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What Is An Exempt Market Dealer?
"Exempt securities are sold through private placements and are not subject to the same level of regulatory oversight as securities that are traded on a stock exchange or registered with securities regulatory authorities."
Cynthia Aasen | Registered Dealing Representative
An exempt market dealer (EMD) is a type of securities dealer that is registered with securities regulatory authorities and is authorized to sell securities that are not traded on a stock exchange or that are not registered with securities regulatory authorities. These securities, also known as “exempt securities” are sold through private placements and are not subject to the same level of regulatory oversight as securities that are traded on a stock exchange or registered with securities regulatory authorities.
EMDs are typically involved in the sale of alternative investments, such as private placement securities, structured products, and funds not available through traditional retail channels. They are also sometimes involved in the sale of securities of emerging or small companies that may not yet be listed on a stock exchange or that do not meet the listing requirements of a stock exchange.
EMDs are required to register with securities regulatory authorities and are subject to regulatory oversight, but the requirements for registration and ongoing compliance may be less stringent than for dealers that trade securities on a stock exchange. Additionally, EMDs are also required to meet certain proficiency and compliance standards, maintain risk management policies and procedures, and to provide clients with disclosure documents which include a risk warning.
It’s important to keep in mind that investing in exempt securities carries additional risks compared to traditional investments, such as lack of liquidity and greater price volatility, and they also can have a higher risk of fraud, as they may not be subject to the same level of regulatory oversight. It’s important to do your own research and consult with a registered professional before making any investment decisions.
What is a Dealing Representative?
A dealing representative is an individual who is licensed and registered with securities regulatory authorities and is authorized to sell securities and provide advice to clients on behalf of a registered securities dealer, such as a securities firm or an exempt market dealer (EMD). They are also commonly referred as “registered representative” or “financial advisor”.
Dealing representatives act as the primary point of contact for clients, providing them with investment advice and selling them securities that are appropriate for their investment goals and risk tolerance. They are responsible for building and maintaining client relationships and for ensuring that their clients are aware of the risks associated with the securities they are purchasing.
In order to become a dealing representative, individuals must pass a proficiency exam, meet certain educational and experience requirements, and must comply with ongoing regulatory requirements such as continuing education and compliance with the regulations. They are also subject to regulatory oversight and are required to comply with industry standards of conduct, such as providing their clients with appropriate disclosure documents and making suitable investment recommendations.
It’s important to keep in mind that dealing representatives may not be able to provide advice on all types of investments, as they are only licensed and authorized to advise and deal with certain types of securities. Additionally, they are also required to disclose any conflicts of interest and to put their clients’ interests first. It’s important to choose a dealing representative who is registered and licensed, and who has the qualifications and experience to provide you with the guidance you need to make informed investment decisions.
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Licensed as a professional real estate agent for 25+ years, Cynthia’s expertise is diverse – real estate syndication, development, multi-family value-add and strata ownership. Dually registered as Associate Broker with eXp Realty Canada Inc. and Dealing Representative with Integrated Equities Inc. she is able to offer investors access both public and private real estate investments in North America’s leading markets.
Cynthia and her team act as advisors helping you make informed decisions. Since 2015 they have raised over $100 million in limited partnership equity representing $400 million in real estate transactions since inception in 2015. In addition, they sold over 200 individually titled investor properties, offering “true” turn-key solution for active real estate investors – “You invest, we’ll do the rest”.
