Office of the Superintendent of Securities

Frequently Asked Questions

How do I choose my financial adviser?

The Securities Office is not in a position to recommend a specific company or individual adviser to the public. In order to find out if a specific company or individual is registered, see our list of registered firms or individuals.  For general advice regarding how to pick an adviser, see our sections "Getting Started" and "Choosing your Financial Adviser".

How do I file a complaint about my investment adviser, broker or dealer?

Information regarding how to resolve disputes with your investment adviser and how to file a complaint with the Securities Office is available under "How to Make a Complaint".

How can I find out if someone is registered to trade or advise in securities in the Northwest Territories?

You may call our office at (867) 920-3318 for further information.

I am interested in taking a course on investing in securities, for my own benefit. Who do I contact?

Information on courses on investing in securities can be obtained from the Canadian Securities Institute and the Investment Funds Institute of Canada.

What is a "prospectus" and why should I read it?

Information on the prospectus is available at "The Prospectus - What it is and Why You Should Read it".

What are mutual funds? Should I invest in mutual funds?

Information on investing in mutual funds is available at "Mutual Funds - What You Need to Know".

My mutual fund salesperson is recommending that I buy hedge funds. What is a hedge fund? Should I consider buying in?

Typically, hedge funds are privately organized pooled investment funds that primarily invest in publicly traded securities and derivatives on publicly traded securities such as forwards, futures, options and swaps.

Hedge funds are much riskier than the typical mutual fund, having a much higher failure rate than traditional funds. In fact, many fail within three years of operation. Generally, hedge funds are only sold to those who can invest a very substantial minimum amount. Hedge fund investors are therefore predominantly institutions and wealthy individuals who can afford to carry a substantial loss in the event the fund fails.

Hedge funds are generally sold under exemptions to the prospectus requirements of securities legislation. In the Northwest Territories this typically will mean that an investor is required to invest a full $150,000 up front in the fund. Given the high level of risk inherent in these funds, the investment of $150,000 in one or more hedge funds is unlikely to be a suitable investment for many investors.

My investment adviser is recommending I buy securities that are offered under an "offering memorandum" rather than under a "prospectus". Should I consider buying these securities?

Securities offered under an offering memorandum are generally called "exempt product securities". This means that they are exempt from the requirement that a prospectus be filed before they are issued. The offering memorandum provides the investor with some information on the product, but is not as detailed as a prospectus and does not carry all the legal protections a prospectus carries. Certain exempt products carry significant risks for investors and are not suitable for most investors. For a full discussion of exempt products see "Exempt Products (Look Before You Leap)".