EMDs, or Exempt Market Dealers, are firms registered under provincial legislation in one or more Canadian jurisdictions. From private issuers, these firms distribute investment securities. Based on the laws and rules of a particular province, private issuers may be exempt from prospectus requirements.
Moreover, EMDs work in two principal capacities in capital markets: First, as an underwriter or dealer for securities which exempt prospectus’, and second, as a dealer for securities, including asset funds which are also prospectus-exempt (pooled funds) or prospectus-qualified (mutual funds), so long as they are sold to buyers who qualify for the investment of exempt securities.
At this point, you may wonder…
How Are EMDs Different From Other Securities Dealers?
The other classifications of securities dealers, in conjunction with EMDs, include:
- Mutual fund dealers: These securities dealers are limited to managing prospectus-qualified mutual funds and are directed to be associates of the self-regulatory institution: MFDA (the Mutual Funds Dealers Association of Canada).
- Investment dealers: They may operate as dealers for any kind of securities and clients, including “retail” buyers – investment dealers are directed to be members of the self-regulatory association: the IIROC (Investment Industry Regulatory Organization of Canada).
- Scholarship plan dealers: These dealers are capped to trading strictly in educational trusts and scholarship plans.
- Restricted dealers: These securities dealers are specialized dealers confined to a specific product.
5 Reasons to Work With an EMD
Owner–operated enterprises, founded private and public organizations, and businesses with necessities beyond credit, bank or ‘family and friends’ financing will appreciate the experience and knowledge of an EMD (Exempt Market Dealer). Here are 5 reasons to consider working with one.
1. Less Anxiety and Mental Stress
By assuring your financial specialists are EMD registered, you can depend on their expertise and feel comfortable knowing they are appropriately regulated and governed by securities professionals attached to a high standard of client service and satisfaction. Exempt Market Dealers are responsible for their compliance procedures and operating with integrity and in their client’s best interests.
2. Expert Ability
EMD Registrants must pass a sequence of assessments to assure mastery. Additionally, obedience regulations are in place to guarantee a strict conduct code, and appropriate client strategies are heeded to secure fair and transparent service. Likewise, Exempt Market Dealers must file audited monetary statements and preserve minimum insurance and capital levels.
3. Adherence to Industry Best Practices
EMD conduct is established by regulation, and the EMD must acquire a license. Moreover, EMDs are subject to mastership in finances and functional necessities. A $50,000 minimum of operating funds, periodic reports to clients if trades are accepted on their behalf, and insurance to cover a broad scope of client problems.
4. More Comprehensive Qualifications
EMDs help investors minimize complications and reduce the costly essentials of public equity markets. Also, EMDs are professionals in the buying and selling of exempt market securities. Usually, they specialize in growing capital in specific industries: construction, oil and gas, mining, real estate, food technology, etc. EMDs can deliver clients a complete spectrum of financial possibilities.
5. Conflict Resolution
An independent dispute resolution option is available if a problem arises with the Dealing Representative. This option assures that independent industry professionals seeking win/win solutions solve any client criticisms or complaints.
Next Step: Learn More About Improving Your Financial Standing
Economics is complicated. Learning about the various ins and outs, strategies and techniques, specialists and experts can be tiresome to even the most financially savvy individual. For this reason, you don’t want to go through this process alone. At CWS Capital, we are an EMD firm that can help you find investment opportunities in forex markets (foreign currency exchange).