” reports law firm Osler Hoskin & Harcourt. Osler noted 100 responses to the OSC, most of which supported its crowdfunding exemption proposal, though some had concerns about investor-protection issues. With respect to crowdfunding’s role in small business financing, feedback identified a “gap” in the $1 million to $2 million range that could be addressed, though there were also warnings about “difficult governance structures” that might result.
REPORT
On March 8, 2013, the Ontario Securities Commission (OSC) closed the comment period on its Staff Consultation Paper 45-710: Considerations for New Capital Raising Prospectus Exemptions (the Consultation Paper), which sought input from stakeholders on proposed amendments to the current legislation regarding prospectus exemptions. The Consultation Paper forms part of the OSC’s review of the rules regulating the distribution of securities in the exempt market. Included in the Consultation Paper were considerations for a prospectus exemption to permit crowdfunding.
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