CSA OSC Investor Exemption Pilot


On Oct. 25, CSA OSC launched investor prospectus exemption pilot.


  • CSA OSC announced launch of self-certified investor prospectus exemption pilot.
  • 18-month pilot that provides prospectus exemption that gives Ontario investors with qualifying education or work experience access to increased investment opportunities.
  • Also gives businesses headquartered in Ontario access to a new source of capital.
  • Exemption
  • To make use of the prospectus exemption, investors must certify that they have met at least one qualifying criteria and review and complete a risk acknowledgment form.
  • Investors will also be subject to a $30,000 annual limit on all purchases.
  • Will have the ability to choose to allocate total amount to one or multiple issuers.
  • Issuers must report the use of exemption by filing reports of exempt distribution.
  • OSC will use this data to monitor use of exemption and to inform future policymaking.
  • Effectiveness
  • Comes into effect on Oct. 25, 2022, remains in effect until the earlier of Apr. 25, 2024 or effective date of amendment to NI 45-106 that addresses same subject matter.
  • Feb. 2023 CSA OSC Relief Extension
  • On Feb. 8, 2024, CSA OSC reported commission approval of OSC Rule 45-508.
  • Extended class relief issued Oct. 2022 by NI 45-507, Self-Certified investor prospectus exemption (Interim class order) (OSC class order) 18 months, to Oct. 25, 2025.
  • Delivered to minister of finance Feb. 7, if not rejected, comes into force Apr. 25, 2024.
  • Apr. 2024 CSA OSC Minister Approval
  • On Apr. 11, 2024, CSA OSC reported Minister of Finance approved the rule on Apr. 8.
  • Self-certified investor prospectus exemption rule has effective date of Apr. 25, 2024.

Regulators CSA; CSA OSC
Entity Types B/D; CNSM; IA
Reference Nt B.1.2, Bul. Vol. 47, Is 15, 4/11/2024; PR, RF 45-508, Nt. B.1.1, Bul. Vol 47 No. 6 p. 1101, 2/8/2024; PR, Nt 45-507, Form, 10/25/2022; Citation: *NI* 45-106, 45-507;
Functions Compliance; Financial; Legal; Operations; Record Retention; Reporting; Sales Practices
Countries Canada
Category
State
Products Fund Mgt; Issuance/IPO; Securities; Wealth Mgt
Regions Am
Rule Type Final
Rule Date 10/25/2022
Effective Date 4/25/2024
Rule Id 151634
Linked to N/A
Reg. Last Update 4/11/2024
Report Section International

Last substantive update on 04/16/2024