The Ontario Securities Commission wants to give retail investors access to private markets. But as SCP Fellow Rachel Wasserman, founder of Wasserman Business Law, tells BNN Bloomberg’s Andrew Bell, when you look closely, it starts to look less like democratization and more like offloading risk onto people with the least power to absorb it.

Private equity is already underperforming S&P index funds over 1, 5 and 10-year periods and PE’s biggest historical champions are quietly reducing their exposure. So, why would regulators suddenly be so eager to open the door for retail investors? This proposal to offer retail investors access to PE stands to benefit the asset managers and intermediaries, with everyday investors bearing the costs and risks. Financial inclusion does not mean broadening access to financial products that sophisticated players are already walking away from.

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Rachel Wasserman
Founder, Wasserman Business Law
Fellow, Social Capital Partners


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