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Ontario Securites Commision - Investor offices
Investor News
October 10, 2018
Investing in the Cannabis Industry
 

Investor interest in the cannabis sector has been strong recently as Canada prepares to permit the recreational use of marijuana. The cannabis industry, like any emerging sector, has attracted investors hoping to capitalize on the potential growth and high returns of what they believe are untapped markets or products that may be popular in the future.

This issue of Investor News contains many resources for investors who may want to learn more about the cannabis industry and things they should be aware of when investing in it. Learn more 

 
Businesses in the Cannabis Industry
 

Businesses in the Cannabis Industry

The rapid expansion of the cannabis industry has created opportunities for businesses in the private sector to build companies that develop products, technologies and services beyond just the cultivation and distribution of cannabis itself.

Because of this, there are now a number of businesses operating under the umbrella of the cannabis industry, even if their business does not actually grow or sell cannabis products directly. This makes it possible for Main Street investors to invest in a cannabis company without investing in the cultivation or distribution of cannabis. Learn about cannabis business types 

 
Things to Know About Investing in the Cannabis Industry
 

Things to Know About Investing in the Cannabis Industry

All investments, including those made in the cannabis industry, come with some amount of risk. Generally, the higher the potential return of an investment, the higher the risk. There is no guarantee that you will actually get a higher return by accepting more risk.

When you invest in the cannabis industry, you’re exposed to different types of risk that can affect your potential return. Learn about these risks

 
Getting Information About Cannabis Investments
 

Getting Information About Cannabis Investments

If you are considering investing in a cannabis company, you should first take some steps toward researching the investment opportunity and considering how the investment will help meet your financial goals. Steps to make an informed investing decision

 
CSA Staff Notice
 

CSA Staff Notice

The Canadian Securities Administrators today published Staff Notice 51-357 Staff Review of Reporting Issuers in the Cannabis Industry. The purpose of this notice is to highlight good disclosure practices for companies in the cannabis industry so that investors are provided with transparent information about financial performance and risks and uncertainties, to support informed investing decisions.

 
7 Questions to Ask Before You Invest
 

7 Questions to Ask Before You Invest

Before you choose an investment, understand how it works and the risks involved. Ask yourself these 7 questions and be honest with yourself on how well you can answer them. Never invest in something you don’t understand. Learn more

 
Celebrity Endorsements
 

Celebrity Endorsements

Celebrity endorsements are increasingly common in today’s digital age, including for businesses in the cannabis industry. It's important to remember that a celebrity endorsement does not guarantee specific investment returns. You should also be aware that fraudsters may use a celebrity's image or likeness without permission to sell you fake investment opportunities. Learn more

 
TFSA Calculator
 

TFSA Calculator

Use our Tax-Free Savings Account (TFSA) calculator to estimate the value of the investments in your TFSA when you’re ready to withdraw them, and compare this amount to the value of your investments in a non-registered plan to see your overall estimated tax savings.

Visit GetSmarterAboutMoney.ca for many more tools and calculators to help you with your finances.

 
Non-GAAP financial measures
 

Non-GAAP Financial Measures

If you listen to investor presentations or read news releases from certain companies, you may come across terms that are sometimes called non-GAAP (Generally Accepted Accounting Principles) or non-IFRS (International Financial Reporting Standards) financial measures. Non-GAAP financial measures are disclosed outside of financial statements and present financial results differently – often in a more positive light.

The Canadian Securities Administrators, which includes the OSC, are currently consulting on a proposed rule regarding non-GAAP and other financial measures. Learn more about non-GAAP financial measures to understand what to consider if you are making investing decisions based on non-GAAP financial measures, and the risks associated with relying on this type of information.

 
Re: Investing
 

Ask Us An Investing Question

Investing and the investment world can be complex. Our Re: Investing website offers clear, unbiased answers to your questions about investing, from a trusted source. Here are some recent questions and our responses:

“What is a prospectus?”
“When is it better to save for retirement in a TFSA?”
“How much money do you need to start investing?”

 
OSC Telephone Townhall - October 10, 2018
 

Telephone townhalls are a way for the Investor Office to connect with thousands of Ontarians at a time. Telephone townhalls work much like a call-in radio show where OSC staff provide information, answer questions and conduct live polls over the course of one hour.

The next telephone townhall on October 10, 2018 is being held as part of Investor Education Month and will focus on how to spot some common investment scams. You can also ask OSC experts your investment and fraud-related questions. Free registration

 
 

CONSULTATIONS

 

Proposed Client-Focused Reforms

Comments due: October 19, 2018

The CSA published for comment proposed amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations and Companion Policy 31-103CP Registration Requirements, Exemptions and Ongoing Registrant Obligations (Client-Focused Reforms).

Learn more

 

Proposed rule regarding non-GAAP and other financial measures

Comments due: December 5, 2018

The Canadian Securities Administrators (CSA) published for comment Proposed National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure, which establishes disclosure requirements for issuers that disclose non-GAAP and other financial measures.

Learn more

 

Proposed rules to prohibit certain embedded commissions

Comments due: December 13, 2018

The Canadian Securities Administrators (CSA) published for comment a notice outlining proposed amendments that would prohibit investment fund managers from paying upfront sales commissions to dealers, and trailing commissions to dealers who do not make a suitability determination, such as order-execution-only dealers

Learn more

 

WARNINGS/ALERTS

 

Always know the 10 most recent OSC investor warnings and alerts by bookmarking this Fact Card or embedding it on your website or blog.

 

Payback Limited and Trans Atlantic Direct

The OSC is warning investors that Payback Limited appears to be involved in a scheme that targets former investors of Trans Atlantic Direct. Learn More

 

HQBroker

The OSC is warning investors that HQBroker is not registered to sell securities in Ontario. Learn More

 

Bristol Consulting FX

Bristol Consulting FX, also doing business as bristolconsultingfx[DOT]com is not registered in Ontario to engage in the business of trading in securities. Learn more

 

Caution urged for Canadians investing with crypto-asset trading platforms

The Canadian Securities Administrators (CSA) is urging Canadians to be cautious when considering buying crypto assets through trading platforms. Learn more

 

KEY DATES

 

Investor Office Telephone Townhall

October 10, 2018

Telephone townhalls are a way for the Investor Office to connect with thousands of Ontarians at a time. Telephone townhalls work much like a call-in radio show where OSC staff provide information, answer questions and conduct live polls over the course of one hour.

The next telephone townhall is being held as part of Investor Education Month and will focus on how to spot some common investment scams. You can also ask OSC experts your investment and fraud-related questions.

Free registration

 

OSC in the Community

OSC staff are taking the Commission's regulatory mandate from Bay Street to Main Street with seminars on preventing fraud and making informed investment decisions.

  • Cobourg - October 12, 2018
  • Toronto (Scarborough) - October 16, 2018
  • Burlington - October 18, 2018
  • Brampton - October 22, 2018
  • Ottawa - October 23, 2018
  • Ottawa - October 24, 2018
  • Timmins - October 25, 2018
  • Toronto (Scarborough) - October 26, 2018
  • Mississauga - October 29, 2018

Learn More

 
oscar - owl

Protect your money by knowing these 4 ways to avoid investment scams.

 
 
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