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OSC – Access to Long-Term Assets through Investment Fund Product Structures
Letter Summary:
The Ontario Securities Commission (OSC) published a consultation paper aimed at improving retail investor access to illiquid investments through a framework proposal for a long-term asset investment fund product structure.
The consultation proposes the creation of a new investment fund category, the Ontario Long-Term Asset Fund (OLTF), which would allow Ontarians to invest in assets they may not traditionally have exposure to. These assets include venture capital, private debt and equity, and infrastructure and natural resource projects.
Overview of the Council’s Comments
The CAC suggested that the OSC would be well-served by growing information-gathering, oversight and familiarity with private asset markets to better inform policy proposals, and suggested that regulators reassess whether existing exemptions from information-gathering and securities oversight of managers of exempt-market funds invested in private equity, venture capital and other private assets remains appropriate, especially in light of U.S. regulatory developments, noting that improved market knowledge relating to private assets would enable more informed regulatory policy across multiple areas.