OSC releases tips for filing reports of exempt distribution

June 21, 2012

The OSC today released a notice providing guidance for issuers and advisors preparing and filing reports of exempt distribution under NI 45-106 Prospectus and Registration Exemptions. Among other things, the notice reminds filers to identify the correct prospectus exemption relied on for the distribution in Ontario (and specifically notes that certain exemptions, like the family, friends and business associates exemption, are not available in the province) and states that an explanation should be provided if the purchase price for the securities distributed is $0. As we discussed in April, CSA staff recently released a notice highlighting issues identified in reports of exempt distributions and providing guidance relevant to the preparation of the form.

The OSC also announced that an electronic version of Form 45-106F1 Report of Exempt Distribution will now be available on its website. The form, which is required in respect of distributions made in reliance on certain specified prospectus exemptions, can now be filled out and submitted online.

For more information, see Staff Notice 45-708 and Staff Notice 45-709.

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