Exempt CIUs are only regulated to the extent that they must register with the CBB prior to being offered to investors; may only be offered to accredited investors; and are subject only to high-level disclosure and reporting requirements. They are not subject to any restrictions on their investment policies, as a result of which they may exhibit high risk characteristics, such as high levels of leverage and the taking of large speculative positions. Because of this, exempt CIUs may only be offered to a highly restricted investor base (i.e. those defined as accredited investors).