With Chris Croteau, Partner at Tingle Merrett LLP
1. The exempt market is an exciting alternative to the mainstream investment markets.
2. The exempt market is not for the uninformed, part-time investor or dealing representative.
3. The thing I like the most about the exempt market is the ability to invest in a wide range of unique products, often at a start-up stage.
4. The one rule I would change in the exempt market is a more streamlined approach to the form of offering memorandum.
5. The stock market is the exempt market’s ‘efficient and established big brother’ that offers immediate liquidity to its investors.
6. In regards to the exempt market, regulators need a better understanding of the start-up and growth markets and the issuers in those stages of growth in order to better regulate this area.
7. The biggest misconception people have about the exempt market is that it is the ‘wild west’ of investing, where you invest at your own peril with little or no guidance.
8. The most important thing investors should know about the exempt market is that often your investments are not liquid so you need to do your homework on what you are investing in.
9. Dealing Reps need to be extremely informed on the products they are recommending to their clients and the progress of such investments over the life of the product.
10. There is not enough average/everyday investors in the exempt market
11. There is too much unnecessary cost to dealers and issuers in the exempt market
12. The exempt market is no place for ‘used car salesman’ type of dealing representatives.
13. In 5 years the exempt market will hopefully have grown to a respected environment to invest and make returns on your money, likely controlled by only a handful of large dealers.
14. The biggest change in the exempt market has been the improved review and due diligence being conducted on investment products being sold by dealers.
15. The biggest challenge for the exempt market is gaining mainstream credibility.
16. The key to longevity for the exempt market is stability from a dealership and dealing representatives standpoint.
17. Critics of the exempt market are usually not informed on the market or the recent changes to it.
18. NEMA is achieving stability in the exempt market by bringing players in the industry together on issues and creating solutions together.