Your investing questions, our clear answers.

Our response:

Because hedge funds are typically sold to investors under a prospectus exemption, not everyone can invest in hedge funds. There are rules about who can invest in hedge funds in Ontario. Typically, individual investors must qualify as accredited investors. Companies can also invest as accredited investors.

In addition, not everyone can sell hedge funds. Check the registration of the person offering hedge funds before you invest.

Learn more about hedge funds on GetSmarterAboutMoney.ca.

If you are unsure of the exempt market rules related to a product you are considering, or the registration of an individual or firm offering the product, contact the Ontario Securities Commission’s Contact Centre for more information.