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CommunityLend, Lending and Being/Becoming an Accredited InvestorBasically, the government tries to protect you from doing what you want, because in theory, that could be bad, but in reality, probably isn't. Don't take any of this as legal advice! When someone wants to sell a security (and the "notes" from CommunityLend is a security), they have to get them authorized in order to sell to "retail" investors, ie: regular people. Usually this means they have a prospectus. Publicly traded companies fit into this, as do Canada Savings Bonds etc. Shares of private companies do not, so they can't publicly advertise that their stock is for sale, since they aren't a "public" company that has to do things like quarterly reports, etc, etc. But there is an exception for "Accredited Investors". These are essentially people (and other people-like legal entities) with a lot of money. And because they have a lot of money, the government considers them to be good at handling their money and doing their own research and allows for these prospectus-free securities to be marketed to them and them only. In theory, there is a greater chance of losing your money with these investments because the companies themselves don't do the same degree of reporting of their records to the public and the securities commissions. The regulators are requiring any lender in CommunityLend to be an accredited investor. I am unsure if lenders from BC or Quebec have to follow the Ontario qualifications for an accredited investor, or Ontario's, or if they're even different at all. It is hard to say if CommunityLend will allow non-registered users to browse listings for curiousity's sake or not. My hope is that when CommunityLend's Securities Legislation exemption comes up for renewal in 2011, they're able to, in some way, allow non-accredited investors to lend funds. Well, their exemption doesn't really come up for renewal, more like it expires and they better be able to get a new exemption :) Now, of course, just because you have money, that doesn't mean you're good at handling it, you may have been lucky, born into it, made your money in some completely non-money related field etc. Which is why it's all stupid. There's no test of financial literacy to become an accredited investor. A wealthy author could qualify while a Bay Street analyst or junior lawyer would not. From the Ontario Securities Commission: Who qualifies as an accredited investor?
The law assumes that accredited investors do not need the protections offered by a prospectus because they can: (a) get and analyze the information needed to assess an investment without a prospectus; and (b) handle the loss of their entire investment, if things go wrong.
Submitted by Dan on Sun, 09/13/2009 - 20:19.
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Community
Well It is good that if community does not allow unregistered people to come in.
Freelance programmer
Community
Well It is good that if community does not allow unregistered people to come in.
Freelance programmer
Community
Well It is good that if community does not allow unregistered people to come in.
Freelance programmer
I will be coming back
I will be coming back soon，nice informative blog……
It's going to continue
It's going to continue stifle entrepreneurship in this country……
This is a nice blog. Good
This is a nice blog. Good clean UI and nice informative blog. I will be coming back soon, Thanks for posting some great ideas and I'll try to return back with a completely different browser to check things out! Also, I put a link to your blog at my site, hope you don't mind? placement argent
Useful legal information
Useful legal information which will surely help people in sertain projects. security fencing
My thought
I really loved reading your blog. It was very well authored and easy to understand. Unlike additional blogs I have read which are really not good. I also found your posts very interesting. In fact after reading, I had to go show it to my friend and he enjoyed it as well!
crazy rule
Seems like a crazy rule why they would penalise one group of investors just because they don't meet a certain criteria, surely any investment no matter where it comes from is a good positive step.
for me this topic is
for me this topic is something I think I'll never be able to understand... lest I get some economic degree still, thanks for putting it as plain as possible. I have to consult a professional before making any decision, but I find this matter very positive. Jeux and games | Jeux and Jeux de voiture
nice blog
Bonjour et merci pour les informations bonne continuation
Hummm I like it
the companies themselves don't do the same degree of reporting of their records to the public and the securities commissions. Corsa leasing
Lending money
Therefore, anyone can become an investor just because one might have more money than he needs? If I lend a sum of money to my neighbor, is it legal to ask for interest when I get the money back?
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The Accredited Investor. Who Is an Accredited Investor
Most developed countries have laws written to protect the average person from bad and risky investments. The problem is that these very same laws can also prevent the masses from being able to invest in some of the best investments. In America, we have the Securities Act of 1933, the Securities Exchange Act of 1934, SEC Regulations under these laws and the Securities and Exchange Commission (SEC). These laws and regulations were designed to protect the public from Nightlifeblues misrepresentations, manipulation, and other fraudulent practices in the buying and selling of securities. They limit certain investments only to accredited and sophisticated investors as well as require detailed disclosure of such investments. The SEC was created to be the watchdog for the laws.
“ Accredited Investor” means
“ Accredited Investor” means A Subsidiary of any person referred to in paragraphs (a) or (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary, A person registered under the securities legislation of jurisdiction of Canada as an adviser or dealer, other than a person registered solely as a limited market dealer under one or both of the Securities Act (Newfoundland and Labrador),
Investor Requirements
# ncome Level – In most states, you must have a gross annual income of $70,000 or more and have a net worth of $70,000 or more. In the state of California, investors must have a gross annual income of $100,000 and a net worth of $100,000. # Approved States – You can invest if you are you a resident of: California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Kentucky, Louisiana, Maine, Minnesota, Missouri, Mississippi, Montana, New Hampshire, Nevada, New York, Rhode Island, South Carolina, South Dakota, Utah, Virginia, Washington, Wisconsin, West Virginia, and Wyoming # Net Worth – If your total net worth is great than $250,000, there is no annual income requirement. In the state of Kentucky, investors must qualify as an “accredited investor” under the securities act. Painters4u
Accredited Investors
Under the Securities Act of 1933, a company that offers or sells its securities must register the securities with the SEC or find an exemption from the registration requirements. The Act provides companies with a number of exemptions. For some of the exemptions, such as rules 505 and 506 of Regulation D, a company may sell its securities to what are known as "accredited investors." Plumbers4you |Removalists4u |Oak Tree
opinion
for me this topic is something I think I'll never be able to understand... lest I get some economic degree still, thanks for putting it as plain as possible. I have to consult a professional before making any decision, but I find this matter very positive. besides will try to learn more about this by listening to useful pieces of information from http://www.mp3hunting.com SE
I wonder if you rules you
I wonder if you rules you are mentioning apply across Canada or are province based? I thought securities was a provincial constitutional field, therefore enabling each province to regulate as it saw fit.
hi
just because they don't meet a certain criteria, surely any investment no matter where it comes from is a good positive step. Link Building
Unfortunate
If you need to be a millionaire in order to invest in Canada, it kind of renders the entire concept of "microlending" pointless.
Until this changes, it's going to continue stifle entrepreneurship in this country, and that's very unfortunate.
I think we should agitate to make changes. The Obama government is supporting the idea of microloans. Here, it's barely on the radar. Who's with me?
Decide if you want to work
Decide if you want to work for yourself or under someone else; either way there are positive and negative compromises. Business knowledge is must to make it in this competitive field. Partnership Program | high school partnerships | school partnerships
All equals
All men are equals under the law. It seems some are just equals to another extend. So far, I tolerated Big brother to decide what is good and bad for me to ingest (eg drug use) and other habits that could be dangerous for my peers. But to restrict people to take a financial risk based on their net worth is just plain fascism.
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