The OSC introduces new measures to support start-ups and innovation, enhancing access to capital while ensuring investor protection
The Ontario Securities Commission (OSC) has announced a series of initiatives to support capital-raising for early-stage Ontario businesses through the OSC TestLab program.
The OSC TestLab evaluates capital market innovations and new approaches to regulation in Ontario's capital markets by using testing methods.
Grant Vingoe, chief executive officer of the OSC, emphasized the vital role of new and growing businesses in the economy.
“New and growing businesses play an essential role in our economy, contributing to job creation and driving productivity gains through innovation and competition,” he said.
Vingoe noted that these initiatives align with the OSC's strategic plan, demonstrating a commitment to fostering growth and innovation in Ontario's capital markets while ensuring investor protection.
The initiatives introduced are time-limited and aim to balance enhanced access to early-stage capital with the maintenance of investor protections.
They include an extension of the Self-Certified Investor Prospectus Exemption, dealer registration exemptions for early-stage businesses and not-for-profit angel investor groups and streamlined reporting of distributions by early-stage businesses.
Leslie Byberg, executive vice president, Strategic Regulation at the OSC, stated that the OSC TestLab initiatives would provide valuable insights to support finance access across all stages of business growth.
“The data and information collected will help inform future policymaking, including promoting access to capital for early-stage businesses in Ontario while also ensuring investor protections,” Byberg explained.
The OSC plans to collect information to evaluate these initiatives effectively and has invited feedback from businesses, investors, and other key stakeholders involved in the early-stage capital-raising ecosystem.
