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OSC Adopts Family, Friends and Business Associates Prospectus Exemption

  • Securities - OSC Image

Feb 19, 2015

On February 19, 2015, the Ontario Securities Commission published a family, friends and business associates prospectus exemption which is expected to provide a cost-effective way for issuers (other than investment funds) to raise capital from their networks of family, close personal friends and close business associates.

Subject to Ministerial approval, the exemption comes into effect on May 5, 2015.

The exemption is largely harmonized with an exemption that is currently available in other Canadian jurisdictions. It allows for the sale of securities by a selling security holder or an issuer to principals of the issuer as well as certain family members, close personal friends and close business associates. The exemption is based on investors having a sufficiently close relationship with a principal of the issuer to assess the capabilities and trustworthiness of the principals and access information about their investment.

Review the exemption.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.