Education
Learn how this market actually works
Neutral, plain-language reading. No products, no recommendations — articles to start with, the concepts that unlock the register, and the questions worth asking before you deal with anyone.
Start here
Articles
Building a Strong Foundation for Long-Term Wealth
Core principles — setting goals, diversification, risk management, compounding, asset allocation and rebalancing.
02Understanding Digital Assets and Modern Investment Opportunities
How blockchain and digital assets work, the main categories of crypto assets, and the volatility, security and regulatory factors involved.
03Building Wealth Through Strategic Property Investments
Types of property exposure, rental income, leverage, market research and the trade-offs of direct versus fund-based ownership.
The essentials
Four short chapters
Open the ones you need. Together they're a ten-minute grounding in how private and alternative investing is structured in Canada.
01
The basicsWhat “private” and “alternative” actually mean
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Public markets are what most people picture when they think of investing: stocks and funds traded on exchanges, with prices you can look up any moment and rules requiring detailed ongoing disclosure.
Private markets are everything else — investments in companies, funds, debt or property that are not listed on an exchange. They are sold directly to investors, usually under prospectus exemptions, and they typically cannot be resold easily.
“Alternative investments” is a loose umbrella for assets outside conventional stocks and bonds: private equity and venture capital, private credit and mortgages, real estate funds, hedge fund strategies, infrastructure, commodities and futures, and crypto assets.
Who can invest, and why there are rules about it
Because private investments come with less disclosure and less liquidity, securities law limits who they can be sold to. The most common routes are the accredited investor exemption (based on income or assets), the offering memorandum exemption (a disclosure document plus investment caps for most people), and minimum-amount investments. The rules differ by province — which is exactly why a firm's registered jurisdictions matter.
The trade-off to hold in your head: private investments can offer access to strategies public markets don't — in exchange for less liquidity, less disclosure, and more responsibility on you to verify what you're buying.
02
Registration, explainedWhat it tells you — and what it doesn't
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Anyone in the business of trading or advising in securities in Canada must generally register with provincial securities regulators. Registration means the firm met proficiency, capital and conduct requirements, and is subject to ongoing oversight.
What registration tells you
- The firm is legally permitted to do what its category describes
- It is subject to regulatory oversight and compliance obligations
- There is a public record of its status, conditions, and any discipline
What registration does not tell you
- Whether an investment it offers is good, safe, or suitable for you
- What asset classes it actually focuses on
- Anything about performance, fees, or quality
The three big role types: dealers sell securities, advisers manage portfolios and give advice, and investment fund managers operate the funds themselves. The category explorer on the Information page breaks down all 21 official categories with live counts.
Verify any firm on the CSA's National Registration Search before dealing with it — the five-step walkthrough is here.
03
Understanding the risksLiquidity, valuation, fees, concentration
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Liquidity — your money can be locked up
Most private investments cannot be sold on demand. Redemptions may be quarterly, annual, subject to notice periods or gates, or unavailable until the investment matures or is sold. Never commit money you may need on short notice.
Valuation — prices are estimates
A private fund's stated value is an estimate made by or for the manager, often monthly or quarterly, not a live market price. Values can be stale, and the price you'd actually get in a sale can differ.
Fees — layered and negotiable
Management fees, performance fees, commissions and fund expenses can stack. Ask for the total cost, in dollars, over your expected holding period — and compare it to what you're being promised.
Concentration — diversification still matters
A single private deal is a concentrated bet. The exempt market's own rules cap how much most investors can put into some offerings — treat those caps as a floor for caution, not a ceiling.
Higher potential returns and higher risk are the same fact stated twice. Any pitch that offers the first without the second is leaving something out.
04
Doing your own diligenceQuestions, documents, warning signs
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Questions worth asking any firm
- What exactly is your registration, and in which provinces? (Then verify it.)
- How do I get my money out, and how long does it take?
- What are all the fees, in dollars, over my expected holding period?
- How is the investment valued, and by whom?
- What happens if the firm or the issuer fails?
Documents you should expect
An offering memorandum or equivalent disclosure, subscription agreements, risk acknowledgement forms where required, and ongoing statements. Reluctance to put things in writing is information.
Warning signs
- Guarantees, “no risk”, or pressure to decide quickly
- Returns that are unusually high, or unusually smooth
- Unregistered individuals selling securities
- Contact details that don't match the public record
Where to complain
Start with the firm's complaint process, then your provincial securities regulator. OBSI (the Ombudsman for Banking Services and Investments) handles disputes with participating firms at no cost.
Reference
Glossary
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Independent resources
Non-commercial, regulator-run resources. These are the places to verify anything you read here — or anywhere.