Relationship Disclosure Information
The Ontario Securities Commission requires that we provide all of our clients with this Relationship Disclosure Information (“RDI”) which is designed to help clients of AcreageWay Inc. (“AcreageWay” or “AcreageWay”) clearly understand the nature of the services that are provided by AcreageWay, and the necessary elements of satisfactory ongoing relationship.
AcreageWay is registered as an Exempt Market Dealer (EMD) for tokenized securities offerings in Ontario. AcreageWay sells exempt market securities over the internet through the AcreageWay platform (the “Platform”). The securities that AcreageWay sells are not offered by prospectus.
PRODUCTS AND SERVICES
AcreageWay presents a unique approach to real estate investment through its secure and convenient online Platform along with its commitment to a high standard of client care.
AcreageWay sells tokenized securities of related, unrelated or connected issuers who are investors in the commercial real estate market to individuals and corporations that can rely on an exemption provided under National Instrument 45-106 –Prospectus and Registration Exemptions (45-106), or other available exemptions, if applicable. AcreageWay provides disclosure on related and connected issuers through an issuer’s offering documentation and/or within the issuer’s profile on the Platform.
Members of the AcreageWay team may contact you to assist with requests like account opening, transfers, and other account maintenance/Platform-related issues.
It is important to be aware of the potential for risk inherent in investing in the capital markets. Generally, investments are not guaranteed. Factors that may affect the value of your investments include general economic factors; market and business conditions; fluctuations in securities prices, interest rates, and foreign currency exchange rates; changes in government regulations; and catastrophic events.
On a personal level, investment decisions should be based on what is appropriate for your circumstances. AcreageWay recommends an investment to you by examining your financial circumstances, risk tolerance and your investment needs and objectives.
Clients may or may not borrow to invest in a financial transaction. There are certain risks involved in using borrowed money to finance the purchase of a security. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines.
Generally, one should only borrow to invest if:
- a) You are comfortable with taking risk.
- b) You are comfortable taking on debt to buy investments that may fluctuate in value.
- c) You are investing for the long-term.
- d) You have a stable income.
As an Exempt Market Dealer, there are risks associated with exempt market securities some of which are listed herein below:
- Exempt market securities may not be listed on any stock exchange that could restrict your ability to resell them. There could be a lockup period that applies to the security that restricts you from trading, selling or transferring the security.
- Exempt market securities are generally not covered by deposit or investor protection insurance;
- Securities Regulators do not review offering memoranda for completeness;
- Private issuers are not subject to the same ongoing disclosure obligations as reporting issuers. Issuers of exempt market securities generally do not have to file a prospectus. (A prospectus describes the investment in detail and gives you some legal protections). Furthermore, non-reporting issuers are not obligated to publish financial information or notify the public of changes in its business.
- There is a risk that the issuer will be unable to meet interest and principal payments on its obligations on a timely basis.
- There are no assurances that an investment will maintain its net acquisition value or produce any projected income or capital return. Investment values can frequently fluctuate, and past performances may not be repeated.
Given the nature of AcreageWay’s business model, there are certain risk factors which can affect the value of a specific investment holding such as:
Real Estate Industry Investment Risk
Real estate investments are generally subject to varying degrees of risk depending on the nature of the property. Such risks include the highly competitive nature of the real estate industry, changes in general economic conditions (such as the availability and cost of mortgage funds), local conditions (such as the supply of office, industrial, retail space or warehousing or the demand for residential real estate in the area and thereby the prices at which serviced lots and parcels may be sold), government regulation and changes therein (such as planning, zoning, taxation of property and environmental legislation), changes in governments and the political environment in the applicable jurisdictions, competition from other available properties and the attractiveness of the property to potential purchasers, including builders. In addition, each segment in the real estate industry is capital intensive and is typically sensitive to interest rates and general economic conditions
Risks Associated with Real Property
All real property investments are subject to elements of damage and destruction such as fire, flood, and casualty as a result of natural disasters, criminal acts, or negligence that may result in significant losses for your investment holdings.
The risks highlighted above are not conclusive. Risk disclosures specific for each offering are reviewed by AcreageWay and are presented within the offering memorandum or other offering documents for the issuance.
Offering documents and the risks associated with the securities of an issuer contained therein should be reviewed thoroughly by an investor or an investor’s professional advisors before making any investment through AcreageWay.
KNOW YOUR CLIENT OBLIGATIONS (“KYC”) AND INVESTOR SUITABILITY
AcreageWay is obligated to ensure the proposed investment is suitable for you. To assess the suitability of proposed investments, AcreageWay will obtain information relating to your investment objectives, risk tolerance, investment knowledge and financial situation.
The cornerstone of our relationship with you is the Know Your Client Form (KYC Form).
We are required to establish the following information before we open an account for you:
- Your identity
- Whether you are an insider of a publicly traded company
- Your investment needs and objectives
- Your financial circumstances; and
- Your risk tolerance
Therefore, if there are any changes to your circumstances, please inform us.
As a registered firm, AcreageWay Inc. is required to be a member of The Ombudsman for Banking Services and Investments (OBSI). Please see the explainer below.
CLIENT’S ACCOUNT WITH ACREAGEWAY
A client’s account with AcreageWay is governed by the terms of the applicable offering documents relating to a specific AcreageWay investment product in which the client wishes to invest.
Fund’s belonging to the client that are held by AcreageWay are deposited into a trust account the RBC. Funds from registered accounts for the purpose of purchasing deferred plan eligible exempt market products will be held by a trust company that provides custodial services, such as Computershare Canada Inc. or Olympia Trust Company.
ACCOUNT FEES AND OPERATING EXPENSES
The fees applicable to any AcreageWay investment product are as set out in the offering documents related to that product. The offering documentation also describes the costs that may be charged to you, the client, as operating expenses (audit fees, legal fees, etc.). AcreageWay, acting in its capacity as an exempt market dealer, currently does not charge clients any fees for the operation of their account on the Platform. You will be notified of any changes in fees charged to you the Investor.
AcreageWay may enter into referral arrangements with affiliated or non-affiliated registrants and non-registrants, some of which are related registrants to AcreageWay, so that we may provide services and products to referred clients. We may pay a referral fee to the referrer. A referral fee is any monetary or non-monetary benefits provided for the referral. We negotiate the referral fee with the referrer. Any fees and expenses paid by referred clients remains the same regardless of any referral fee paid by AcreageWay to the referrer. We will inform all referred clients under a referral arrangement.
AcreageWay may also receive a referral fee for referring its clients to other service providers.
CONFLICTS OF INTEREST
Securities legislation in Ontario requires AcreageWay to make certain disclosures regarding conflicts of interest. This statement is to inform you of the nature and extent of conflicts of interest that might be expected to arise between AcreageWay and its clients. AcreageWay considers a conflict of interest to be any situation where the interests of a client and those of AcreageWay are inconsistent. AcreageWay takes reasonable steps to identify all existing material conflicts of interest and those that we would reasonably expect to arise. AcreageWay determines the level of risk for each conflict. AcreageWay avoids situations that would result in a serious conflict of interest that would be too high a risk for both its clients and market integrity.
The most common types of conflicts of interest that can occur are:
- Conflicts of interest between us and you; and
- Conflicts of interest between you and our other clients.
AcreageWay manages material conflicts of interest in three ways:
- Avoidance: AcreageWay avoids conflicts of interest that are prohibited by law, as well as any conflicts that cannot be effectively addressed other than by not engaging in the activity that would give rise to the conflict.
- Control: In AcreageWay’s judgment, the conflict of interest can be successfully managed, AcreageWay will so by restricting access to information and/or separating business functions.
- Disclosure: If AcreageWay is unable to avoid or control the conflict, then AcreageWay will disclose the conflict to clients appropriately. The clients can then assess the significance of the conflict in light of the services offered by AcreageWay and determine with AcreageWay whether and how to proceed accordingly.
Every director, officer or employee of AcreageWay shall conduct themselves in a manner consistent with the highest ethical standards. They will avoid any action, whether for personal profit or otherwise, that results in an actual or potential conflict of interest, or the appearance of a conflict of interest, with a client or which may be otherwise detrimental to the interests of a client.
USE OF PERFORMANCE BENCHMARKS
AcreageWay Inc. does not make use of benchmarks as the nature of the investments recommended do not correspond to any existing benchmarks.
AcreageWay delivers a trade confirmation when a client purchases or sells a security, setting out the following information:
- the quantity and description of the security purchased or sold;
- the price per security paid or received by the client;
- the commission, sales charge, service charge and any other amount charged in respect of the transaction;
- whether the registered dealer acted as principal or agent;
- the name of the dealing representative, if any, in the transaction;
- the settlement date of the transaction;
- if applicable, that the security is a security of the registrant, a security of a related issuer of the registrant or, if the transaction occurred during the security’s distribution, a security of a connected issuer of the registered dealer.
Additionally, AcreageWay delivers a client activity statement to clients on a quarterly basis, only if there was any activity in the preceding quarter.
The statements contain the following:
- the date of the transaction;
- the type of transaction;
- the name of the security;
- the number of securities;
- the price per security; and
- the total value of the transaction.
If you have a complaint about our services or a product, email us at: firstname.lastname@example.org or reach us by mail at:
Attn: Aditya Koparde, Chief Compliance Officer
300 – 2 Simcoe St S
Oshawa, ON, L1H 8C1
- what went wrong
- when it happened
- what you would like as a resolution
We will acknowledge your complaint in writing, as soon as possible, typically within 5 business days of receiving your complaint. We may ask you to provide clarification or more information to help us resolve your complaint.
Help us resolve your complaint sooner by:
- Make your complaint as soon as possible.
- Reply promptly if we ask you for more information.
- Keep copies of all relevant documents, such as letters, emails and notes of conversations with us.
We normally provide our decision in writing, within 90 days of receiving a complaint. It will include:
- a summary of the complaint
- the results of our investigation
- our decision to make an offer to resolve the complaint or deny it, and an explanation of our decision
If we cannot provide you with our decision within 90 days, we will:
- inform you of the delay
- explain why our decision is delayed, and
- give you a new date for our decision
You may be eligible for the independent dispute resolution service offered by the Ombudsman for Banking Services and Investments (OBSI).
You always have the right to go to a lawyer or seek other ways of resolving your dispute at any time. A lawyer can advise you of your options. There are time limits for taking legal action. Delays could limit your options and legal rights later on.
You may be eligible for OBSI’s free and independent dispute resolution service if:
- we do not provide our decision within 90 days after you made your complaint, or
- you are not satisfied with our decision
OBSI can recommend compensation of up to $350,000.
OBSI’s service is available to clients of firm. This does not restrict your ability to take a complaint to a dispute resolution service of your choosing at your own expense, or to bring an action in court. Keep in mind there are time limits for taking legal action.
You have the right to use OBSI’s service if:
- your complaint relates to a trading or advising activity of our firm or by one of our representatives
- you brought your complaint to us within 6 years from the time that you first knew, or ought to have known, about the event that caused the complaint, and
- you file your complaint with OBSI according to its time limits below
If we do not provide you with our decision within 90 days, you can take your complaint to OBSI any time after the 90-day period has ended. If you are not satisfied with our decision, you have up to 180 days after we provide you with our decision to take your complaint to OBSI.
Filing a complaint with OBSI
Telephone: 1-888-451-4519 or 416-287-2877 in Toronto
OBSI will investigate
OBSI works confidentially and in an informal manner. It is not like going to court, and you do not need a lawyer.
During its investigation, OBSI may interview you and the representatives of our firm. We are required to cooperate in OBSI’s investigations. OBSI can help you best if you promptly provide all relevant information, including:
- your name and contact information
- our firm’s name and contact information
- the names and contact information of any of our representatives who have been involved in your complaint
- details of your complaint
- all relevant documents, including any correspondence and notes of discussions with us
OBSI will provide its recommendations
Once OBSI has completed its investigation, it will provide its recommendations to you and us. OBSI’s recommendations are not binding on you or us.
OBSI can recommend compensation of up to $350,000. If your claim is higher, you will have to agree to that limit on any compensation you seek through OBSI. If you want to recover more than $350,000, you may want to consider another option, such as legal action, to resolve your complaint.
For more information about OBSI, visit www.obsi.ca