Wealth Management

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Showing posts with label Exempt Market Dealer. Show all posts
Showing posts with label Exempt Market Dealer. Show all posts

March 7, 2011

Seems that the EMD has a great deal of value

What is the use of the registration Exempt Market Dealer EMD? After a lengthy discussion, I learnt that there is a long list of reasons the EMD brings value to both business owners and investors, such as reporting in to a regulatory body bringing protection to business owners. Then there are a slew of the hidden benefits for the Canadian economy.

In Halifax, the EMDA held a meeting at Cox and Palmer's beautiful law offices, situated right on the shoreline where military ships sat in the harbor and massive cargo ships slowly pulled into sight, arriving from distant lands. Patrick Fitzgerald, the expert in financially oriented law, was gracious enough to show me around the offices and to view their fine art collection. 
The EMDA event was well worth the trip to Halifax.  It reminded me how fortunate we are to live in this peaceful, safe and secure land. It seems fitting that our business opportunities and transactions offer the same protections to our business stakeholders. 
Canada is attractive as a place to do business because of its high ethics and legal protection. We are moving up in the globe because of registrations such as the EMD.
 The Securities Commission people also presented an interesting presentation, posing questions for the industry. It turned into a fantastically useful debate - still  being resolved over the next few years, mind you. 
I was particularly taken with the thoughtfulness and respect for business owners by the regulators - not the image one often gets from the media. Thank you for that, Nova Scotia!

September 29, 2010

Exempt Market Dealers Have Business Trigger

Canadian securities legislation creates two categories of securities that may be sold: 
(i) prospectus securities; and 
(ii) securities issued under prospectus exemption. 
Securities issued under the prospectus exemptions, otherwise known as non-reporting issuers, are typically considered to form the "exempt market". 
Under NI 31-103, a new dealer registration category is introduced in all jurisdictions across Canada to regulate the sale of securities in the exempt market - the exempt market dealer (EMD).
A critical change under NI 31-103 is the introduction of the "business trigger" for dealer registration. Prior to September 28, 2010, the requirement to be registered as a dealer is triggered by a person engaging in a "trade" of securities. With the new rules introduced in 31-103, the "trade trigger" is replaced with a "business trigger", so the dealer registration requirement will only apply to those whose trading in securities amounts to carrying on the business of trading in securities. Companion Policy 31-103CP provides guidance on what acts are deemed to be sufficient to trip the "business trigger".
NI 31-103 introduces consistent rules concerning proficiency, conduct, capital and compliance requirements and makes it clear that EMDs are subject to the same know-your-client ("KYC") and suitability requirements as other dealer categories.