PMAC responded to the OSC’s consultation into a framework to make long-term assets available to retail investors through investment fund structures. PMAC is supportive of efforts to increase diversification opportunities for retail investors but encouraged the OSC to appropriately balance these opportunities with the significant risks involved with investing in illiquid, long-term assets. In particular, PMAC recommended that the OSC:
- Prioritize investor protection and suitability;
- Harmonize any framework across Canada; and
- Eliminate the “Cornerstone Investor” concept, whereby retail investors could only participate in long-term investments alongside institutional investors.
You can read PMAC’s full submission here.
