A look at reducing the cost and
increasing the robustness of
Many Exempt Market Dealers (EMDs) and issuers
have recently expressed concerns over the escalating
cost of the due diligence process. This is mainly a result
of the diversity of diligence procedures and the lack of
consensus on what constitutes proper due diligence among
EMDs. Unfortunately, Canadian securities regulators
have not issued formal rules governing what constitutes
appropriate due diligence procedures tailored for EMDs,
although some limited guidance has been provided, which
we discuss briefly in this article.
By Peter Fang, CFA, Co-Founder, BlackOre Research Inc.
Miika Makela, CFA, Dealing Representative, Sloane Capital Corp.
Separating an EMD’s Due
Diligence Obligation from
Issuer-Paid Research Reports