EXEMPT EDUCATION | A Positive Sum Game | www.exempteducation.ca
By: Travis Dickie
Committed to increasing awareness of the Exempt Market investments space, NEMA and its members launched an exciting new, in-depth web education resource last month. Aptly titled “Exempt Education,” this non-profit initiative aims to satisfy the curiosity of new and seasoned investors alike, who want to learn more about the Exempt Market. Supplying common newcomer information surrounding eligibility requirements, regulatory involvement, the ‘risk return’ relationship and other unique features of alternative investments, the webpage provides readers with a detailed breakdown of the key concepts which govern participants in this unique and rewarding sector.
From the development stages, to the launch, through to today, the intentions motivating Exempt Education have been collaborative. Offering the industry support from firms like Exempt Experts, Wealthterra Capital Management, Fortress Real Capital, Olympia Trust, 982 Media, Solar Income Fund, Two degrees, Sloane Capital Corp, Redstone and Axcess Capital Advisors alongside the advocacy power of the National Exempt Market Association and their Education Committee, Exempt Education has been a valuable contributor to public knowledge from day one (when it amassed over 1600 views). Recognizing the importance of a clear reflection of the Exempt Market to the Canadian investor, Exempt Education and its founding sponsors aim to dissolve old myths and misinformation, while at the same time, creating a lasting impression on new and current investors.
Though opportunity is abundant, success in the Exempt Market is not achieved without first understanding the peculiarities of this space. It should be noted that even though concepts like limited liquidity and limited secondary market may seem extraneous to a first time investor, they should not be overlooked. Because participation in alternative investments often entails higher risk than traditional, prospectus-based offerings, investors are required to conduct a great deal of due-diligence and research into the stipulations of an investment agreement before getting involved. To aid in this process, Exempt Education presents a full gamut of regulatory qualifying criteria, including the minimum eligibility limits for annual incomes and net worth presented by each province. To compliment this, the website also contributes a breadth of insight into personal financial planning, offering descriptions on topics ranging from cash flow and investment, through to tax, insurance and retirement.
By defining the application process in detail, and from a number of different angles, Exempt Education is equipped to provide prospective investors with the information necessary to move forward. Upon learning the rules of engagement, it will become apparent to investors that the increased responsibility is not only a prerequisite for safety, but also a required skill for those looking to grow and succeed in this new market.
In addition to Exempt Education’s value as an excellent source of knowledge, NEMA also provides audiences with a substantial amount of expert information about the Canadian alternative investments industry. Released quarterly, and freely available in electronic form, NEMA’s trade journal, the Exempt Edge offers an up-to-date look at the market through the eyes of its participants. In each issue, contributors from dealerships across the country have offered their unique perspective about topics ranging from Rod Burylo’s “Doing Well By Doing Good” where he outlines the causal benefits for investors seeking to be involved in primary capital distribution, through to Cora Pettipas’ assertion that the most skilled Investment Brokers offer exit strategies up front in “Which way to the Exit?”
Having grown beyond its formative origins as a fringe financial market, the burgeoning size of the exempt space has triggered greater demand among investors and dealerships for a legitimate referral source for education about the industry. NEMA achieves this ambitious goal.Charged with spreading accurate and relevant information through the most effective channels possible, Exempt Education‘s educational mandate aims high, delivering a calibre of industry representation and insight not available on Wikipedia.