Regulatory information

National Bank Financial - Wealth Management complies with all of the securities regulations pertaining to its industry in Canada.

This section sets out the processes and policies we've created to regulate various situations and how they affect our services.

Statement of policies and conflicts of interest

Conflicts of interest and related parties

Securities regulations in Canada require all investment dealers to comply with rules regarding conflicts of interest. It's important that you know how we identify and respond to conflicts of interest, as well as how we minimize their impact.

What is a conflict of interest?

We consider a potential conflict of interest to be any circumstance in which our interests or the interests of our Investment Advisors or employees could be inconsistent or divergent with the interests of our clients or others who use our services.

We take reasonable steps to identify all existing material conflicts of interest, as well as those we would reasonably expect to arise. We then assess the level of risk associated with each conflict.

We avoid any situation that would create a serious conflict of interest or represent too high a risk for you or for the integrity of financial markets. In any other situation, we take appropriate measures to control the conflict. Where it cannot be avoided, we will notify you of any existing or potential material conflict of interest situations and any future material conflict of interest situations.

Conflict of interest situations

We could potentially be in a conflict of interest in our dealings with:

  • Issuers of securities
  • Related dealers and advisors
  • Other related companies
  • Our employees
  • Our clients

 

The following sections describe each of these potential conflicts and how we deal with them.

Issuers of securities

Sometimes we deal in the shares of companies or persons that are related or connected to us.

A company or person is a “related issuer” if:

  • The person or company is an influential security holder of NBF
  • We are an influential security holder of the person or company
  • Each of us is the related issuer of the same third-party securities

 

A company or person is a “connected issuer” if the issuer has a relationship with us that may lead a reasonable prospective purchaser to question whether we are independent from the issuer. This includes the issuer’s relationship with us, with one of our related issuers or with our directors, officers or partners or those of one of our related issuers.

As of January 10, 2019
, the following are considered our related issuers under Canadian securities legislation.

  • National Bank of Canada: National Bank of Canada is a bank incorporated under the Bank Act (Canada) and is a reporting issuer that indirectly holds 100% of the voting and equity shares of the Company.

  • Canadian Credit Card Trust II: National Bank of Canada is the administrator of this trust, whose securities are publicly distributed. Consequently, Canadian Credit Card Trust is deemed to be a related issuer.

  • NBC Asset Trust: This is a closed-end trust whose voting units are held entirely by National Bank of Canada. Consequently, NBC Asset Trust is deemed to be a related issuer.

  • NBI Funds: National Bank Investments Inc., a wholly owned subsidiary of National Bank of Canada, manages all NBI Funds (including the NBI Jarislowsky Fraser Funds, NBI Westwood Fund, NBI Portfolios, NBI Private Portfolios, NBI SmartData Funds and NBI SmartBeta Funds). Fiera Capital Corporation is the portfolio manager of most of the NBI Funds.

  • Investment Grade Managed Duration Income Fund: National Bank Financial Inc., which is one of the Agents and the Promoter, is an affiliate of a Canadian chartered bank that has been requested to provide the Fund with a loan facility or prime brokerage facility, the proceeds of which would be used by the Fund for various purposes, including purchasing additional securities for the Portfolio, purchasing units on the market, maintaining liquidity and funding redemptions. Consequently, the Fund may be considered a “connected issuer” of National Bank Financial Inc. under applicable securities legislation.

  • Meritage Portfolios: National Bank Investments Inc., a wholly owned subsidiary of National Bank of Canada, is the manager of the Meritage Portfolios. National Bank Trust Inc., a wholly owned subsidiary of National Bank of Canada, is the portfolio manager of all Meritage Portfolios. Certain Meritage Portfolios are classes of shares of National Bank Funds Corporation.

  • U.S. Banks Income & Growth Fund: National Bank Financial Inc., which is one of the Agents and the Promoter, is an affiliate of a Canadian chartered bank that has been requested to provide the Fund with a loan facility or prime brokerage facility, the proceeds of which would be used by the Fund for various purposes, including purchasing additional securities for the Portfolio, purchasing units on the market, maintaining liquidity and funding redemptions. Consequently, the Fund may be considered a “connected issuer” of National Bank Financial Inc. under applicable securities legislation.

 

When we deal with securities issued by our related or connected issuers, we may:

  • Act as an underwriter or selling group member in the distribution of the securities.
  • Sell the securities to, or on behalf of, our clients.
  • Purchase the securities from, or on behalf of, our clients.
  • Exercise discretionary authority to buy or sell the securities, with the written consent of the client.
  • Act as an advisor regarding the securities.
  • Make recommendations to buy or sell the securities.
  • Offer for sale securities, goods and services issued or provided by National Bank of Canada or another related issuer.
  • Work with National Bank of Canada or another related issuer to jointly offer the sale or purchase of securities, goods or services.
     

It is our policy to comply fully with all securities legislation. We make all required disclosures when acting as advisor, dealer or underwriter of the securities of National Bank of Canada and our other related or connected issuers.

Before advising you on the securities of a related issuer or taking part in the distribution of securities of a related issuer, we will inform you, verbally or in writing, about the relationship between the advisor and the issuer of the securities.

Before we exercise discretionary authority over the securities of a related or connected issuer, we give you a copy of the issuer’s current Statement of Policies. If necessary, we also obtain your specific and informed written consent to exercise such discretionary authority. In the provinces of Alberta, Ontario and Newfoundland and Labrador, we take these steps once every 12 months.

When we buy or sell securities with a subsidiary or affiliate, we ensure that the transaction price, along with any brokerage commission, is as good as or better than the price offered by an unaffiliated third-party broker in an arms-length transaction.

In addition, when dealing in the securities of related or connected issuers, we take your investment objectives into account.

As part of our business as an investment dealer, we may act as “agent” or “principal” while buying or selling on your behalf. In such instances, we will provide services in accordance with our normal practices and procedures and follow all relevant legislation and regulations.

Related dealers and advisors

Because of our affiliation with National Bank of Canada and its subsidiaries, we have put policies in place to deal with any potential conflict of interest, and to ensure we act in your best interests.

We are registered as an investment dealer and an indirect wholly owned subsidiary of National Bank of Canada. National Bank of Canada is also a major shareholder of the following dealers and advisors, meaning it directly or indirectly holds more than 10% of any class or series of voting securities:

  • National Bank Investments Inc.
  • National Bank Financial Inc.
  • National Bank of Canada Financial Inc.
  • NBC Financial Markets Asia Limited – in Hong Kong only
  • Natcan Trust Company
  • National Bank Trust Inc.
  • Nest Wealth Asset Management Inc.


We are therefore deemed to be related to such brokers and advisors. Although directors and officers may exercise functions at more than one of these companies, they operate as separate legal entities.

As part of our activities with the related dealers and advisors set out above, we may provide various reciprocal services (such as management and administration) and make client referrals.

These relationships are subject to the legal and regulatory requirements applicable to the securities industry. We've also adopted internal policies and procedures that complement these requirements, including an information security policy.

Other related companies

TMX Group Limited

National Bank Group Inc., an affiliate of National Bank Financial Inc. (NBF), owns or controls an equity interest in TMX Group Limited in excess of 5% of the issued and outstanding equity securities thereof, and has a nominee director serving on the board. NBF is an indirect wholly owned subsidiary of National Bank of Canada. From time to time, National Bank of Canada may enter into lending or financial agreements with companies that are the subject of research reports or that are recommended by NBF. At the present date, National Bank of Canada is a lender to TMX Group Limited. As such, NBF may be considered to have an economic interest in TMX Group Limited. No person or company is required to obtain products or services from TMX Group Limited or its affiliates as a condition of doing business with TMX Group Limited or its affiliates.

TMX Group Limited is also the limited partner of Alpha Trading Systems Limited Partnership. Alpha Trading Systems Limited Partnership owns Alpha Exchange Inc., a stock exchange in Canada for the trading of securities.

We can execute transactions on your behalf on Alpha Exchange Inc. and enter orders which cannot be immediately completed into the Alpha Exchange Inc. order book. In that role, we are subject to a number of regulatory obligations, including the requirement to diligently pursue the best price and best execution of each client order on the marketplace. Those obligations override the direct or indirect interest NBF has in the above companies.

 

Horizons Exchange Traded Funds family (Horizons ETFs)

NBF helped create a number of the Horizons ETFs by underwriting enough of the initial units to allow the ETFs to be listed and trade on certain exchanges. NBF is the “registered trader” for certain Horizons ETFs listed on the Toronto Stock Exchange and, as such, performs market maker functions in accordance with the rules of the Exchange. All securities listed on the Exchange have a dealer selected to perform this role which is intended to help keep the financial markets liquid.

NBF is one of several dealers selected by the Horizons ETF to be a “Designated Broker” and “Underwriter.” The purpose and function of these roles are described in the Horizons ETF prospectuses. The dealers acting in these capacities facilitate liquidity and make it easier for investors to buy and sell Horizons ETF units.

Acting as principal, National Bank of Canada, NBF and their affiliates may hold units in one or more Horizons ETFs either through direct investment in these units or by retaining units acquired through their market-making activities. We note that many of the Horizons ETFs offer alternative positions (“bull” or “bear”) for a given investment. National Bank of Canada, NBF and their affiliates, in their role as principal, can hold either of these positions based on their view of the market at any given time.

National Bank of Canada, NBF and their affiliates may provide credit, derivative investment products such as forward contracts, and other services to one or more of the Horizons ETFs. These products may form an integral part of the Horizons ETF. Further information regarding the types of products or services required by the Horizons ETFs may be found in the Horizons ETF prospectuses.

 

Fiera Capital Corporation

We retain the services of many portfolio management firms to act as sub-advisors for the range of discretionary managed investment products and services we offer.

The fees you pay for these products and services are determined by agreement between you and your Investment Advisor when you participate in one of our discretionary management programs. These fees compensate us and your Investment Advisor for the services provided, as well as the sub-advisor who chooses the investment vehicles for your products and services. The total compensation to be received by us and your Investment Advisor is, in part, influenced by the amount of compensation payable to the sub-advisor.

Fiera Capital Corporation (“Fiera”) is one of the sub-advisors we retain. National Bank of Canada (the “Bank”) is a significant shareholder in Fiera, and Fiera has agreed to provide its investment management services to us on favourable terms. As a result, the fees paid to Fiera by us for its services as a sub-advisor are generally lower than those charged by other arm’s length portfolio managers. Furthermore, the Bank has agreed to compensate Fiera, under certain circumstances, if the overall value of the assets it manages for the Bank and its subsidiaries falls below a specific level. However, the Bank and its subsidiaries, including NBF, are not required to hold a minimum value of assets managed by Fiera.

Given our relationship, we may be seen to have an economic incentive to offer investment products and services managed by Fiera. In addition, your Investment Advisor has an economic incentive to recommend investment products and services for which Fiera is a sub-advisor over products and services offered to you by other sub-advisors because the compensation your Investment Advisor receives will generally be higher.

If you would like further details on the fees payable to independent sub-advisors for the investment products and services you are considering, please contact your Investment Advisor.

Under applicable regulatory requirements, your Investment Advisor must always ensure that the products or services recommended to you match your investment objectives and risk tolerance.

 

Our employees

In the normal course of their activities, our directors, officers, employees, representatives and agents may find their personal interests are in potential conflict with those of a client.

We have developed a Code of Professional Conduct, a Compliance Manual and internal policies. Among other things, these documents state that our employees must never put their own interests ahead of their responsibilities toward clients or NBF. These documents also reinforce the fact that any material conflict of interest must be addressed in a manner that is fair, equitable, transparent and consistent with clients’ best interests.

Here are some highlights from these documents:

  • Confidential information: Our employees are prohibited from using confidential information gained in the course of their duties for their personal benefit or for the benefit of a third party. This includes information related to clients, transactions or client accounts. Our employees may not exploit any situation to obtain an advantage of any kind.
  • Gifts, entertainment and compensation: Employees are prohibited from accepting gifts, entertainment or compensation that could influence the decisions they make in the course of performing their duties. Employees can not accept any form of compensation without our prior approval, other than their pay. We ensure that our employee compensation practices do not conflict with employees’ obligations toward our clients.
  • Other business activities: Employees are prohibited from engaging in activities that could interfere or be in conflict with their duties. We will not permit any employee to engage in business activities outside the scope of their duties without first ensuring that these activities do not compromise our clients’ interests or harm our own reputation or that of the industry. We would also consider an employee to be in a potential conflict of interest if they were designated as a beneficiary of a client’s estate or otherwise inherited from a client’s estate.
  • Client best interests: The interests of clients must always be given priority over those of NBF and its employees. When we receive two orders for the same security at the same or better price, we always execute the client’s order before our order or our employee’s order. This also means that the Investment Advisor has an obligation to choose the best investment for a given client, even if it is an investment that directly competes with our offerings. No Investment Advisor is authorized to make recommendations solely for the purpose of generating revenue or promoting in-house investments if such recommendations are not in the client's best interest.
  • Referrals: On occasion, third parties may refer clients to us for our products and services. We or our Investment Advisors may also refer clients to third parties. When these referrals involve a commission, the commission must comply with existing regulations, and we must notify the referred client about the commission and share any other relevant information. This allows the client to make an informed decision about the referral and to consider any potential conflicts of interest.
  • Corporate financing, advisory and research activities: We offer corporate financing, research and investment advisory services for a fee. We have established procedures and policies to avoid conflicts of interest and to protect the confidentiality of privileged information. In addition, our departments involved in advisory and research activities are physically isolated from all our trading activities.
  • Underwriting and market-maker activities: In some cases, we may act as an underwriter, meaning we administer the public issue and distribution of securities. We may also act as a market maker, which means we hold an inventory of securities and use it to quickly complete buy and sell orders. In some cases, the interests of the parties we work for can differ from the interests of our clients. Regulations govern the various roles we play. In a case of conflict, we are required to abide by the applicable legislation and regulations. We will always give the client’s interests priority over our own interests.
  • Policy respecting the allocation of securities: We apply a policy to control the division of securities among our clients when there are not enough securities to meet the demand. This policy is intended to ensure fair distribution of securities.
  • Brokerage commissions: We charge brokerage fees when an Investment Advisor exercises discretionary power by trading investments on behalf of a third party. Examples include transactions carried out for an investment fund or for an account under discretionary management. We adhere to requirements intended to ensure that the brokerage fees are proportionate to the services the client receives.
  • Private placements and personal investments: Employees who wish to participate in a private placement, as a buyer or promoter, must first go through our authorization and verification procedure to avoid or supervise any conflicts of interest. Our employees’ personal investments are also subject to our policies and supervision.
  • Discretionary management: We offer discretionary management services to our clients. In some instances, the securities making up the portfolios under management may also be held by some of our employees, officers or directors, or may come from our related or connected issuers. Our discretionary management services must comply with the applicable legislation and regulations.
  • Compensation: We are compensated for the business we do with our clients. The compensation varies depending on the product and the compensation agreed on with clients and third parties. Here are some examples of how compensation could lead to a conflict of interest, and how we avoid such conflicts:
  • Currency and interest rates: On occasion, we may be compensated indirectly. For example, in a foreign currency exchange, we may receive compensation based on the difference between the price our clients pay for the currency and the price we pay for the same currency. We could also be compensated based on the difference between the interest rate we receive on invested funds and the interest rate actually paid to our clients.
  • Exchanges: We may receive compensation based on the exchange we use to carry out our client transactions. Regulations govern the conditions under which we carry out our client transactions.
  • Over-the-counter securities: We may receive compensation for the purchase or sale of over-the-counter securities. These investments are traded outside of traditional stock markets. We mark up the final price clients pay when they buy these securities, and mark down the final price clients receive when they sell these securities.
  • Compensation for Investment Advisors: Investment Advisors qualify for different types of incentives, such as trips or bonuses, when the revenue they generate crosses a certain threshold. We prohibit Investment Advisors from making recommendations solely for the purpose of generating revenue without any benefit to the client. We have a comprehensive oversight program in place to monitor Investment Advisors and ensure that any recommendations they make are suited to the client’s investment objectives, time horizon, risk tolerance, investment knowledge and overall financial situation.
  • Fee- or commission-based accounts: There may be periods when it would be cheaper for clients to pay a commission per trade instead of a fee based on the assets they hold. Investment Advisors must always ensure that clients are being charged appropriately based on their needs.
  • Proxy voting: Your Investment Advisor may ask whether you intend to vote on a specific matter or question pertaining to the securities you hold. Your Investment Advisor may even recommend you vote in a specific manner. In some cases, the issuer or another party may pay us or your Investment Advisor to ask for your vote or proxy in their favour. We always ask our Investment Advisors to disclose any compensation they or we receive in these cases. Our policy is that any recommendation the Investment Advisor makes must be in the best interests of the client.
  • Transaction between two clients: In some circumstances, we may have one client who wants to buy a security through us and another client who wants to sell the same security through us. Our policy is to ensure that we make such transactions at fair market value. Neither we nor our Investment Advisors are authorized to favour one client over another. Regulations and our policies require Investment Advisors to make only suitable investment recommendations to clients.
  • Margin accounts and investment loans: Clients pay interest on margin accounts and investment loans, as well as additional fees or commissions when we invest the amount borrowed. This benefits us, as well as the Investment Advisor or related company that grants the loan. Any investment recommendation made by the Investment Advisor must be suitable for the client.

Other conflicts of interest

Other potential or actual conflicts of interest may arise. We will continue to take the necessary steps to identify and respond to such situations fairly and reasonably, and update our policies as required. Any material conflicts of interest that cannot be avoided will be disclosed to you as they arise.

Referring clients among companies in National Bank's group

NBF and other companies in National Bank's group may refer clients to each other according to the needs of each client, provided the client has given us their consent. If one member of National Bank's group does not offer services that a client needs, that member will refer the client to a member of the group that does. An example of a common referral is when National Bank refers a client to us to open a brokerage account.

Some business units in National Bank's group, including NBF, are registered under securities legislation. If you are referred to a business unit for a product or service that requires securities registration, that business unit takes responsibility for all activities that require registration. For example,, if you were referred to NBF by National Bank for an investment transaction, NBF would be responsible for everything pertaining to that transaction.

Referral agreements with companies in National Bank's group

NBF has entered into referral agreements with the companies in National Bank's group, as set out below. NBF and the companies set out below are separate entities, but are all direct or indirect wholly owned subsidiaries of National Bank. Each company holds the legally required registrations for the services it offers.

  • National Bank is a federally chartered bank, which offers a full array of banking services, including corporate and investment banking. It is an active player on international markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management, as well as mutual fund and retirement plan management.
  • National Bank Financial Inc. (NBF Inc.) is registered as a securities broker in all provinces and territories of Canada. NBF Inc. offers retail advisory and brokerage services that include institutional brokerage, investment banking, corporate finance and securities clearing services for third parties. As well, its discount brokerage services (execution orders only) are provided under its trademark National Bank Direct Brokerage (NBDB), and other administrative and trading services (custody, clearing, account statement production, account opening management) are provided under its National Bank Independent Network (NBIN) trademark.
  • Private Banking 1859 is a trademark used by NBF and other companies in National Bank's group. It was created for individuals and families with substantial financial assets who wish to ease the burden of managing their wealth on a day-to-day basis. These clients understand the benefits of entrusting this task to professionals. Its business model is to provide a complete, integrated offering.
  • National Bank Insurance Firm Inc. is an indirect wholly owned subsidiary of National Bank. National Bank Insurance Firm Inc. offers a variety of insurance products and services, such as life insurance, disability insurance, critical illness insurance and other insurance products for individuals and businesses.
  • NBF Financial Services Inc. and NBF Financial Services Ltd. (together, “NBFFS”) are wholly owned subsidiaries of NBF. NBFFS offers a variety of insurance products and services, such as life insurance, disability insurance, critical illness insurance and other insurance products for individuals and businesses.Nous sommes donc reliés à ces courtiers et conseillers. Bien que les administrateurs et dirigeants de ces sociétés puissent exercer des fonctions dans plus d’une de ces sociétés, celles-ci sont exploitées en tant qu’entités juridiques distinctes.

Referral fees

When we refer a client to another company in the National Bank group, or when another member of the group refers a client to us, one company generally pays the other a commission.

It is important to note that these referral agreements do not increase the costs or fees of client services. Therefore, the client will not pay more as a result of any referral agreement between us and other companies in the National Bank group.

The commissions give us and other companies in the group incentive to refer clients to each other. The commissions will vary depending on which company in the National Bank group is involved and whether the client is referred to or by us.

We and the other companies in the National Bank group have adopted policies and procedures to help identify any material conflict of interest which may arise from these referral agreements. We will not be involved in or made aware of your specific dealings with other companies in the National Bank group, other than in reference to any referral fees generated, as well as any specific authorization you may grant companies in the National Bank group in your account opening form.

The referral commissions we and other companies in the National Bank group share may be modified from time to time, in accordance with the referral agreements we may enter into with one another. In such cases, the list of referral agreements and the information pertaining to the referral commissions will be updated and made available for consultation on the NBF website.

Best Execution Public Disclosure Statement

Client referrals

Notice to Clients Referred Between NBF and Other Members of National Bank Financial Group

NBF and members of National Bank Financial Group will, from time to time, refer clients to each other. The members of National Bank Financial Group promote the referral of clients between each other in accordance with the needs of the client. A referral may arise for example where a specific member of National Bank Financial Group does not offer certain services that a client needs but another member of National Bank Financial Group does and the client is referred to that other member of National Bank Financial Group for those services. An example of a common referral is when National Bank refers a client to NBF for purposes of establishing a brokerage account.

If a client is referred to a member of National Bank Financial Group that is registered under securities legislation, such as NBF, the referred member of National Bank Financial Group is responsible to the client for the activities that require registration such as the know-your-client and suitability obligations.

Members of National Bank Financial Group participating in referral arrangements with NBF

A brief description of the members of National Bank Financial Group that NBF enters into referral arrangements with from time to time, and the general nature of the services each provides is set out below. Each of NBF and the other members of National Bank Financial Group listed below are completely separate from each other, but are all wholly owned, direct or indirect, subsidiaries of National Bank. Each member of National Bank Financial Group offers its clients a different range of services, such as discretionary portfolio management services, high networth client services, direct brokerage services and insurance services for which each hold the appropriate registrations under the applicable legislations including, if required, the applicable securities laws.

National Bank is a federally regulated bank that offers a full array of banking services, including corporate and investment banking. It is an active player on international markets and, through its subsidiaries, is involved in securities brokerage, insurance, wealth management, as well as mutual fund and retirement plan management.

National Bank Financial Inc. is registered as an investment dealer in all Canadian jurisdictions. NBF is a full service securities dealer that is a truly integrated firm, combining retail advisory, brokerage services and discount securities brokerage services with institutional brokerage, investment banking, corporate finance and securities clearing services for third parties.

Private Wealth 1859, is a trademark used by NBF and other members of National Bank Financial Group and has been created for individuals and families with substantial financial assets who wish to free themselves from the burden of managing their wealth on a daily basis and understand the benefits that can be derived by entrusting this task to professionals. Its business model is designed as a complete, integrated offering.

National Bank Insurance Firm Inc. is an indirect wholly-owned subsidiary of National Bank. National Bank Insurance Firm Inc. offers a variety of insurance products and services such as life insurance, disability insurance, critical illness insurance and other insurance products for individuals and businesses.

National Bank Financial Financial Services Inc. and National Bank Financial Financial Services Ltd. (“NBFFS”) are wholly-owned subsidiaries of NBF. NBFFS offer a variety of insurance products and services such as life insurance, disability insurance, critical illness insurance and other insurance products for individuals and businesses.

Referral fees

The referral arrangements that NBF enters into from time to time with other members of National Bank Financial Group under which NBF may refer its clients to or may receive a referral from the members of National Bank Financial Group are in exchange for the sharing of commissions. It is important to note that these referral arrangements will not increase the costs or fees pertaining to the services provided to a client. Therefore, the client will not pay higher fees as a result of any referral arrangements that are entered into by NBF with another member of National Bank Financial Group. However, the commissions shared by NBF with another member of National Bank Financial Group give NBF and such other member of National Bank Financial Group incentive to refer a client to each other. The commissions will vary depending on the other member of National Bank Financial Group involved and whether the client is referred to or by NBF.

The referral commissions that could be earned or paid by NBF through referral arrangements with other members of National Bank Financial Group are as follows. For information purposes only, one basis point is equivalent to 0.01% (1/100th of a percent).

1- For referrals of clients to Private Wealth 1859 National Bank

Private Wealth 1859 pays to National Bank 30% of the total gross revenue generated by the referred account during the first year

2- For referrals of clients to National Bank from NBF

National Bank pays to NBF 20 basis points of the amount referred, subject to a maximum of $15,000.00 for referrals made to Commercial Banking.

3- For referrals of clients to NBF from National Bank

NBF pays to National Bank 16.5 Basis Points of the amount referred annually for 5 years.

4- For referrals of clients to National Bank Insurance Firm Inc. or NBFFS from NBF

National Bank Insurance Firm Inc. or NBFFS pays to NBF, as the case may be, 50% of the total revenue received by it from the insurance company with respect to the transaction, including a renewal amount which will vary based on the product and the insurance company involved.

5- For referrals of clients to National Bank (Banking Center) from NBF

National Bank of Canada pays to NBF the following basis points based on the product and the amount involved.

Product Loan term or amount required Commission paid to NBF
Mortgage loan Single payment depending on amount disbursed 1 year 15 basis points
  2 years 20 basis points
  3 years 25 basis points
  4 years 30 basis points
  Variable 35 basis points
All-in-One Single payment if the authorized limit > or = $50,000 $500
and
  Annual commission based on volume used 
10 basis points
Line of credit Cash surrender value loan
Single payment if the authorized limit > or = $100,000 $100 
or
  Annual commission based on volume used if > $100,000
20 basis points
Personal line of credit Personal loan Single payment on the amount disbursed (maximum $1,000)
20 basis points, maximum, $1,000 

Other important information

NBF and the members of National Bank Financial Group have adopted policies and procedures to assist them in identifying and responding to any material conflicts of interest that may arise from these referral arrangements. NBF will not be involved in or aware of your specific dealings with the other member of National Bank Financial Group, other than in reference to any referral fees generated as well as any specific authorizations that you may grant the member of National Bank Financial Group in your account opening form or otherwise to enable it to continue to offer you its services.

The referral commissions NBF and the members of National Bank Financial Group are sharing may be modified from time to time in accordance with the referral arrangements NBF and the members of National Bank Financial Group may enter into with one another. In such cases, the list of referral arrangements and the information respecting the referral commissions will be updated and available for consultation on the NBF Internet site.

Performance benchmarks

Comparing the return on your portfolio to an appropriate benchmark can be very useful in tracking the performance of your investments. Such comparisons can help you understand if your investment strategy is having the desired results or if you need to make some changes. Investment benchmarks also help establish reasonable expectations concerning your portfolio's long-term returns.

Such benchmarks generally measure returns generated by specific asset classes over a given period. The most common method used to measure the performance of an investment is to benchmark returns with broad indexes, such as stock or bond indexes. To ensure the comparison is meaningful, a benchmark index should be as close as possible to the security or portfolio you want to track. Benchmarks include the S&P/TSX for Canadian equities, the DEX Universe for Canadian bonds and the S&P 500 for U.S. equities. For a portfolio made up of several asset classes, the appropriate benchmark would be a combination of indexes weighted based on the portfolio's asset allocation.

For more information on comparing your portfolio's return to a benchmark, feel free to contact your Investment Advisor.

Interest rates on cash balances

Credit balances

All accounts

  Canadian Dollar Accounts 1
American Dollar Accounts 2
All credit balances
Prime rate 
- 3.90 %
U.S. Prime rate
- 5.40 %

Debit balances

Cash and registered accounts

  Canadian Dollar Accounts 1
American Dollar Accounts 2
Tous les soldes débiteurs
Prime rate
+ 7.00 %
Prime rate
+ 7.00 %

Margin accounts

Debit Balances Canadian Dollar Accounts 1
American Dollar Accounts2
$0 - $49,999
Prime rate
+ 1.50%
U.S. Prime rate
+ 1.50%
$50,000 - $99,999
Prime rate
+ 1.25%
U.S. Prime rate
+ 1.25%
$100,000 and over
Prime rate
+ 1.00%
U.S. Prime rate
+ 1.00%

Minimum interest: $5,00 (credit and debit)

1 The Prime rate refers to National Bank of Canada Prime Rate.

2 The U.S. Prime rate refers to Federal Reserve Rate.

Head office

National Bank Financial Inc.’s Head Office

Pursuant to the regulations in effect, National Bank Financial Inc. must notify you of the following:

The head office of National Bank Financial Inc.(NBF Inc.) is located in the province of Quebec.

Herein below you will find the names and addresses of the NBF Inc. agents for service of process in the provinces and territories where NBF Inc. does not have business locations:

Nunavut
Chandler & Cooper
C/O Susan Cooper
203 - 626 Tuniit Plaza
P.O. Box 2021
Iqualuit (Nunavut) X0A 0H0

Newfoundland
Stewart McKelvey Striling Scales
C/O Lewis B. Andrews
Cabot Place
1100 – 100 New Govers Street
St-John's, NFLD, A1C 5V3

Northwest Territories
Lawson Lundell, LLP
C/O Keith Bergner
200 – 4915, 48th Street
P.O. Box 818
Yellowknife, NT, X1A 2N6

Yukon
MacDonald & Company
C/O Grant MacDonald
200 - 204 Lambert Street
Whitehorse, YT, Y1A 3T2

Prince Edward Island
Stewart McKelvey Stirling Scales
65 Grafton Street
P.O. Box 2140
Charlottetown, PEI, CIA 8B9

Declaration of trust and addendums

Protecting your wealth

Our partnerships protect you

To protect your assets, you need to do business with a solid and reliable financial institution. Clients of National Bank Financial Wealth Management can count on our vast investment experience, as well as our long-standing reputation for financial strength, credibility and reliability.

As a member of the Investment Industry Regulatory Organization of Canada (IIROC), National Bank Financial Wealth Management is covered by the Canadian Investor Protection Fund (CIPF). The CIPF protects you in the unlikely event that National Bank Financial Wealth Management should become insolvent. It offers coverage up to:

  • $1 million for all general accounts
  • $1 million for all retirement accounts combined (RSPs, RIFs, LIFs and locked-in RIFs)
  • $1 million for all education savings plans

To learn more about this coverage, contact the Canadian Investor Protection Fund at:

79 Wellington West
Suite 610, P.O. Box 75
Toronto, Ontario M5K 1E7
Toll Free: 1 866 243-6981
E-mail: info@cipf.ca
Internet: www.cipf.ca

That's not all! Fixed-income securities, such as bonds, stripped coupons and T-bills, guarantee a minimum return and value at maturity. For securities issued by a government or government agency, this guarantee is unconditional and unlimited.

In addition to this coverage, one of the best ways to safeguard your assets is by choosing a solid financial institution. National Bank Financial Wealth Management is a subsidiary of National Bank of Canada, one of Canada's strongest institutions, which has been serving investors for over 150 years.

FATCA

Foreign Account Tax Compliance Act

On July 1, 2014, the Government of Canada added provisions to the Income Tax Act  to prevent tax evasion by U.S. persons. Under these provisions, Canadian financial institutions are required to identify and disclose information on accounts held by "U.S. persons" to tax authorities, annually.

Learn more

What is CRS-FATCA?

CRS-FATCA refers to the Foreign Account Tax Compliance Act (« FATCA »), an American law, and to the Common Reporting Standard (« CRS »), an international standard, whose principles have been integrated into the Canadian Income Tax Act.

The objective of these regulatory obligations is to fight tax evasion. To do this, financial institutions, including the National Bank, its subsidiaries and foreign centers (“the Bank”) must collect and report to the Canada Revenue Agency (“CRA”) certain information with respect to accounts they hold where the account holders are foreign residents for tax purposes. This reporting is done on an annual basis and the information collected must be constantly kept up to date in case of changes.

Mutual funds

Mutual funds

Are you buying mutual funds?

Since May 1, 2016, your investment advisor has had to give you a Fund Facts document before your purchase of mutual funds. Your transaction cannot be completed until your investment advisor gives you this document. There are some exceptions, which your investment advisor can discuss with you. These changes are not exclusive to National Bank Financial Wealth Management; they've applied to the entire industry since the end of May 2016.

Why the change?

Receiving the Fund Facts document before completing the transaction gives you adequate time to read about the fund you want to purchase.

How are Fund Facts sent?

The Fund Facts document will be given to you in person or sent by email, mail or fax, as chosen by you and your investment advisor. Don't hesitate to contact them for more information on this topic.

What's the Fund Facts document?

The Fund Facts document contains important information on the mutual fund you would like to invest in. There's a specific Fund Facts document for each mutual fund with information on the securities it includes, returns, risks and fees. You should always read the Fund Facts document when you invest in a mutual fund so you're familiar with its main features.

To learn more about this change, please contact your investment advisor.