No Offering Memorandum - No Prospectus Required Source Identifier Trademark


Source Identifier Trademark

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.

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What are Offering Memorandums - Prospectus?

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Keeping it Simple: PEMI® Safety through Simplicity™

In accordance with the PEMI® Safety through Simplicity™ Investing Principle, in Canada and other countries, investing in non-bank, non-institutional, non-syndicated, non-regulated or regulatory exempt, free trading securities and related financial instruments; also known as Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow securities and related financial instruments secured by real estate (private equity mortgage transactions (PEM®)) is considered by financial regulators as being comparatively simple and low risk. It is for this reason PEM® designated transactions are not subject to same level of regulatory scrutiny and rigorous, higher-level investment disclosure documents, namely prospectus or offering memorandum requirements found in other investor markets, namely, the public capital markets.

In Canada, in the Ontario Securities Commission "A GUIDE FOR INVESTORS" publication (Source 1; Source2); excerpts:

    • What are disclosure documents?
      • The OSC requires public companies to file documents such as annual information forms, annual and quarterly financial statements, MD&As, management information circulars, material change reports and prospectuses. They contain information that helps investors assess the company's management, products, services, finances, its future prospects and risks. Together, these documents are referred to as "disclosure documents".
    • The fact that a company files documents with the OSC does not make the company immune from fraud or mean it is a "good" investment. You still need to carefully choose your investments and who you deal with.
    • Investment Funds & Structured Products
      • If an investment fund wants to distribute securities to the public, it must begin by filing a preliminary prospectus.
    • Simplified Prospectus for Conventional Mutual Funds
      • Generally, a conventional mutual fund is an investment fund that offers securities that are redeemable on demand by investors for a proportionate interest of the mutual fund’s net assets. These securities are offered continuously and are not listed on a stock exchange. Conventional mutual funds include most mutual funds offered by banks and mutual fund companies.
      • In order to sell securities to the public, National Instrument 81-101 Mutual Fund Prospectus Disclosure (NI 81-101) requires a conventional mutual fund to prepare and file:
        • a simplified prospectus,
        • an annual information form (AIF), and
        • a Fund Facts document for every class or series of a mutual fund.

If you have read a prospectus or offering memorandum with your lawyer or capital markets investment advisor, you will note that investments into opportunities that warrant a higher level disclosure document take away your control as an investor and the yields for such investments are subject to a comparatively greater degree of risk than an equivalent dollar invested in a PEM® transaction. See Risk Section of the PEMI® website.

Risk vs Return: Keep It Simple; Why Complicate Your Investment Life?

According to Credit Suisse, the average returns from the Canada and USA public market real equity returns are:

    • 6.4% between 1900 and 2018
    • 5.3% between 1969 and 2018
    • 2.9% between 2000 and 2018


PEM® Non-Bank, Non-Institutional, Non-Syndicated, Non-Regulated or Regulatory Exempt, Free Trading securities and related financial instruments; also known as Peer-to-Peer (P2P)/Private/Crypto/Secret/Shadow securities and related financial instruments secured by real estate Investment Yields at MortgageQuote Canada Corp., average interest rate returns in Year 1 is:

    • 9.90% for First Mortgages
    • 16.33% for Second Mortgages
    • 19.53% for Third Mortgages

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PEMI® Charter-holder & Licensed Member Market Regulation

Pursuant to the PEM® Institute Charter-holder and Licensed Member Market Regulations, all PEMI® members and fellows are required to only act in transactions that do not require the use of a higher level disclosure documents offering memorandum or prospectus.

Learn more about the PEM® Institute Market Regulation for Charter-holder and licensed members.