Banking on Corporate: What is a sophisticated investor?
Excerpt from "Banking on Corporate: What is a sophisticated investor?", Neill May, Canadian Lawyer
SECURITIES LAWS are in many respects consumer protection laws; but in that aspect, they are somewhat unique. For one thing, they are disclosure-oriented. Think of Health Canada as if it focused only on labelling, so food producers could put any poison in food or drink for public sale as long as the ingredients were clearly disclosed. Equally distinctively, securities laws create an elaborate framework to demarcate categories of persons who don’t require the consumer protection that it provides: It’s as if Health Canada went further and identified classes of cast-iron-stomached people who can digest anything and don’t need nutritional regulation at all or much reduced forms of it.