Published February 7, 2026
The following article was published in The Globe and Mail on February 7, 2026. It is well written and worth the read.
Ontario’s securities market regulator has faced pressure from Premier Doug Ford’s government to authorize a new class of mutual funds aimed at retail investors that can hold higher-risk private assets such as real estate.
The initiative is being touted as a way to give ordinary investors access to the burgeoning world of privately owned companies and assets, which are mostly only directly available to institutions and sophisticated, wealthy accredited investors.
But investor advocates say private asset investing is riskier and typically more expensive than traditional mutual funds – especially for small investors – and the advocates warn that the plan to create new private asset mutual funds could lead to investors’ money being locked up for years in long-term real estate or infrastructure projects that have extremely complex fee structures.
Three people familiar with the process said the Ford government pushed the Ontario Securities Commission to launch the proposal as a way of raising money for big infrastructure projects. The OSC was urged to prepare a consultation paper unusually quickly, the people said, with the published result containing very little research or industry input.
The Globe and Mail has agreed not to identify the people as they are not authorized to discuss the matter publicly.
Scott Blodgett, a spokesperson for Ontario’s Ministry of Finance, said in an e-mail that while the government discusses capital‑formation initiatives with the OSC and receives updates, it “does not direct or expedite regulatory work.”
“Decisions about long‑term asset fund design, timing and investor safeguards rest solely with the OSC,” Mr. Blodgett said.
OSC spokesperson Julia Mackenzie said the commission’s proposal to launch retail private assets “dates back” to a 2021 report published by the Capital Markets Modernization Taskforce – another regulatory initiative by the Ford government.
At that time, the task force recommended the OSC write a formal proposal on retail private equity investment funds, and then seek public input. The task force said the funds could help close a “funding gap” for smaller companies. Three years later, in the fall of 2024, the OSC launched a consultation paper on retail investors’ access to long-term assets that mentioned the funds could also increase opportunities for additional funding for government infrastructure projects.
“The OSC believes it is important to be open to new and innovative financial products that can enable capital formation and provide new opportunities for investors, with appropriate oversight, disclosure and investor protections,” Ms. Mackenzie told The Globe in an e-mail.
Here is the link to read the rest of this article: Ontario is proposing a new class of mutual funds. Investor advocates warn the risk may not be worth the reward – The Globe and Mail