The Ontario Securities Commission (OSC) is promising a slate of new prospectus exemptions in the first quarter of next year — including a possible new exemption for existing shareholders, as various other Canadian regulators recently proposed.

The OSC said Wednesday that it is planning to propose four new exemptions in the new year — a crowdfunding exemption; an offering memorandum (OM) exemption; a family, friends and business associates exemption; and, an exemption for existing security holders, similar to the one recently proposed by much of the rest of the Canadian Securities Administrators (CSA).

Back in August, the OSC indicated that it is continuing to work on several new exemption possibilities — including exemptions to allow crowdfunding, and to utilize OMs — in the wake of consultations to examine ways to reform the exempt market regime and bolster capital raising for small firms.

Since then, most of the CSA has proposed another new exemption that would allow venture firms to raise additional capital from existing shareholders without issuing a prospectus. (See Investment Executive, CSA proposes new prospectus exemption, November 21, 2013).

On Wednesday, the OSC indicated that it will be proposing a similar exemption too, although it says it’s considering allowing all firms to do that, not just venture companies.

The OSC says that it supports the CSA proposal and will consider the comments that are submitted on that proposal as it develops its own proposed exemption for existing shareholders, “with the goal of substantial harmonization.”

“As part of the OSC’s review, it will consider whether such an exemption should be available to issuers listed on other exchanges,” it notes.

The OSC says that its proposals will go out for public comment in the first quarter of 2014 for a 90-day comment period. In the meantime, it asks to be included in comments on the CSA proposal for an existing shareholder exemption.

The commission stresses that the objective of this work is to facilitate capital raising for start-ups, and small and medium-sized enterprises, and to modernize Ontario’s exempt market regulatory regime.

“The OSC has a responsibility to consider whether our regulatory framework supports efficient capital formation and contributes to Ontario’s economic growth,” said Howard Wetston, chair and CEO of the OSC. “It is important that our continued work in this area promotes an innovative and competitive exempt market that facilitates capital raising while protecting investors.”