If you’ve been exploring investment opportunities beyond stocks, ETFs, or mutual funds, you’ve likely come across the term Exempt Market Dealer (EMD). But what exactly is an EMD, and why does it matter for Canadian investors? Let’s break it down in plain language.
1. What is an Exempt Market Dealer (EMD)?
An Exempt Market Dealer is a firm registered with provincial securities regulators (like the Ontario Securities Commission or the British Columbia Securities Commission) that is legally permitted to sell securities under prospectus exemptions.
This means EMDs give investors access to the “exempt market”—private investment opportunities not typically available on public stock exchanges. These opportunities can include:
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Real estate development projects
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Mortgage investment corporations (MICs)
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Private equity funds
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Venture capital opportunities
Every EMD operates under strict rules to protect investors, including Know Your Client (KYC), Know Your Product (KYP), and suitability assessments before allowing you to invest.
What is a Prospectus Exemption?
In Canada, when a company wants to raise money by selling securities (like shares or debt), securities laws normally require them to file a prospectus — a detailed disclosure document reviewed by regulators. Preparing a prospectus is expensive and time-consuming, so it’s typically only used by large companies raising money in public markets (like on the TSX).
A prospectus exemption is a legal “shortcut” that allows companies to sell securities without filing a full prospectus, as long as they meet certain conditions. These exemptions are designed to balance investor protection with efficient capital raising.
Common Prospectus Exemptions in Canada
Here are some of the main ones:
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Accredited Investor Exemption
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Investors who meet certain income or asset thresholds (e.g., $200K+ annual income or $1M+ in financial assets) can invest without a prospectus.
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Offering Memorandum (OM) Exemption
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Allows companies to raise money from both accredited and retail investors, provided they give investors an Offering Memorandum (a disclosure document lighter than a prospectus).
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Family, Friends, and Business Associates Exemption
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Lets companies raise capital from close personal or business relationships.
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Minimum Investment Exemption (note: not available in all provinces)
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Historically, individuals investing $150,000 or more could invest under this exemption.
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Crowdfunding Exemption
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Enables companies to raise small amounts of capital from many investors online, subject to caps and portal requirements.
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Why It Matters
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For Issuers (companies raising capital): Prospectus exemptions make it possible to raise money faster and at lower cost.
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For Investors: It opens the door to private investments that aren’t listed on public markets—but with higher risk, less liquidity, and less disclosure.
👉 Prospectus exemptions are the foundation of the exempt market. Exempt Market Dealers (EMDs) are the licensed firms that distribute these securities to investors, making sure the rules are followed.
2. The Role of Dealing Representatives (DRs), CCOs & UDPs
Within each EMD are licensed Dealing Representatives (DRs). They are the frontline professionals who:
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Review your financial situation and investment goals
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Ensure products are suitable for your circumstances
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Walk you through the risks and documentation
Every EMD also has two critical compliance roles:
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Chief Compliance Officer (CCO): Oversees regulatory compliance, supervises DRs, and ensures the firm follows securities laws.
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Ultimate Designated Person (UDP): A senior executive responsible for the overall compliance culture of the firm.
3. Captive EMDs vs. Independent EMDs
Not all EMDs are created equal. Here’s the key difference:
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Captive EMDs: These are owned by, or tied to, a single issuer. They only distribute their own products. Example: A real estate developer that sets up its own EMD to raise money solely for its projects.
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Independent EMDs: These work with multiple issuers and offer a range of opportunities to investors. This allows for greater choice and diversification.
4. List of Active Exempt Market Dealers in Canada (30 Examples)
Here are some EMDs operating across Canada today. (Registration status can change, so always verify on your provincial securities regulator’s website.)
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Atlas One Digital Securities
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Equivesto Canada Inc.
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FrontFundr (Silver Maple Ventures Inc.)
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Parvis Invest Inc.
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Axcess Capital Advisors Inc.
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TriView Capital Ltd.
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Raintree Financial Solutions
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Deans Knight Capital Management Ltd.
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Invico Capital Corporation
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Centurion Financial Trust / Centurion Asset Management Inc.
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WM Capital Partners Ltd.
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Robson Capital Partners
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Caplink Financial Corporation
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Belmont Equity Partners Inc.
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PI Financial Corp. (EMD registration for exempt offerings)
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Waverley Corporate Financial Services Ltd.
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Stonebrooke Asset Management Inc.
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Chancery Advisors Inc.
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Devsco Realty Investments Ltd.
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Fiera Capital Private Alternatives EMD
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Allied Wealth Management Inc.
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Almore Capital Ltd.
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Western Wealth Capital EMD Inc.
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Timbercreek Capital EMD Inc.
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Maven Capital Partners EMD
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AgriInvest Capital Inc.
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GreenSky Capital Inc.
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Liahona Capital Inc.
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Riverside Capital EMD Inc.
This list is not exhaustive, but it reflects a cross-section of both national platforms and specialized regional/private EMDs tied to real estate, mortgages, or private funds.
5. How addy Software is Enabling EMDs
Traditionally, accessing exempt market investments has been complex and paper-heavy. addy’s software platform is changing that.
With addy, third-party EMDs can:
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Onboard investors digitally with KYC and suitability workflows
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Distribute offering documents securely online
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Collect electronic signatures and funds directly through the platform
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Maintain compliance records automatically
This means investors across Canada can now sign up at addyinvest.ca, open a free account, and gain access to the exempt market for real estate in a streamlined, transparent way via 3rd party Exempt Market Dealers. Once you have created an account, select your Exempt Market Dealer to review their opportunities.
6. Why Sign Up for addy?
By creating an account, Canadians get:
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Access to exempt market opportunities vetted and distributed through registered EMDs
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A simple, tech-powered experience (no stacks of paperwork)
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Transparency on fees and issuer details
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The ability to invest in real estate and other private markets without being a landlord
7. Important Disclaimer
This article is for educational purposes only and is not investment advice. Securities offered in the exempt market are risky, often illiquid, and not suitable for everyone. Always review offering documents carefully, consult with licensed Dealing Representatives, and make sure investments align with your personal financial situation.
Final Thoughts
The exempt market in Canada has traditionally been reserved for insiders, institutions, or accredited investors. Thanks to EMDs—and now platforms like addy—everyday Canadians can get a seat at the table.
👉 Ready to explore the exempt market? Create your free account at addyinvest.ca today.
