A primary frustration for retail investors was their inability to participate in private placement financings that often come with the benefit of a warrant, and sometimes a discounted rate to the secondary market.

These financings have often been restricted to the general retail audience because of the costs and time involved for a Company to file a prospectus.

In short, the current rules mean retail investors are disadvantaged from being able to participate in private placements, while TSX Venture issuers are denied a potential source of capital.

Last November, the Canadian Securities Administrators (CSA) proposed an exemption that would allow TSX Venture issuers to distribute securities to existing security holders, thereby reducing the cost for investors and providing issuers with access to an additional source of financing.

Thus far, it seems all the provincial and territorial regulators, with the major exception of Ontario, like the proposal. Furthermore, it seems the BC Securities Commission and the Alberta securities Commission has been very accommodating to the suggestions of the investment dealers - the key backers of emerging companies in Canada.

The proposed exemption means that retail investors may soon be able to participate in private placement financings without being an accredited investor, and without a company filing or obtaining a receipt for a prospectus.

Investor participation in private placements shouldn't be restricted based on his/her net worth. I believe there are many sophisticated Canadian investors and we should all be given equal rights in determining our own investments.

What do you think? Should every Canadian be allowed to participate in private placements?

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This proposal is a great step forward in bringing equality and revitalization to Canada's emerging markets.

The deadline for submissions on the proposal is January 20, 2014. If this proposal is accepted, it will be a pivotal turning point for the TSX Venture.

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