What is an “Exempt Market Dealer”?
Investing in a Mortgage Investment Corporation (MIC) is considered a trade by the British Columbia Securities Commission (BCSC) and other securities regulatory authorities in Canada. All investments pertaining to a MIC must go through an Exempt Market Dealer for new and current clients.
Exempt Market Dealers (EMDs) are registered securities dealers who engage in the business of trading in prospectus exempt securities, or any securities to qualified exempt market clients. Clients of EMDs include companies, institutional investors, accredited investors (sophisticated or high net worth individuals who are eligible to trade securities in the exempt market), or eligible investors who are qualified to purchase exempt securities pursuant to an offering memorandum.
EMDs are subject to full dealer registration and compliance requirements and are directly regulated by the provincial securities commissions. EMDs are required to meet all dealer obligations which include: educational proficiency, capital and solvency, insurance, audited financial statements, know your client, know your product, trade suitability, compliance systems, record keeping, client statements, trade confirmations, disclosure of conflicts of interest and referral arrangements, etc. The EMD category of registration exists in all provinces and territories of Canada.
Becoming an EMD requires registrations with one or more securities regulatory authorities across Canada. Bayfield Investment Services Ltd. Is registered as an exempt market dealer in British Columbia and currently is a captive dealer for “Bayfield Mortgage Investment Corp”.
