The Ontario Securities Commission has made an interim local order allowing for registration and prospectus exemptions for startup crowdfunding.
The order was issued in light of the challenges small businesses face in raising capital during the Covid-19 pandemic.
“These types of businesses have faced significant funding challenges as a result of the pandemic, and can benefit from having more unified regulatory requirements to expand their access to capital,” said Louis Morisset, chair of the Canadian Securities Administrators (CSA), in a release. Morisset is also president and CEO of the Autorité des marchés financiers.
The interim order, which takes effect on July 30, allows for exemptions that are substantially similar to the local exemptions in British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick and Nova Scota.
The CSA published for comment National Instrument 45-110 Start-Up Crowdfunding Registration and Prospectus Exemptions on Feb. 27, 2020, which will replace the local exemptions in the provinces mentioned above, including Ontario. The comment period ended on July 13, 2020.
The OSC interim order will remain in effect until the proposed national instrument is adopted or until 18 months from July 30, 2020.