Investing in Canada

July 2, 2006 8:20 AM

Is there any legal way for a foreigner to invest in Canada through a Canadian financial advisor or investment manager?

I want to invest in the funds managed by Sprott Asset Management in Canada. They have a 250,000CDN minimum for Canadian accounts, which I can swing, but the 500,000USD minimum for international accounts is out of my reach for a while. SAM impresses me as having as having as good a feel for what is going on in investing now as anyone out there, plus they seem to see the coming energy crisis and potential related upheavals with clear eyes. Most of my investments now are in USD, and I worry about devaluation because of economic crisis or just the piper coming to collect on longstanding US habitual indebtedness.

All I really want to do is take care of my family as well as I can for the foreseeable future, but current events have convinced me that I have to diversify to do that. I would love to hear about any way to invest in SAM through a Canadian advisor, group or fund. Open to other options as well.

Other relevant info: Not a US resident, have discussed this with current advisor and they agree that they cannot offer what I am looking for.

Thanks much for any information.

TheOtherWay

posted by TheOtherWay to Work & Money (4 answers total)

I don't have an answer for your question, but for Things Money Related in Canada, I recommend contacting John Mott. He's an accountant, not specifically an investment advisor, but has has written books for investment advisors. He's well informed and if he can't answer your question, I'm sure he can send you in the right direction.

ps no need to sign your posts--the site does it for you
posted by dobbs at 9:55 AM on July 2, 2006

No idea about this specific fund, but you might ask the major bank-affiliated brokerages if they will invest your money for you in these funds. Royal Bank of Canada and Toronto Dominion Bank both have brokerages for their customers and US bank affiliates (RBC's is RBC Centura, I forget who TD's is but I know they have one).
posted by joannemerriam at 12:22 PM on July 2, 2006

I doubt that a Canadian advisor, group or fund will be able to help. They will be bound by the same rules as Sprott.
posted by yqxnflld at 1:57 PM on July 2, 2006

Okay here is a piece of advice if nobody can do any better.

You are really going to have to follow up on this advice, because I am not sure of the details or if I am completely correct. I am not a lawyer, accountant or a professional in a field that has expert knowledge on this issue.

I believe there is a quirk in Canadian law that allows a corporation the same rights as individual... the implication being that you could set up a Canadian corporation that would have the right to own this investment. Setting up a corporation is not that hard, it would likely cost you a few hundred bucks in legal and registration fees - this means a few things: paying taxes as a corporation, and holding things like "board of directors" meetings - the requirements and details are going to vary province to province.

If you can absorb a few hundred bucks you may want to talk to a lawyer to see if you can get set up and buy the investment through your corporation.
posted by Deep Dish at 2:57 PM on July 2, 2006