In September, 2009, the federal government introduced new legislation to reform the exempt market and also nationalize parts of the Securities Act. Before this new legislation, each province had its own rules for the trading and business of Exempt Market products.
The new federal regulations were set out in 2009 in order to achieve the following goals:
The federal government achieved these goals through National Instrument 31-103. This ensures that anyone offering Exempt Market products to clients:
NI 31-103 also created the “Exempt Market Dealer” which is a new term for most people but now the backbone of the Exempt Market industry.
So to sum up, the new regulations have brought about some very positive changes: