What is Exempt Market Dealer?
An Exempt Market Dealer (“EMD”) is a firm licensed in one or more provinces to distribute investment securities from private issuers. These issuers are exempt from the prospectus requirement based on the rules and regulations of each province, and the EMD must be licensed in each province in which it wishes to sell such private securities. These investments, including the Limited Partnership units CPI issues, are often referred to as ‘private capital investments’ as they are not publicly traded.
Only registered Exempt Market Dealer firms can legally sell these types of investments, as EMDs are regulated by various standards to ensure they know their investments (KYP), their clients (KYC) and that they maintain appropriate knowledge and proficiencies. Most importantly, EMDs are required to treat their clients “fairly, honestly and in good faith.”
WHAT ARE THE BENEFITS OF HAVING AN EMD?
EMDs are critical in providing passive investors with access to expertly vetted private investment opportunities in various sectors including real estate, oil and gas, and technology.
EMDs are critical in providing passive investors with access to expertly vetted private investment opportunities in various sectors including real estate, oil and gas, and technology. The job of the EMD is to seek out and screen private investment opportunities by putting each deal and the management team behind each deal through a rigorous due diligence process. This ensures that each deal an EMD presents to their network of passive investors meets the standardized criteria – ensuring the investor’s interests are always the priority. Once an investment is determined to be suitable for an investor, the EMD then educates and guides the investor through the process of investing in the opportunity, ensuring a seamless process.
