The Ontario Securities Commission is looking for additional comments on its proposal to overhaul exempt market regulation.

The OSC last published the rule on April 6. It has revised the rule yet again, as a result of OSC staff’s recommendations, comments received and further deliberations of the commission. It is out for another 30-day comment period.

Based on the comments received on the April draft, a new section has been added to create an exemption for private pooled funds, which have historically relied on the $150,000 exemption and rulings allowing for “top-up” sales to existing investors. This exemption will maintain the status quo.

It has been added to address the concerns received from many pooled fund managers, and to avoid the need for a significant number of exemptive relief applications from private pooled funds. This exemption will be available until staff determines the best approach to pooled fund management.

The OSC will shortly publish a request for comments from stakeholders on the nature and use of pooled funds. The commission wants to know whether these pooled funds should be subject to a unique regulatory regime.

Other changes in the revised draft include: the government incentive security exemption, as it relates to flow-through share offerings, has been included in the rule; assorted definitional changes have been made; as well as a variety of technical, non-material changes.

The commission notes that it received numerous comments recommending changes that weren’t incorporated in the new draft, such as for national harmonization.

The OSC responds, “A similar comment was received during the September comment period. The commission at that time advised that it recognizes the benefits that could be derived from a nationally harmonized exempt market regime and the commission will continue to pursue the possibility of developing such a regime. However, the commission is of the view that the goal of harmonization should not be permitted to adversely affect the timely implementation of the improvements to the Ontario capital markets contemplated by the proposed rule.” It rejected a string of alternative recommendations from commentators, offering different ways to operate the regime.

Comments on the last version of the rule came from a variety of financial firms, law firms and industry associations, including: Barclays Global Investors, Canaccord Capital, High Street Asset Management Inc., I.A. Michael Investment Counsel Ltd., Investment Counsel Association of Canada, the Investment Funds Institute of Canada, Stikeman Elliott, Northern Securities Inc., RBC Investments and TD Bank Financial Group.

Comments on the latest draft are due by August 13.