Exempt Market Dealers
EMD stands for Exempt Market Dealer.
EMDs are licensed through the Provincial Regulators. In Ontario, the Ontario Securities Commission (OSC) is the provincial regulator that is the watch dog for EMDs. EMDs are regulated under NI 31-103.
WHAT IS THE EXEMPT MARKET?
The Exempt Market includes alternative investments like debt, equity, asset-backed securities and investment funds. The Exempt Market may be a relatively new term for everyday investors but it has existed for decades. Commonly referred to as private capital or alternative investments, the Exempt Market is a fast-growing and essential segment of the capital markets.
WHO ARE EXEMPT MARKET DEALERS?
EMDs are subject to full dealer registration and compliance requirements and are directly regulated by the provincial securities commissions, like the OSC, ASC and BCSC. EMDs must satisfy similar obligations as other registered dealers who are also IIROC or MFDA members including but not limited to:
- "Know Your Client" (KYC)
- "Know Your Product" (KYP)
- Trade suitability
- Educational proficiency;
- Capital and solvency standards;
- Audited financial statements;
- Compliance policies and procedures;
- Books and records;
- Client statements;
- Trade confirmations;
- Disclosure of conflicts of interest and referral arrangements;
- Complaint handling and dispute resolution;
- Maintenance of internal controls and supervision sufficient to manage risks associated with its business;
- Prudent business practices requirements;
- Registration obligations; and
- Submission to regulatory oversight and dealer compliance reviews.
WHY INVEST THROUGH AN EXEMPT MARKET DEALER?
Volatility and low returns of the public markets in recent years have led investors to explore alternative investment opportunities to enhance their portfolios.
We believe investors should hold a balanced portfolio of both private and public securities.
We specialize in alternative investments and private capital to provide clients with a variety of suitable investment opportunities.
With diversification, integrity and transparency as our priority, we are a sound choice for alternative investing.
OFFERING MEMORANDUM (OM) EXEMPTION IN ONTARIO
Investments in the Exempt Market are expected to vastly increase due to the availability of the OM Exemption for all Ontario residents since January 13, 2016. This exemption opens up Exempt Market alternative investments to the general population instead of just high net worth investors.
ONTARIO PRE-OM EXEMPTION Approximately 200,000 people in Ontario qualified to invest in the exempt market. ONTARIO POST-OM EXEMPTION Approximately four million people in Ontario now qualify, improving the balance between access to capital for companies and investor protection through securities regulations.