The Ontario Securities Commission (OSC) seeks comment on a proposed new rule that would provide issuers with more certainty when they sell securities to investors outside Canada.

If the rule is adopted, issuers will be able to rely on four new exemptions that would eliminate the need for a Canadian prospectus for certain types of distributions outside Canada.

The proposed new rule also provides an exemption from the dealer and underwriter registration requirements for foreign distributions, in certain circumstances. This exemption will make it easier for an issuer to engage the services of a foreign dealer to conduct offerings in other designated jurisdictions.

The IIAC is forming a working group to comment on the proposed rule, as it will have implications for capital raising activity outside of the country. If you are interested in participating on the working group, please contact Susan Copland.