Private assets market - philosophy and vision

National Exempt Market Association

by Edward Robertson and Peter Falohun
[Updated 02 February 2017.]

The prominent Canadian Exempt Market professionals' publication Exempt Edge [now rebranded The Private Investor] is a quarterly magazine of the National Exempt Market Association (NEMA), edited by Cora Pettipas.

This editor has covered a wide range of issues as the market has matured. Feature articles have answered the needs of exempt market dealers; issuers; exempt market dealer representatives; clients and other market participants. The material addresses the economy; regulation; compliance; professional education; professional standards and ethics; business practices; technology, and the increasing complexity of the exempt market. I set myself the task of reviewing editorials to see what themes have emerged with regard to philosophy, values and long term vision.

Here are some notable quotes from Exempt Edge editorials (used with permission):

Inspiration and national vision

We need to continue to constantly improve and develop, and learn from our own mistakes as an industry, and the mistakes of areas of the capital markets that evolved before us. (EE, Fall 2014, p.6)

We [private market industry] are all a part of something very vital to the future of the Canadian economy, as it suffers the potential blows of globalization. Our market can help fund the next idea, the next innovation. (EE, Fall 2014, p.6)


Most importantly, how we [in the private capital markets] conduct ourselves, work with regulators, and build credibility in our market will shape its future. (EE, Fall 2014, p.6)

Diversity in ideas, people and businesses bring flavour and colour to life (and the economy). We need to nurture the diversity in life – especially within our industry. The minute we are not allowed to have differences in opinion, and actions, is the moment we are not free thinkers anymore. (EE, Summer 2015 p.6)

Concern for investors’ experience, education and innovation

When you take diversity out of the investor experience, the client ends up with advisors that say the same things, offer the same investments with the same restrictions. A dreary grey Pablum of investor experience is created. (EE, Summer 2015 p.6)

This is the purpose of our industry; to enrich clients while funding businesses. This is what we do. We, as an industry, need to be proud of the offerings we can provide investors. This is a world of innovative Issuers, patient money untethered by quarterly ratio analysis and conspicuous market risk. (EE, Summer 2015 p.6)

There have been many industry strides over the past few years to democratize private investing and give average people more options to help them build their wealth, like the upcoming OM Exemption in Ontario slated for this fall. The problem is that as long as individuals are an asset on the bank’s balance sheet, they cannot build assets for themselves. (EE, Fall 2015 p.8)

Key issues in the private assets industry, as expressed in the editorial comments above, include technical matters of regulation and compliance, rules affecting the investor's experience, and new developments and innovations. There is a clear impression that many diverse players are working to forge a credible and effective framework for the industry as it comes more into public view. Finally, the editor of Exempt Edge has expressed a far reaching vision that gives private market investments an important place in the national economic well-being.

Exempt Edge

Quotes and logo used with permission.

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