The exempt market debate rages on in Ontario

Canada currently finds itself in a very unique situation with regards to securities laws and crowdfunding. Right now, "anyone wishing to raise capital must go through the cost of filing a prospectus or get an exemption, and any online portal used to raise equity must be registered as an investment dealer or advisor." Each province has different rules with regards to the exemption as there is no national securities regulator, like the SEC in the USA, so individual provinces craft their own financial regulation laws and procedures.

Ontario is currently in the position of being the only province that does not have an OM (offering memorandum) exemption for companies to raise capital. This fact has sparked a great deal of debate and lobbying to obtain such an exemption, but has been met with opposition from the OSC (Ontario Securities Commission) as they have been reluctant to pass such a law.

Click here to read an excellent article analyzing this issue