The Ontario Securities Commission (OSC) is looking for feedback on its proposals to streamline capital raising activity outside of Canada.
The (OSC) on Monday published a proposed rule and companion policy for a 90-day comment period, which closes on Sept. 28.
“The proposal and exemptions will provide Ontario participants with greater certainty in their cross-border activities, particularly regarding capital raising,” said Huston Loke, director, corporate finance, in a statement announcing the proposal.
The OSC’s approach to distributions outside Canada has evolved over time, the statement notes, as has case law on provincial jurisdiction over activities outside the province. The proposal would replace existing OSC guidance, to bring it in line with the current OSC staff practice.
“The proposed rule would generally provide exemptions from prospectus requirements for distributions of securities outside of Canada and only restrict resale to individuals or companies in Canada in limited circumstances,” the OSC statement says.
It “would also provide an exemption from the dealer and underwriter registration requirement in respect of a distribution of securities to individuals or companies outside of Canada, subject to certain conditions, the statement adds.
Issuers relying on most of the exemptions will be required to file a report of the exempt distribution through the OSC’s Electronic Filing Portal, according to the statement.
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