enabled by all stakeholders.
As the significance of the private capital
markets continues to be realized and
becomes more mainstream, like mutual
funds, I believe we are on the cusp of a
significant change which will see retail
investors incorporate private investments
into their portfolios.
Likewise, from the issuer’s perspective, more
and more, we need to be putting people
seeking capital together with people who
have capital to invest. The initial funding for
projects and ideas needs this.
7. How would you describe the performance of the private markets in
Canada this past year?
I am not sure how widely known this may be,
but the size of the private capital markets is
much larger than the public markets.
While there is capital raising activity that
takes place, what concerns me is the
challenge faced by issuers in raising capital
and the less than favourable bias against
retail investors investing in the private
These headwinds lead to a flight of capital,
with issuers going to jurisdictions where the
requirements and sentiments are more
favourable to private capital market activity.
These situations do not build Canada’s
prosperity and they do not create wealth for
8. What would you say are the main
aims and ambitions of the PCMA in
late 2018 and beyond?
The goals of the PCMA are to broaden
industry awareness to all stakeholders and to
be the national voice for the private capital
market participants to the public, government and securities regulators.
The impact of government and regulatory
policy on the private capital markets has an
immense impact upon the wellbeing of
The PCMA and its predecessor organizations
have done a great job delivering on those goals,
but it is very important to continue the effort.
9. Why is getting in front of government
and securities commission so crucial?
The PCMA has an enormous responsibility to
educate and inform all stakeholders, but
An organization is the sum of its constituents, and it exists for the benefit of its
members and society. I am very glad to hear
that the PCMA Chapters are so successful.
This is a key channel through which we
engage our members, and I plan to go out to
the Chapters to hear their ideas and
suggestions first hand.
Additionally, I am looking forward to our
spring national conference in Toronto on
Thursday June 6th, 2019. By interacting and
networking with each other, we are able to
share ideas, facts and concepts that enable
us to leverage our strengths and build
Membership engagement is vital to the
ongoing success of the PCMA. It brings with
it a discipline of listening to the “customer”
and always challenging our value proposition
to the membership. Each day we must earn
the continued support of our members and
that means being relevant, providing real
value and being an advocate for them. You
cannot do this from an ivory tower, and you
cannot do this if you are out of touch and not
engaged with your members.
11. In what is an increasingly competitive industry what piece of advice would
you give to exempt market dealers firms
and industry professionals?
This is something that we at Portland obsess
about every day and our Chairman Michael
Lee-Chin consistently reinforces. The
organizational life cycle follows a predictable
pattern: launch, growth, shakeout, maturity,
and either life cycle extension or decline.
What we find is that the person or business
that is able to go the distance through to life
cycle extension has a couple of traits:
1. They have “IIP” (integrity, intelligence and
passion) and you need all three of these; and
2. Every day, in every way they: (1) truly
address clients’ needs; (2) differentiate their
business/practice from the crowd; and ( 3)
build their reputation.
Finally, the successful business or person
has the following: (1) a framework for
decision-making; (2) the ability to control
emotions by referring to the framework; and
( 3) access to capital, human capital, intellectual capital and creativity.
If you have these characteristics, you will
build an everlasting business/practice!
none more so than government and regulators. The private capital markets play a
critical role, as it is private industry that
creates wealth, drives innovation and builds
the nation – not government. Building
government and regulatory awareness of the
private capital markets is crucial to the
short/medium/long term wellbeing of
Government and regulators have a role to
play, specifically government and regulators
should facilitate and enable wealth creation,
while at the same time foster fair, efficient
and competitive practices supported by
adequate cost-benefit analysis.
The PCMA, through its advocacy activities,
including its comment submissions to
various levels of governmental and regulatory
bodies, does a great job in this instance. How
are governments or regulators to facilitate
and enable wealth creation if they do not
understand how wealth is created? It is up to
us to educate and inform them and suggest
balanced policy that benefits Canada and
Additionally, I believe that we as an industry
need to take responsibility for what happens
in our industry. The misdeeds of one
participant have an impact upon all-good
intentioned professionals that work every day
to improve their clients’ circumstances. This
is why I am so proud of the PCMA. The
PCMA developed the proficiency exam that
an individual is required to pass in order to
become a Dealing Representative. The PCMA
sponsors the Chief Financial Officer and the
Chief Compliance Officer courses. These
activities greatly increase the professionalism
of the industry and I would like to see more
in this area.
In the absence of the industry being
responsible, government and regulators will
feel compelled to do something. Our industry
must ensure that we deal honestly, fairly and
in good faith, including with transparency, to
our clients. As gatekeepers, each of us must
act with integrity and act with other stakeholders who have also demonstrated that
they too have integrity. We must not let a few
bad apples spoil the basket.
10. As well as building relationships with
regulators and growing awareness of the
private markets there has been a real push
from the PCMA to engage its members.
Why has this been so important?