OSC Releases Tips For Filing Reports Of Exempt Distribution

The OSC today released a notice providing guidance for issuers and advisors preparing and filing reports of exempt distribution under NI 45-106 Prospectus and Registration Exemptions. Among other things, the notice reminds filers to identify the correct prospectus exemption relied on for the distribution in Ontario (and specifically notes that certain exemptions, like the family, friends and business associates exemption, are not available in the province) and states that an explanation should be provided if the purchase price for the securities distributed is $0. As we discussed in April, CSA staff recently released a notice highlighting issues identified in reports of exempt distributions and providing guidance relevant to the preparation of the form.