By John Wires …One of the industry groups that made submissions is the National Crowdfunding Association, or NCFA (disclosure: I sit on the advisory committee). To date, the NCFA had very positive meetings and public consultations with the OSC. While the OSC made it clear that its proposed framework does not mean it has committed to permitting crowdfunding in Canada, it has certainly taken significant and positive strides. …READ MORE 

…But Mr. Wires is also cognizant of the inherent risks of equity crowd-funding. “There is a lot to be said for the argument that the crowd is not wise enough. There is large exposure to the prospect of fraud.” …READ MORE 

But John Wires, a lawyer who has been lobbying for Canadian authorities to relax the rules around equity crowdfunding, said that “what’s happening in the United States will impact Canada whether Canada likes it or not.” Wires believes the JOBS Act will accelerate the growth of crowdfunding in the U.S., and he wants provincial securities regulators here to pass similar laws, provided investors are protected from fraudulent schemes and other “abuses of the system.” …READ MORE 

The potential for raising equity is tremendous for startups starved of seed capital, said John Wires, a legal advisor to the National Crowdfunding Association of Canada. “[Equity crowdfunding] democratizes access to investment opportunities,” Mr. Wires said. “The job of the securities regulators is to make sure they find the right balance between the risk of fraud and the potential benefits of funding a whole new wave of businesses.” …READ MORE 

…While undoubtedly the crowdfunding industry will have its fair share of failures, can we really say that the benefits of creating a new generation of companies, jobs and economic development in Canada isn’t worth exploring in a new era of securities regulation? …READ MORE