In particular, ordinary loans are not considered securities, but they might be depending how they are provided, for example bonds, debentures and other “investment contracts”. In this case, the companies has to comply to the existing relevant securities laws and the Ontario Securities Commission also suggested to check with them whether they need to register as investment adviser or dealer.
All in all Ontario Securities Commission has not made it easier for peer-to-peer lending to establish in the province, but at least operators now know what they have to do: get in touch with OSC and check with them if they are doing everything alright.
About the author - Irene Tordera
Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.