Compliance
Compliance Disclaimer
National Instrument 31-103 Registration Requirements, Exemptions and Continuing Obligations (NI 31-103) was introduced in 2009 by the Canadian Securities Administrators (CSA) to establish a consistent registration and compliance regime across Canada. NI 31-103 harmonized the registration, conduct and ongoing compliance requirements for each of the provincial securities commissions (excluding Quebec). One of the most significant changes introduced by NI 31-103 was the launch of the Exempt Market Dealer (EMD) category of registration.
What are Exempt Market Securities
When companies (issuers) sell securities such as stocks, options or bonds through the public markets, they are usually required to file a prospectus. A prospectus is a regulated document that describes the investment and the associated risks to the investor. Exempt Market Securities are different because they can be sold without a prospectus and you may receive an Offering Memorandum instead. Exempt securities are also referred to as “private placements” or “exempt distributions”.
Buying an investment without a prospectus means you may not get as much information to base your decision on and as a result you may be taking more risk with your money. There are other risks associated with exempt securities including:
Risk of loss – You could lose your entire investment
Liquidity risk – You may not be able to sell your investment when you need or want to even in an emergency. An investment that is not liquid usually can’t be sold in a short period of time and turned into cash, and in some cases you may not get your money back until the investment matures.
Axcess Capital Advisors is registered in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario with its principal regulator being the Alberta Securities Commission. More information on EMDs and their regulatory obligations can be found on the website of your provincial Securities Regulatory Authority or on the website of the Private Capital Market Association of Canada.
Effective June 30th, 2021, Canadian Securities Administrators (“CSA”) have implemented new regulations called Client Focused Reforms (“CFR”) which apply to all registrants in the Canadian securities industry, including IIROC, MFDA, Exempt Market Dealers, advisors, portfolio managers and Dealing Representatives. These regulations apply to Axcess Capital Advisors Inc. (“we”, “us”, “our “, or “Axcess”) which is registered as an Investment Fund Manager (“IFM”) and Restricted Portfolio Manager in Alberta, and an Exempt Market Dealer (“EMD”) in Alberta, British Columbia, Manitoba, Ontario, and Saskatchewan.
The purpose of the Client Focused Reforms is to better align the interests of an advisor with the interests of clients. The CFRs are based on the fundamental concept that Dealing Representatives and Dealers should put client interests first when making investment recommendations. One key requirement of the CFRs relates to how Dealers deal with conflicts of interest. Dealers must implement policies, procedures, and controls to demonstrate that they have addressed material conflicts of interest in the best interests of YOU the client.
Pursuant to the new regulations, this Conflicts of Interest Disclosure is provided to you as a client of Axcess to ensure you understand existing and reasonably foreseeable material conflicts of interest that affect your interests as a client of Axcess Capital Advisors Inc.
