The Ontario Securities Commission has announced the debut of an OSC LaunchPad Long-Term Asset Fund Project focused on new investment fund products highlighting long-term assets.
Through the project, the OSC will collaborate with firms planning to develop investment funds showing this asset class to retail investors. The commission seeks to consider new exemptive relief requests allowing alternative investment fund structures; it will also examine and necessitate customized investor protection controls based on each fund and product's specifics.
The commission's Investment Management Division and Office of Economic Growth and Innovation worked closely together on the project.
"The investment landscape is shifting, and retail investors are increasingly looking to diversify their portfolios. The LaunchPad project is supporting new and innovative financial products that can enhance market efficiency and provide new opportunities for investors. Through this work we are bridging the evolving needs of investors and the growth aspirations of firms, all with the support and investor protection oversight of the OSC," OSC CEO Grant Vingoe said in a statement.
The LaunchPad project was introduced as a response to stakeholder comments on an October 2024 OSC consultation paper. The commission had pitched the development of the Ontario Long-Term Asset Fund (OLTF) as a new investment fund category enabling Ontarians to invest in assets to which they are not typically exposed, such as venture capital, private debt and equity, and infrastructure and natural resource projects.
According to the OSC, OLTFs could grant retail investors more chances to join in capital-intensive projects while permitting businesses to reduce funding costs and raise growth capital. The commission has urged stakeholders to reach out with potential investment fund product structures that could bolster opportunities for retail investor holdings of long-term assets with appropriate investor protections. It also called for inputs on exemptive relief to drive product launches.
The OSC aims to protect investors from unfair, improper or fraudulent practices; cultivate fair, efficient and competitive capital markets, and confidence in the capital markets; and foster capital formation. It also seeks to help stabilize the financial system and limit systemic risk.