OSC launches self-certified investor prospectus exemption pilot

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Oct 25, 2022

On October 25, 2022, the Ontario Securities Commission (OSC) announced an 18-month pilot that provides a prospectus exemption that gives Ontario investors with qualifying education or work experience access to increased investment opportunities. The exemption also gives businesses headquartered in Ontario access to a new source of capital.

In Ontario, most of the capital raised from individuals under prospectus exemptions is raised using the accredited investor exemption. While many investors have the proficiency, through education or relevant industry experience, to understand the risks and rewards of investing without a prospectus, some do not meet the accredited investor financial criteria. Additionally, they may not meet the criteria for other prospectus exemptions, such as the employee prospectus exemption.

To make use of this prospectus exemption, investors must certify that they have met at least one qualifying criteria and review and complete a risk acknowledgment form confirming they understand the risks of investing. Investors will also be subject to a $30,000 annual limit on all purchases and can choose to allocate that amount to one or multiple issuers. 

Issuers must report the use of the self-certified prospectus exemption by filing reports of exempt distribution. The OSC will use this data to monitor the use of the prospectus exemption and to inform future policymaking.

Review the press release and prospectus exemption on the OSC's website.

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