IIAC SUPPORTS OSC’S LAUNCH OF SELF-CERTIFIED INVESTOR PROSPECTUS EXEMPTION PILOT … AND ENCOURAGES GOING FARTHER ….
On October 25, 2022 the Ontario Securities Commission (OSC) announced an 18-month pilot prospectus exemption with comes into effect on October 25, 2022, and remains in effect until the earlier of April 25, 2024, unless extended. The total acquisition cost of all securities acquired by a Self-Certified Investor, may not exceed $30,000 in a given year. The exemption is open to investors who meet certain educational requirements listed here.
The exemption is also open to individuals who “have management, policy-making, engineering, product or other relevant operational experience at a business that operates in the same industry or sector as the issuer and who, as a result of this experience, are able to adequately assess and understand the risk of investment in the issuer”. The IIAC encourages the OSC to expand the exemption further to recognize that skills achieved through business experience are transferable to other industries and sectors.
In addition, as the OSC has recognized that these individuals have the business knowledge, through their education or experience, to make an informed investment decision, the IIAC also encourages the OSC to reconsider whether a limit on acquisition cost is necessary.