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Articles · Exempt market

Exempt market: start with the risks.

The word “exempt” describes a prospectus exemption, not an exemption from risk. Here is what that changes in practice for an investor.

The CompareTaux teamReading: 4 min

What the issuer is exempt from

From producing a prospectus, the detailed document reviewed by the regulator that accompanies a public offering. Available information is therefore less standardized, and comparing investments harder.

Liquidity is the real question

Many exempt-market investments cannot be resold easily, or at all before a maturity date. Before the hoped-for return, the question to ask is: how long until I can get this money back, and on what terms?

Access conditions exist for a reason

Exemptions rest on criteria — income, assets, or advice from a registered person. Those criteria are not a privilege to obtain: they exist because the risk of losing capital is real.

Who to talk to

A representative registered in the appropriate category must assess whether the investment suits your situation before any subscription. CompareTaux displays no return and produces no recommendation.

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