With Canadian capital markets seeing an extended downturn,
securities regulators are under pressure to ensure regulations
protect investors without needlessly dampening market activity. To
this end, the Ontario Securities Commission (OSC) recently
announced a new self-certified investor prospectus exemption under
Ontario Instrument 45-507 Self-Certified Investor
Prospectus Exemption (Interim Class Order) (Ontario
Instrument 45-507), effective for an 18-month trial period from
October 25, 2022, to April 25, 2024.
Ontario Instrument 45-507 permits Ontario-based issuers to
distribute securities without a prospectus to investors who certify
that they have certain prescribed professional designations, levels
of education, or industry experience (self-certified investors).
The rationale is that self-certified investors should have the
requisite knowledge to make informed investment decisions, and
should therefore be allowed to invest in private offerings despite
not
