On January 13 2016 the new Offering Memorandum (OM) Exemption was introduced in Ontario. Until now Ontario was the only province that did not have an OM exemption for raising capital privately.

Prior to the exemption, only accredited investors were allowed to invest in the exempt market. (Total net worth over $5-million, or $1-million of cash and securities, or earn $200,000 a year, $300,000 with a spouse).

Now, retail investors will be able to invest up to $10,000 into the private capital markets annually. Individuals earning at least $75,000 or $125,000 a household, or have net assets of $40,000 can invest up to $30,000 or $100,000 annually if they receive advice.

These new rules have been developed after more than three years of discussion between the regulators and interested parties. Jim Boyle, a Toronto-based securities lawyers stated that regulators have “spent time making the exempt market more robust, establishing compliance regimes…”

Investors in Ontario seeking alternative investments can now access private capital markets that were once available only to high-net-worth individuals.