09/15/2026
True or False: Exempt market investments are unregulated.
If you answered false, you're right.
This is one of the most common misconceptions about private investing.
While exempt market investments are not offered through a prospectus like many public investments, they are still subject to securities regulations in Canada.
Exempt market dealers are registered with provincial securities regulators and must follow strict requirements related to:
✓ Know-Your-Client (KYC)
✓ Suitability assessments
✓ Due diligence
✓ Disclosure requirements
✓ Ongoing compliance obligations
Private investments may have different rules than publicly traded investments—but different doesn't mean unregulated.
Understanding how the exempt market works can help you make more informed investment decisions.
What other questions do you have about private investing? Let us know in the comments.