OSC adopts rule for distributions outside Canada

The OSC has adopted a rule to bring greater certainty to cross-border activities in Ontario.

The rule provides explicit exemptions that preserve current cross-border practices, and responds to the challenges issuers and intermediaries face in determining whether a prospectus must be filed or not for securities distribution to investors outside Canada, the regulatory body said Thursday in a release.

OSC Rule 72-503—Distributions outside Canada—including Form 72-503F Report of distributions outside Canada, and the rule’s companion policy—was adopted Thursday. A consequential amendment to OSC Rule 11-501—Electronic delivery of documents to the Ontario Securities Commission was also adopted. They have been delivered to the finance minister for approval, and are expected to come into force on March 31, 2018, the release said.

“This rule adoption provides greater certainty to Ontario market participants for their cross-border activities,” said Huston Loke, OSC director of corporate finance, in the release.

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