About Exempt Market Dealers (EMDs)

What makes EMDs different from other types of security dealers?


Exempt market dealers must follow the same "Know Your Client" procedures as other registered dealers which ensures that each client's personal, financial and investment profile is understood and confirmed prior to any trading activity.

Exempt market dealers must also ensure that any exempt security is suitable for a particular client by considering the particular investment product as well as each individual client's investment goals and profile.

Exempt market dealers are different than:

Full service investment dealers which engage in trading for all types of clients including retail clients and are required to be members of the self-regulatory organization, the Investment Industry Regulatory Organization of Canada (IIROC).
Mutual fund dealers which are restricted to trading in mutual funds and are required to be members of the self-regulatory organization, the Mutual Funds Dealers Association (MFDA).
Scholarship plan dealers which are restricted to trading in scholarship plans and educational trusts.
Restricted dealers.*

*Source: What are Exempt Market Dealers? Exempt Market Dealers Association of Canada Website (Retrieved August 2013)