Risks & Regulations

Background

An integral risk management strategy is to diversify – as the old saying goes, “don’t put all your eggs in one basket.”

Risks

All investments have associated risks which investors should be aware of. An integral risk management strategy is to diversify – as the old saying goes, “don’t put all your eggs in one basket.” At Raintree, we believe it is extremely important that investors have a firm understanding of the risks associated with their investments.
Investing in private securities can display many of the same key risks, including:
•   Reporting standards are lesser for private companies
•   A prospectus is not prepared and a securities regulator does not review an Offering Memorandum prior to its distribution
•   The business and management teams are generally new and/or small
•   There may be no market to trade your securities
•   There are generally lesser governance standards
Additionally, each investment may have very specific business and market risks inherent in it because not all investments display the same underlying risks. Every investor relying on the Offering Memorandum exemption will receive an Offering Memorandum that outlines the risks of the specific investment. Raintree selects investments on a wide spectrum of risk and we do so expecting that the returns will be commensurate with the risk, thus providing investors with a variety of options. The managers we work with are expected to be able to manage or mitigate risk effectively; nevertheless, risk is inherent in investing.
Our Private Wealth Advisors are trained to assist investors in identifying the key risk of an investment and assessing the suitability of the investment in relation to a client’s ability to accept risk and their risk appetite. We take this process very seriously. If you have questions about the risks of investing in alternative investments or would like to know how your portfolio would benefit from investing, please speak with one of our Private Wealth Advisors.

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Regulations

In 2009, the Canadian Securities Administrator enacted National Instrument 31-103, creating an investment dealer category called an Exempt Market Dealer (EMD), which would be allowed to sell prospectus-exempt (private) securities. The securities regulator in each province an EMD is registered in governs its activity. EMDs must comply with NI 31-103, which sets out its responsibility to know-its-client, know-its-product and complete trades (sales) that are suitable for its clients.  Raintree’s home jurisdiction is Alberta, and we are registered from British Columbia to Québec. Dealing Representatives are required to be registered with an EMD.
It is important that investors ensure the Private Wealth Advisor they work with regarding the purchase of private securities is a registered Dealing Representative. You can confirm your Private Wealth Advisor’s registration on the Canadian Securities Administrators website.
Background

Our Private Wealth Advisors are trained to assist investors in identifying the key risk of an investment and assessing the suitability of the investment in relation to a client’s ability to accept risk and their risk appetite.

INVESTMENT OPPORTUNITIES

Our Corporate Finance team is focused on identifying what we consider to be the best private investments for our clients. Click here to learn more about the companies that we have chosen to offer.

BE ALTERNATIVE

Alternative investments are not at the periphery anymore – they have become mainstream. Though our investment offerings may not be suitable for everyone, they generally complement most portfolios.

CONTACT US

The Head Office staff, Corporate Finance division, and Private Wealth Advisors of Raintree Financial Solutions are available to assist you and answer any questions you may have. Contact us today for more information on how we can help shape your financial future.