Generally, securities offered to the public in Ontario must be issued with a prospectus, but there are exceptions. These exemptions are called prospectus exemptions. The accredited investor exemption rules are in place to protect investors from making unsuitable investments. The exemption allows companies to sell their securities to individuals who meet requirements for specific levels of net income and financial assets. Learn more about types of prospectus exemptions.
It is the obligation of the issuer to ensure that they can rely on a prospectus exemption, and that the purchaser meets the definition of “accredited investor”. There is no formal process to register as an accredited investor, but you should be prepared to provide documentation that proves you meet the income and financial asset requirements.
Contact the OSC’s Inquiries & Contact Centre to learn more about the rules that relate to prospectus exemptions.