• Our Passion for the Private Markets: Being clear about high
standards of conduct means more than just meeting regulatory
requirements and avoiding conflicts and deficiencies. It also
means consistently demonstrating why our capital markets are
enriched by a strong and growing private market. Investors
should be confident that the quality of advice, the transparency
of the products and the integrity of the professionals in the
private markets is second to none. The PCMA will continue to
work diligently with its members, and with regulators, to share
the success stories of the private markets and to marshal the
resources to help elevate our standards of professional best
practice across our private markets.
Data and Metrics: For several years a consistent message
of the PCMA has been the need for better data on the private/
exempt market. Through our comment letters on policy proposals,
our meetings and interactions with senior regulators, and in
discussions with our members, we have continually pushed for
more access to market data held by regulators. Yet the consistent
problem we face in challenging certain regulatory reforms,
negative media messages and (un)Fair industry voices repeating
misleading messages about the private markets, is the information
vacuum about the private markets.
Advocacy is most effective when supported by solid and clear
facts. For example, the importance of increased capital raising
tools and policy better aimed at opening up opportunities for
investors rather than restricting them would be far easier to
articulate with a comprehensive view of our private market activity.
Our industry generates reams of data each year yet there is almost
nowhere to go to get it. Whether it means freeing information
trapped within the securities commissions or pursuing private
sector solutions the goal is a better understanding of the activity,
products, investors and people in our private markets.
The PCMA is encouraged that our advocacy with the Commissions
has contributed to the new electronic exempt trade report
submissions, and more recently an appetite for harmonizing the
disjointed NI 45-106F1 trade reports across the CSA, it has been
very slow progress.
The PCMA welcomes the increasing discussion by regulators
and the academic community around the lack of available private
market data. We especially acknowledge efforts of the University
of Calgary trio of Vijay Jog, Jack Mintz and Bryce Tingle who have
ably demonstrated the extent of the problem to be solved, and the
reasons for solving it.
While it is still too early to reveal our specific plans, the PCMA
is underway with a potentially transformative project aimed at
dramatically increasing the level of information on the deals,
products, industries and activity of the private markets.
Capital Raising & the Offering Memorandum Exemption: While
the finish line is still not in sight we do expect to finally see revised
proposals for the Offering Memorandum in Ontario sometime
likely in June 2015 along with new proposals around crowdfunding
and other prospectus exemptions in various jurisdictions. With a
further round of public comments we can hope for a conclusion
in late 2015, but the reality is likely early 2016 before we see any
new capital raising tools in the market. The PCMA stands ready
to engage in the next round of regulatory debate armed as always
with in-depth and constructive analysis to push us towards the
right answers. We are pleased that the fight to preserve the
Accredited Investor Exemption is now over, and the battle to bring
the Offering Memorandum to Ontario appears to have been won,
but we remain wary of the potentially timid proposals that may yet
emerge from this lengthy regulatory policy process.
As you can see, 2015/2016 will be extremely active for the PCMA
and we are hopeful that we can achieve much of what we have
set out here. Our goal is to make a significant difference to the
success of our members and our industry, but to achieve this
requires the support and strength of our members. If you are not
yet part of the PCMA, we encourage you to join.
There is much we can accomplish together.
For more information contact: