The Ontario Securities Commission (OSC) has formed an advisory committee to help consider the possible introduction of new prospectus exemptions, such as an exemption to allow firms to raise money via crowdfunding.

The OSC announced that it has created the new Exempt Market Advisory Committee (EMAC), which it announced plans for earlier in the summer. The new committee is to advise the regulator’s staff on potential new prospectus exemptions that are being considered as part of the OSC’s review of the exempt market.

The EMAC, which is being established for a one-year term and is to meet approximately four to six times over the course of the year, includes former commissioner Glorianne Stromberg, ex-OSC staffer Julia Dublin, and is chaired by Jo-Anne Matear, manager corporate finance at the OSC. It also includes Brian Koscak of the Exempt Market Dealers Association, Craig Skauge of the Western Exempt Market Association; along with representatives from dealers, including Darrin Hopkins of Macquarie Private Wealth Inc., and Jeff Kennedy of Cormark Securities Inc.; as well as issuers, lawyers, and others.

Back in June, the OSC announced the expansion of its existing review of the exempt market to consider whether new kinds of exemptions are needed to facilitate capital raising. At the time, it said it will consider the exemptions available in other jurisdictions, both within Canada (such as the offering memorandum and ‘friends and family’ exemptions) and in other countries (such as the recently-passed JOBS Act in the U.S., which introduces a new crowdfunding exemption).

In addition to setting up the advisory committee, it said that it will publish a consultation note concerning the exempt market regulatory regime; and, that it is planning further public consultations on the issue.

The rest of the Canadian Securities Administrators (CSA) are still considering possible changes to two of the main existing exemptions — the minimum amount exemption and the accredited investor exemption — as part of a consultation it began last year. Its conclusions are expected later this year.