TORONTO, June 20,
2024 /CNW/ - The Ontario Securities Commission (OSC),
the Autorité des marchés financiers (AMF), the B.C. Securities
Commission (BCSC), Financial and Consumer Affairs Authority of
Saskatchewan (FCAA), the Alberta
Securities Commission (ASC) and the Nova Scotia Securities
Commission (NSSC) today announced an initiative intended to support
capital-raising by early-stage businesses by allowing exempt market
dealers (EMDs) to participate as selling group members in
prospectus offerings.
EMDs play an important role in assisting start-ups and small to
medium-sized businesses raise capital by distributing those
businesses' securities under prospectus requirement exemptions.
However, as the businesses grow and seek financing through
prospectus offerings, EMDs are unable to participate in those
prospectus offerings due to restrictions on their permitted
activities.
The time-limited exemption announced today enables EMDs to
maintain their relationships with those issuers and opens more
capital-raising opportunities for Canadian small businesses.
"Fostering the right conditions to enable businesses to thrive
is crucial to our collective economic success. The measures
announced today show how securities regulators are supporting the
growth and prosperity of our capital markets" said Grant Vingoe, CEO of the OSC.
"We are pleased that Ontario,
Quebec, British Columbia, Saskatchewan, Alberta and Nova
Scotia are working together to put these measures in place
and are finding ways to harmonize regulation in support of Canadian
businesses" said Stan Magidson, CSA
Chair and Chair and CEO of the ASC.
Enabling EMDs to participate as selling group members provides
another route for raising capital for growing businesses within
these provinces. Investment dealers will remain involved in these
offerings, including by acting as underwriter and signing the
underwriter certificate to the prospectus.
The measures announced today follow work carried out by the OSC
in response to the Ontario Capital Markets Modernization Taskforce
2021 report, as well as work undertaken by the other
jurisdictions.
The securities regulatory authority in New Brunswick anticipates publishing a similar
local blanket order in the upcoming weeks.
The CSA, the council of securities regulators of Canada's provinces and territories,
coordinates and harmonizes regulation for the Canadian capital
markets.
For media inquiries, please contact:
Ilana Kelemen
Canadian Securities Administrators
media@acvm-csa.ca
Julia Mackenzie
Ontario Securities Commission
media_inquiries@osc.gov.on.ca
For investor inquiries, please contact your local
securities regulator.
SOURCE Canadian Securities Administrators