Market Regulation

Prohibited Transactions

The PEM® Institute prohibits its members from the marketing, trading or otherwise involvement of high-risk investment structures including:

Pooled/Syndicated/Structured Transactions

ABS - Asset Backed Securities

CDO - Collateralized Debt Obligations

CMO - Collateralized Mortgage Obligations

MBS - Mortgage Backed Securities - (all types)

Offering Memorandum - Prospectus Transactions

Any mortgage investment entity that legally requires an accompanying public disclosure document by a securities commission, namely

Offering Memorandum

A Private Placement instrument for Raising Capital in Private Markets (Source)

• • The offering memorandum exemption allows an issuer to sell its securities to anyone, regardless of their relationship, wealth or the amount of securities purchased. (Source)

Prospectus

A Public Offering instrument for Raising Capital in Public Markets. (Source)

• • Reporting (public) issuers can raise capital from members of the public through prospectus offerings of debt and equity securities. The following policies and instruments describe requirements for public offerings. (Source)

• As the [Ontario Securities] Commission held in Re Limelight (2008), 31 OSCB 1727 at para. 139, a prospectus is fundamental to the protection of the investing public because it ensures that investors have full, true and plain disclosure of information to properly assess the risks of an investment and make an informed decision. Source

Source Identifier Trademark: "No Offering Memorandum - No Prospectus"

No Offering Memorandum - No Prospectus

A source identifier trademark developed by the Private Equity Mortgage Mortgage Institute (PEMI)®.

 Tells the general public that the transactions are comparatively simple and therefore not subject to regulatory oversight by government.

"No Offering Memorandum - No Prospectus" helps to mitigate Complexity Risk. Learn more

NOTICE: THIS IS NOT LEGAL ADVICE OR SECURITIES ADVICE. See a lawyer.