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EDMONTON — The securities watchdogs of Alberta and British Columbia are warning people considering investing in real estate securities offered by private companies to do their homework.
Many of these investment opportunities are in what the securities commissions define as an "exempt market," said an advisory issued by the Alberta Securities Commission and the British Columbia Securities Commission.
That means private companies are not required to give the same ongoing disclosure such as financial statements, press releases or material change reports as public companies.
"If investors are considering investing in these opportunities, it`s important to understand that in the exempt market, you are largely on your own without many of the investor protection provisions that are mandated when investing in a public company," said ASC executive director David Linder.
The commissions issued the warning after a recent increase in the number of inquiries about the investments, said a spokesman.
Linder advised people to read any risk disclosure and consult with an independent adviser such as a lawyer, banker, accountant, financial adviser or someone with business acumen.
By Bill Mah, edmontonjournal.com
http://www.edmontonjournal.com/Beware+real...0918/story.html
Many of these investment opportunities are in what the securities commissions define as an "exempt market," said an advisory issued by the Alberta Securities Commission and the British Columbia Securities Commission.
That means private companies are not required to give the same ongoing disclosure such as financial statements, press releases or material change reports as public companies.
"If investors are considering investing in these opportunities, it`s important to understand that in the exempt market, you are largely on your own without many of the investor protection provisions that are mandated when investing in a public company," said ASC executive director David Linder.
The commissions issued the warning after a recent increase in the number of inquiries about the investments, said a spokesman.
Linder advised people to read any risk disclosure and consult with an independent adviser such as a lawyer, banker, accountant, financial adviser or someone with business acumen.
By Bill Mah, edmontonjournal.com
http://www.edmontonjournal.com/Beware+real...0918/story.html