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The OSC estimates investors lost $2.1-million (U.S.) in the scheme.
The OSC estimates investors lost $2.1-million (U.S.) in the scheme.
(Peter Power/The Globe and Mail)

Looser financing rules could raise billions – at a cost

A proposal to loosen rules in Ontario for what is known as the “exempt market” could mean billions in new financing for small companies, proponents say. But critics warn the move could see more investors sucked into unsuitably risky businesses or frauds.

In the exempt market, companies can raise capital without using a prospectus, the detailed disclosure document that is normally considered required reading for anyone buying shares. Under Ontario’s current rules, investors in this riskier market must meet high thresholds for minimum income or assets.