Non-eligible investors resident in Ontario can purchase up to $10,000 in securities under the offering memorandum exemption in the preceding 12 months.
Eligible Investors in Ontario can purchase up to $30,000 in securities under the offering memorandum exemption in the preceding 12 months.
To qualify as an Eligible Investor (and purchase up to $30,000), you must meet one of the following requirements:
- Net assets, alone or with a spouse, exceeding $400,000.
- Net income before tax exceeding $75,000 in the previous two calendar years, with an expectation to exceed that level in the current year.
- Net income, alone or with a spouse, exceeding $125,000 in the previous two calendar years, with an expectation to exceed that level in the current year.
Eligible Investors who qualify under any of these 3 bullet point categories can automatically qualify by following the prompts in their suitability questionnaire.
Alternatively, there is a new self-certified investor exemption pilot currently running (concluding April 2024) which allows you to invest if you have achieved certain educational standards. You must self-declare that you have one of the following:
- hold a Chartered Financial Analyst Charter from the CFA Institute;
- hold a Chartered Investment Manager designation from the Canadian Securities Institute (CSI);
- hold a Chartered Business Valuator designation from the CBV Institute;
- hold a Chartered Professional Accountant designation from CPA Canada;
- hold a Certified International Wealth Manager Designation from the CSI;
- were admitted to practice law in a jurisdiction of Canada and at least 1/3 of their practice has involved providing advice respecting financings involving public or private distributions of securities or mergers and acquisitions;
- hold a Master of Business Administration degree with a focus on finance, from a Canadian university or an accredited foreign university;
- hold an undergraduate degree in finance or an undergraduate degree in commerce or business with a major or specialization in finance or investment, from a Canadian university or an accredited foreign university;
- have passed the Canadian Securities Course administered by the CSI;
- have passed the Exempt Market Products Exam administered by the IFSE Institute
- have passed the Canadian Investment Funds Course Exam administered by the IFSE Institute
- have passed the Investment Funds in Canada Course Exam administered by the CSI;
- have passed both the Series 7 Exam administered by the Financial Industry Regulatory Authority in the United States of America, and the New Entrants Course Exam administered by the CSI;
- hold the Certified Financial Planner designation from FP Canada;
- hold a Financial Planner or Financial Advisor credential, in good standing, from a credentialing body approved by the Financial Services Regulatory Authority of Ontario under the Financial Professionals Title Protection Act, 2019 ; or
- have management, policy-making, engineering, product or other relevant operational experience at a business that operates in the same industry or sector as the issuer and who, as a result of this experience, are able to adequately assess and understand the risk of investment in the issuer.
If you fall under one of the educational requirements, email us at email@example.com with proof of your educational requirements being met to qualify.
Eligible Investors in Ontario who have received advice from a portfolio manager, investment dealer, or exempt market dealer can purchase up to $100,000 in securities under the offering memorandum exemption in the preceding 12 months. If you would like to discuss this option, please email us at firstname.lastname@example.org to discuss the process.
The preceding 12 months refers to the 12 months immediately before the day of your particular addy investment and not the calendar year. So, if you invest with addy on January 2, 2022, the calculation includes all of your investments in securities made under the offering memorandum exemption between January 2, 2021 and January 2, 2022.