Balance

Transcription

Balance

Balance
Your Financial Requirements
Building Better Secure Lives
BBSL.ca
YOUR ACCOUNT WITH BBSL DISCLOSURES
A Client Relationship Handbook for Clients with Accounts at
Burgeonvest Bick Securities Limited
Please retain this document as your reference guide to your dealings
with BBSL, including your rights and responsibilities.
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TABLE OF CONTENTS
ENGAGEMENT SUMMARY, RELATIONSHIP DISCLOSURES, ENHANCED
SUITABILITY, & CONFLICTS OF INTEREST ................................................................. 3
How You Pay BBSL ....................................................................................................... 4
Your Relationship with BBSL ....................................................................................... 4
BBSL Makes No Tax Advice Representations ........................................................... 5
Understanding when BBSL uses 3rd Parties and how they are Paid .................... 5
Enhanced Suitability Supervision of Your Relationship with BBSL ........................ 5
What is Enhanced Suitability? ..................................................................................... 6
Conflicts of Interest between You and BBSL ............................................................ 6
Complaints You may have about BBSL or our Advisors ......................................... 6
Leverage Disclosure ..................................................................................................... 7
Services Provided to You and BBSL Compensation Disclosure ................................. 8
Services Provided to Client Accounts and Applicable Fees .................................... 8
CONFLICTS OF INTEREST DISCLOSURE .................................................................... 11
PERFORMANCE REPORTING DISCLOSURE ................................................................ 23
STRIP BOND DISCLOSURE ....................................................................................... 25
PRIVACY AGREEMENT ............................................................................................... 26
WHY IIROC MATTERS TO YOU, THE INVESTOR BROCHURE ............................. 27
IIROC AN INVESTOR’S GUIDE TO MAKING A COMPLAINT BROCHURE............ 28
CIPF BROCHURE ......................................................................................................... 29
BBSL COMPLAINT HANDLING POLICY LETTER ..................................................... 30
Burgeonvest Bick Securities Limited - June, 2014
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CLIENT RELATIONSHIP MODEL (“CRM”) DISCLOSURES
ENGAGEMENT SUMMARY, RELATIONSHIP DISCLOSURES, ENHANCED
SUITABILITY, & CONFLICTS OF INTEREST
You have opened an investment account with Burgeonvest Bick Securities Limited (“BBSL”). In
the process you have been inundated with documents which may be confusing and at a
minimum are voluminous. To help you navigate and understand the relationship you have
entered into with BBSL, we provide you with this summary document.
You have completed and signed a New Account Agreement (“NAA”) with BBSL. Among a number
of things, this contract defines the terms and conditions under which you engage BBSL to act as
your agent to provide you with investment advice, services and execution of investment purchase
and sale transactions. The NAA is the primary contract that governs your account. Please review
it carefully to ensure that you have made no inadvertent misrepresentation in that contract.
The NAA also provides you with certain required disclosures which include:
1. Introducing and Carrying Broker Disclosure (a version is appended to this CRM Disclosure
Package);
2. Leveraging Risk Disclosure;
3. Privacy Agreement (a version is appended to this CRM Disclosure Package);
4. Statement of Policies (includes relationship and connections to affiliated companies
disclosure, also refer to the Disclosure of Relationship appended to this disclosure
document); and
5. National Instrument 54-101 (beneficial ownership disclosure, receiving materials and
communications).
It is BBSL’s policy that your BBSL Advisor discuss the above disclosures with you and that you
have an understanding of how these mandatory disclosures affect you. If you do not feel you
understand any of these disclosures please contact BBSL Head Office Compliance at 1-888-8663608 for immediate assistance.
You may also engage BBSL to provide additional products and services that require additional
contracts to be signed:
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Fee Based Accounts,
Managed Accounts,
Registered Accounts,
Margin Accounts,
Corporate Accounts, or
Trusts,
To the extent you have completed and signed any of these documents, these contracts will also
govern your relationship with BBSL and with your BBSL Advisor. Please review these contracts to
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ensure the accuracy of information and that you continue to wish to utilize such accounts. For a
complete list of documents that relate to opening accounts please visit our website at
www.bbsl.ca and click on the “Open Account” tab at the top of our Home Page.
Some BBSL Advisors brand their practices. As well, some have supporting literature that profiles
their personal brand (and in some cases they and their clients sign personal pledges). While
such marketing literature passes a compliance approval process, please note that these are not
BBSL contracts; that you may not rely on such marketing materials in respect of your relationship
with BBSL; and that BBSL only supervises the suitability of activity in your account based on
official BBSL contracts.
Your Relationship with BBSL is a Commercial Contract
You engage BBSL to provide you with advice, services and investment execution and in return
you pay fees and/or commissions to BBSL. To help you understand the commercial relationship
with BBSL, the BBSL “Services and Compensation Disclosure” is appended to this CRM Disclosure
Package. This Services and Compensation Disclosure provides you with a discussion of what
products and services may be purchased from BBSL and how you pay for such products and
services.
How You Pay BBSL
How you pay BBSL will depend upon the type of account that you open: (i) Commission Based;
(ii) Fee Based; or (iii) Managed.
In a Commission Account, you pay BBSL a negotiated commission each time you execute a buy
or sell transaction. Your BBSL Advisor will verbally provide you with the amount of commission
to be paid for the transaction and you will receive a documented confirmation of the transaction.
Should any information contained on the confirmation not match your instruction for such
transaction, contact your Advisor immediately and should you not receive prompt satisfaction
contact BBSL Head Office Compliance.
In addition to commissions, other fees and costs may be charged as disclosed (see Account
Agreements, BBSL Fee Schedule, and Services and Compensation Disclosure).
In Fee Based and Managed Accounts, you pay BBSL a fee that is based on the value of assets in
your account. These fees are not connected to the value or volume of trades in the account.
Other costs, including potential discounted commissions for trades may be charged to Fee Based
and Managed Accounts as disclosed (see Fee Based and Managed Account Agreements, BBSL
Fee Schedule, and Services and Compensation Disclosure).
Commissions for trades and annual fees for Fee Based and Managed Accounts are subject to
minimum charges (see BBSL Fee Schedule and Services and Compensation Disclosure).
Your Relationship with BBSL
Commission Accounts and Fee Based Accounts are generally advisory accounts which are
governed by duty to client regulations and also by professional standard of care.
Managed Accounts are fiduciary accounts.
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BBSL Makes No Tax Advice Representations
BBSL is not a tax advisor, nor does BBSL provide any type of tax advisory services to clients. Tax
matters often are a consideration in investments and financial planning. As well, BBSL offers tax
advantaged products and services to clients. When tax is a factor in any investment
recommendation, it is a BBSL Advisor’s duty to identify tax features related to products and
services offered, and it is a client’s responsibility to seek out their own independent tax advice.
Canada Revenue Agency historically views investment dealers as conducting a commission based
business to execute trades. However, over time services such as Fee Based Accounts and
Managed Accounts involve potentially tax deductible investment counseling fees. To assist
clients to segment fees from commissions for such accounts, BBSL offers clients the option to pay
a discount trading commission which clearly delineates trading commissions from fees. BBSL
strongly recommends such an approach as a tax risk mitigation strategy. Clients may choose
an all inclusive fee. When clients choose such all inclusive option, they do so at their
sole taxation risk. BBSL does not represent or warrant any amount of tax deduction
eligibility. See IT-238R2 which can be found in the Open Account section of BBSL’s
website.
BBSL, or its service providers, will supply you with required tax slips. The most frequent
tax reporting includes T3, T5, Annual Transaction Summary Reports (non registered
accounts), and Tax Deductible Interest Expense Summary. Other applicable tax slips
will be provided as appropriate.
Understanding when BBSL uses 3rd Parties and how they are Paid
BBSL is an Introducing Broker (“IB”) and uses a Carrying Broker (“CB”). Such arrangement is
discussed in BBSL’s Conflict of Interest Disclosure. The cost of most services rendered to BBSL
by our CB will be paid by BBSL from what you pay BBSL for our services.
There are, however, some third party costs associated with some services. For example, Fixed
Income securities are sold by the CB to BBSL as Principal. How these charges are applied to your
account is discussed in BBSL’s Services and Compensation Disclosure. As well, an Information
Statement for Strip Bonds is provided as an appendix to this CRM Disclosure Package.
Enhanced Suitability Supervision of Your Relationship with BBSL
You identified and documented your risk tolerance, objective and other factors in your NAA.
BBSL accepted your account based on those representations, and our internal assessment of
whether entering into a commercial relationship with you based on your representations is good
and proper business for both you as our client, and for BBSL.
On an ongoing basis BBSL conducts enhanced suitability supervision of your account based on
the alignment of your investment holdings to your stated risk tolerance and investment
objectives. You have provided BBSL with additional factors for our consideration, and BBSL may
take such other factors into consideration at BBSL’s sole discretion, but stated risk tolerance and
investment objectives will be the overriding enhanced suitability assessment factors.
BBSL’s suitability approach is based on three practical considerations;
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Creating a labyrinth of suitability considerations can lead to a paralysis of analysis
approach to supervision which can put unintended barriers before clients.
Empirically most suitability problems arise from failures arising from clients taking too
much risk, or purchasing investments with the wrong investment attributes as compared
to client investment objectives.
There is a selection of automated software systems that are capable of performing
instant analysis of account holdings as compared to the risk profile and investment
profile of individual investments.
What is Enhanced Suitability?
Traditional supervision in the investment industry provides for a review of each trade to ensure
that as a singular trade, such trade is suitable for the account at the time of the trade. BBSL
continues to perform traditional trade supervision on a daily basis.
Enhanced suitability asks the question of whether the profile of the investments held in your
account remains consistent with your risk tolerance and investment objectives in the absence of
a trade. BBSL performs enhanced suitability on an automated basis using software that does an
assessment for account (regardless of trade activity) and will alert BBSL Compliance of material
misalignment.
Enhanced suitability supervision on an automated basis remains a subjective process. Individual
securities are rated in respect of their risk and investment profiles and alerts are generated on a
materiality basis (meaning that a portfolio needs to be outside of the defined parameters by a
specified amount prior to an alert being generated).
Conflicts of Interest between You and BBSL
Clients who engage BBSL enter into a commercial relationship that is intended to represent
mutual good and proper business for each client and for BBSL. By the nature of that commercial
relationship conflict of interest is guaranteed. BBSL has thousands of clients and since BBSL
represents the interests of every client, when clients have competing interests, BBSL is put in a
position of conflict of interest. Also, BBSL is a commercial enterprise and seeks to sustain itself
and provide employment for many. Consequently, BBSL and clients will be in a mutual conflict of
interest position in terms of the prices that BBSL establishes for its products and service.
The resolution of conflict of interest in some cases is simple and in others it is not. BBSL’s
Conflict of Interest Disclosure is appended to this CRM Disclosure Package and discusses how
BBSL discloses, manages, controls and avoids Conflicts of Interest.
Complaints You may have about BBSL or our Advisors
We strive to serve you well and have satisfied clients. When that does not happen we have a
Complaint Handling Process. Appended to this CRM Disclosure Package is BBSL’s “Complaint
Process Letter”; IIROC’s “An Investor’s Guide to Making a Complaint”; IIROC’s “Why IIROC
Matters to You, the Investor” and “Canadian Investor Protection Fund”.
The collection of these documents is designed to ensure you are empowered to assess that any
issues related to your accounts are fairly resolved and that your investments are protected by
BBSL in all respects.
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Leverage Disclosure
A Leverage Disclosure Document is included in this CRM Disclosure for information
purposes. If you applied to include a leverage strategy as part of your investment
activity with BBSL, BBSL will not open an account with you unless you sign the
acknowledgement and consent document for leverage which represents that you
understand how leverage operates.
If you subsequently wish to add leveraging to your account, you must sign and
complete the Leverage Disclosure document. In particular, if you have not disclosed the
use of leveraging to BBSL, BBSL requires that you disclose the existence of leveraging so
that we can appropriately supervise activity in your account.
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Services Provided to You and BBSL Compensation Disclosure
Burgeonvest Bick Securities Limited (“BBSL”) provides a full range of Products and
Services to meet wide ranging client needs. As a full service investment dealer, BBSL is
able to provide customized investment and financial solutions to our clients with an
extensive menu of services and products, which includes over 6,000 individual
investment securities.
Regardless of the type of account opened, all services and products are available to
clients. How our clients pay BBSL and Advisors will vary depending upon which of the
three types of client/advisor relationships a client chooses. BBSL offers:
1. Fee Based Accounts (an advisory relationship between clients and BBSL). Note
that in cases when a Fee Based Account is opened with BBSL and a concurrent
agreement is signed with a third party Investment Counsel firm, the relationship
with the Investment Counsel firm may be fiduciary, however regardless of such
relationship with the Investment Counsel firm, the relationship with BBSL remains
advisory;
2. Commission/Transactional Accounts (an advisory relationship between clients
and BBSL); and
3. Managed Accounts (a fiduciary relationship between clients and BBSL).
Clients may open investment accounts or speculative accounts with BBSL. A
speculative account is defined as an account with 25% or more in higher risk tolerance
combined with an investment objective that involves a similar degree of activity in
speculative securities or speculative trading strategies. BBSL will not accept speculative
accounts for Fee Based and Managed Accounts. Only Commission/Transactional
Accounts will be permitted to be opened as speculative accounts.
All investment products approved for sale at BBSL may be purchased in any of the three
types of accounts at BBSL. However, eligibility qualifications and/or additional
processes may apply to Fee Based and/or Managed Accounts. Please see
qualifications in table below.
Services Provided to Client Accounts and Applicable Fees
SERVICE PROVIDED
Ongoing Advice and Service
by Advisor
OTHER FEE
SCHEDULE
APPLICABLE
Fee Based
Account
For Minimum
Fee and/or
Commission
see BBSL Fee
Schedule
Included in
Fee
Commission
Based Account
Included in
Commission
Managed
Account
Included in Fee
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Discretionary Investment
Management
See 3rd Party
Agreement
when applicable
Priced
Separately
based on 3rd
Party Contract
Priced Separately
based on 3rd
Party Contract
Included in
Fee
Included in
Commission
Included in Fee
See minimum
Commission on
BBSL Fee
Schedule
Per BBSL Fee
Schedule, or
may be
negotiated to
be included in
Fee
Included in
Commission and
refer to BBSL Fee
Schedule
Per BBSL Fee
Schedule, or may
be negotiated to
be included in
Fee
Embedded
Commission
paid by Issuer.
Availability is
subject to
limited quantity
Available upon
Client request
at no
additional out
of pocket cost
to Client
Available to Client
at no additional
out of pocket cost
to Client
Available only
upon prior written
Client
request/consent
at no additional
out of pocket cost
Available upon
Client request
at no
additional out
of pocket cost
to Client.
Annual Fee
may be
negotiated to
lower amount,
but still subject
to Annual
Minimum Fee
Available at no
additional out of
pocket cost to
Client, but may be
subject to
Deferred Sales
Commission
Available upon
Client request at
no additional out
of pocket cost to
Client. Annual
Fee may be
negotiated to
lower amount, but
still subject to
Annual Minimum
Fee
Risk Assessment of
Investment Portfolio
Included in
Fee
Included in
Commission
Included in Fee
Assessment of Investment
Objectives
Included in
Fee
Included in
Commission
Included in Fee
Supervisory Review of
Alignment of Risk Tolerance
and Investment Objective
Included in
Fee
Included in
Commission
Included in Fee
See BBSL Fee
Schedule
Included in
Fee
Included in
Commission,
Subject to
Minimum Account
Size
Included in Fee
See BBSL Fee
Schedule for
Available
Available
Available
Ongoing Services provided by
other BBSL Staff than Advisor
Trade Execution, including
access to all approved
investment products and
services. Note that for Fixed
Income Trades purchased
from BBSL’s Carrying Broker
(“CB”), the CB will separately
disclose any compensation as
Principal
Access To New Issues
Access To Products with
Embedded Trailing
Commissions
Custody of Investment Assets,
including Online view access
Registered Plans (RSP, RIF,
RESP, TFSA etc).
Refer to
Product
Prospectus or
similar
document for
level of
Embedded
Trailing
Commissions
Included in Fee
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Annual Fees
See BBSL Fee
Schedule
Included in
Fee
Included in
Commission,
subject to
Minimum Account
Size
Included in Fee
Subject to 3rd
Party Exchange
Fees (BBSL
receives no
portion of such
fees)
Available
Available
Available
Interest
Charged by
BBSL on
amount of debt
Available
Available
Available
Included in
Fee
Included in
Commission
Included in Fee
Included in
Fee
Included in
Commission
Included in Fee
Priced
individually
and may be
negotiated to
be included in
Fee
Priced individually
and will be in
addition to
Commission
charged
Priced individually
and may be
negotiated to be
included in Fee
Included in
Fee
Included in
Commission
Included in Fee
CIPF Insurance for Accounts
Financial Institution Bond
Insurance for Accounts
Included in
Fee
Included in
Commission
Included in Fee
Product and Service Due
Diligence, includes Risk Rating
Included in
Fee
Included in
Commission
Included in Fee
Included in
Fee
Included in
Commission
Included in Fee
Optional Croesus Reporting
Investment Research
Included in
Fee
Included in
Commission
Included in Fee
Included in
Fee
Included in
Commission,
subject to
Minimum Account
Size
Included in Fee
U.S. Currency Accounts
U.S./CDN Dollar Exchange
Margin
Optional Electronic Banking
Mandatory Tax Reporting (T3,
T5, Transaction Report,
Interest Expense Report etc as
required)
Financial Plans (Optional)
Annual CRM Fee (Off Book
Reporting and Supervision.
This fee will become effective
in 2015.)
Subject to
Minimum
Charge for
Financial Plans,
see BBSL Fee
Schedule
See BBSL Fee
Schedule
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CONFLICTS OF INTEREST DISCLOSURE
General Description
Actual, potential and perceived conflicts of interest exist in almost all human interactions.
Our relationship with you is no different. For instance, Burgeonvest Bick Securities Limited
(“BBSL”) is a “for profit” business and has a responsibility to maximize economic returns for
our shareholders. As well, BBSL has various other stakeholders, all of whom rely on BBSL
to operate profitably in order to honour the interests of those stakeholders as expected
under the Business Corporations Act (Ontario) (“OBCA”) and pursuant to securities industry
financial compliance regulations. We believe the best way to achieve our goals is to provide
you with trusted advice and personalized financial solutions that help you achieve your
financial goals. Our objective is to serve your financial goals, which is our best way to retain
your continued patronage and, in turn encourage you to recommend our services and
products to others.
The nature of our relationship with you is discussed in the Client Relationship Model
(“CRM”) Disclosure section of the “Doing Business with BBSL Disclosure” package that was
provided to you with the opening of your BBSL account. The Doing Business with BBSL
Disclosure package is available for your review at our website at www.bbsl.ca in the “Open
Account” section. We described how you pay us, and our services to you in the “Services
and Compensation Disclosure” which is also in the Doing Business with BBSL Disclosure.
We have prepared the Doing Business with BBSL Disclosure as part of our commitment to
serve our clients to the highest professional standards; to ensure you understand what
conflict issues are present in the operation of your account; to effectively deal with conflict
of interest management; and to help you better understand the relationship you have with
BBSL when you open an account with us.
In addition to our objective to serve your financial goals in alignment with our business
interests, Canada has comprehensive and extensive securities regulatory rules and
regulations, many of which are directed at protecting client and investor interests, including
dealing with conflicts of interest. We include relevant publications in the Doing Business
with BBSL Disclosure such as “Complaint Process Letter”; IIROC’s “An Investor’s Guide to
Making a Complaint”; IIROC’s “Why IIROC Matters to You, the Investor” and “Canadian
Investor Protection Fund” to help you understand how securities industry regulation
benefits you specifically.
As well, we suggest that you refer to the websites and
publications of the provincial securities commissions through the Canadian Securities
Administrators (“CSA”) and Investment Industry Regulatory Organization of Canada
(“IIROC”) for more information on how Canadian securities regulations address conflicts of
interest and other matters in order to safeguard the investing public.
Description of Our Firm
BBSL is what is referred to as an “introducing broker” (“IB”) investment firm. Our client
accounts are held in a custody arrangement with our “carrying broker” (“CB”), National
Bank Correspondent Network (“NBCN”), a subsidiary of National Bank Financial. All
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investments shown on our/your client statements are held by NBCN in segregation from the
accounts of other brokerage firms. NBCN executes, settles, and reports all your trade
activity to you and provides BBSL (and consequentially to you) with a contractual
indemnity assuring you that the investments shown on your statements are held by them as
custodian. If, under any circumstance, any trade activity for your account is not reported on
a trade confirmation and your monthly statement, immediately report such omission to
BBSL Head Office Compliance since such an event is a violation of our operating policies and
procedures.
We provide a broad range of service in corporate finance, investment management, and
retail client services and products. We recognize and disclose to you that by definition the
combination of multiple lines of business with conflicting objectives by our wide range of
clients means that our business activities are more susceptible to conflicts of interest than
many other commercial activities. In particular, since we may periodically represent both
sides of a transaction, namely, the buyer and the seller in a trade are clients of BBSL there is
a conflict of interest. As an IB who does not carry its own investment inventory, we will
have fewer cases of such conflicts of interest as an “integrated” firm. In fact, our business
model choice to be an IB was significantly driven by our purposeful choice to reduce
potential conflicts of interest with respect to our retail investing clients. Nonetheless,
conflicts of interest may still arise despite the best intentions of our strategic planning to
limit them.
You can learn more about our firm at www.bbsl.ca.
The general types of conflicts of interest which can arise are:
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Conflicts of interest between you and us,
Conflicts of interest between you and our other clients, and
Conflicts of interest between us and our related and associated companies.
Description of Role of an Investment Dealer
As an investment dealer, we are a financial intermediary. It is common practice in the
brokerage industry that sometimes we may be the party on the other side of the transaction
(referred to as a “principal” trade) where we own the security we sell to you, or buy the
security from you for our own account. However, as an IB our business model is to act
primarily as an agent. We simply facilitate transactions between you as our client and a
third party on the other side of the transaction. Through such an “agency” trade we have no
ownership interest in the security traded. This financial intermediary role for our retail
clients is BBSL’s primary line of business.
To a lesser extent we offer corporate finance services to advise issuers of securities on how
to best raise funds by selling securities. Contemporaneously, we may recommend that our
clients buy those same securities. In such issuer advisory service arrangements, we
generally offer our services to the issuer on a “best efforts basis” where we do not guarantee
the issuer that we will sell any amount of such securities to our clients. We believe this to
be the best way to manage the conflict of interest between retail clients and corporate
finance clients. There are occasions however, when BBSL may participate in “bought deals”
where BBSL will guarantee to an issuer that BBSL will purchase a certain number of
securities at a fixed price and then resell that position to our retail clients. BBSL does not
lead “bought deal” transactions and will only agree to guarantee relatively small purchases
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in the “bought deal” if BBSL’s Corporate Finance Committee determines that there is a
significant need within BBSL’s retail client accounts for said security.
Management of Conflicts of Interest
In general, we deal with and manage relevant conflicts using broad principles described as
follows:

Avoidance: This includes avoiding conflicts that are prohibited by law as well as
conflicts that either cannot effectively be addressed, or are difficult to address in
practice without the expenditure of substantial human and capital resources.
Examples of avoided conflicts are: “tied selling”, proprietary trading, selling related
or connected securities, provision of proprietary research, and trade destination
compensation.

Control & Management: We manage acceptable conflicts through a number of
means depending on the particular conflict. Management tools may include: (i)
internal audit processes to ensure that specific disclosure of conflicts as described in
this document, or supplemental disclosure forms, are actually provided to clients
either at the time of account opening, or prior to the entry of a transaction order, as
applicable; (ii)provision of alternatives to clients so that each client may choose the
conflict management alternative that best mitigates conflicts as perceived by each
client, and under their personal circumstances; (iii) employment of a compensation
structure within BBSL that does not incent Advisors to favour one product or
service over another through differential payouts to Advisors from the gross fees
and commissions received by BBSL; (iv) where available and within the context of
BBSL supervision policies and procedures, use of electronic and manual surveillance
to monitor the application of conflict control measures; and (v)physically separating
different business functions and restricting the internal exchange of information.

Disclosure & Management: The primary method of conflict management is to
provide you with disclosure and information about conflicts. This enables you to
independently assess the significance of potential conflicts of interest when
evaluating our recommendations and any actions you and we may agree to take.
Specific discussion of issue by issue management of conflicts follows. The information is
intended to assist you in understanding and assessing material potential and actual conflicts
of interest, including how we address them. This is an overview of complex subject matters.
Despite that, we believe the simplest control is the most effective — your continued
satisfaction and patronage. If you ever have any questions or concerns, whether they
involve conflicts of interest or any other matter, do not hesitate to ask your Advisor for
an explanation and more information. If you are not completely satisfied with the
response you receive contact BBSL Compliance at our Head Office.
Understanding you Relationship with BBSL
To properly understand your relationship with BBSL you need to read and understand all of
the enclosures in the Doing Business with BBSL Disclosure. We bring your attention to three
documents in the Doing Business with BBSL Disclosure: (i) this Conflict of Interest
Disclosure; (ii) the Client Relationship Model (“CRM”) Disclosure; and (iii) the Services and
Compensation Disclosure. The interplay of these three documents gives you an
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understanding of how your commercial contracts and client relationship works with BBSL.
If you do not understand these documents, contact your BBSL Advisor for an explanation.
Should you not receive satisfactory explanation contact BBSL Head Office Compliance.
More Information
You are encouraged to proactively involve yourself to better understand issues relating to
conflicts of interest. As previously recommended in this document, refer to the websites
and publications of the provincial securities commissions through the Canadian Securities
Administrators (CSA) and Investment Industry Regulatory Organization of Canada (IIROC)
for more information on how Canadian securities regulations address conflicts of interest to
safeguard the investing public.
We document our core values, mission statement and standards, including general
standards for how we deal with conflicts of interest in our internal policies and procedures.
You should refer to the BBSL Statement of Policies that appears on the New Account
Application (“NAA”), which alternatively is often referred to as a New Client Application
Form (“NCAF”); and our Values Statement which appears on our website at www.bbsl.ca in
the “Why Work With BBSL” section. You can also obtain a copy of any of these documents
from your Advisor on request.
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Possible Conflicts and How They Are Managed
Conflict of Interest
Primary Methods We Use to Manage the Conflict
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We endeavour to be fully transparent in
disclosing fees and commissions, and to fully
inform you in advance when possible so that you
know what you will be paying. This includes our
published “Services and Compensation
Disclosure” as previously discussed in this
document.

Choice. On a disclosed basis, your most viable
method to control how you pay us is through the
payment choices that you make. We offer a wide
variety of pricing options to choose from,
including Traditional Transaction Commissions,
Fee Based, and Embedded Fees/Commission as
disclosed in the “Services and Compensation
Disclosure”. Work with your Advisor to choose
the method that suits you best.

For Other Charges, please see the “Fee Schedule”
brochure which is available at our website at
www.bbsl.ca under the “Open Account” section.

We do not engage in “tied selling” which requires
the purchase of one product or service in order to
qualify for the purchase of another product or
service. Such tied selling is prohibited by
regulation in any event.

We have policies and procedures prohibiting
recommendations solely for the purpose of
generating revenue for us without any perceived
or potential benefit to you.
We would like you to use more of
the services offered by an external
organization or group; and/or buy
more of the products offered by an
external organizations or groups.

Referral arrangements with other organizations
or groups are disclosed to you and require your
prior written consent to implement, and further
are operated in accordance with regulatory
standards.
This is a potential conflict of
interest between you and another
possible client of BBSL.

We have policies and procedures prohibiting
recommendations solely for the purpose of
generating revenue for us without any perceived
or potential benefit to you.
We earn compensation by selling
products and services to you for
which you pay us.
This is a conflict of interest
between you and BBSL.
We would like you to use more of
our internal services and buy more
of our internal products.
BBSL avoids this conflict of interest
between you and us.
16

Choice of Compensation methods. We offer feebased and managed accounts as an alternative to
Traditional Commission Accounts.

Choice of a wide range of Investment
Alternatives. We offer similar products such as
no-load mutual funds, which have pricing
structures designed to reduce commission
incentives by converting a sales volume
commission to another form of non-sales volume
commission charge.

We offer competing commission options that may
not necessarily be tied to sales volume that may
be more advantageous to certain clients under
certain circumstances.

Clients who wish to pay an hourly rate can choose
such approach in certain circumstances.

Disclosure. Our compensation is disclosed to you
and we offer pricing alternatives intended to
reduce the conflicts associated with commissionbased pricing.

We are required by industry regulations and firm
policy only to make “suitable” investment
recommendations, consistent with IIROC
Guidance Notices for “Suitability”.
We may receive compensation
from securities issuers and other
third parties based on their
products we sell to you, such as
“trailer fees” on mutual funds.

Disclosure. We disclose to you the situations and
types of third party compensation we may
receive. Please refer to other documents
including the “Services and Compensation
Disclosure”.
interest between you, BBSL and
our Investment Advisors.

Choice. You may choose to exclude such products
from your investment holdings.

Securities regulations require issuers to provide
specific disclosure in the offering document (e.g.,
prospectus) of such arrangements and the
compensation we will receive.
Our compensation
(organizationally and individually)
may involve commissions based on
sales volume.
Different products and services
have differing levels of
compensation.
17

The amount of other compensation we may
receive will vary depending on the disclosed
charges you pay for such business, or products or
services rendered to you (see “Fee Schedule”).
Our profit depends on the level of compensation
less our actual costs to deliver such business, or
products or services to you.

Some services such as Foreign Exchange are
provided directly by our CB where we do not
share in compensation from such services. For
any such services, we provide clients with access
to perceived benefits for which we receive no
direct compensation.

Please refer to our other fees and charges
disclosure schedules provided to you in that
regard.
We may sell you securities which
we own (called principal trades)
and profit by doing so.

We will tell you whether we acted as principal or
agent for each transaction on the trade
confirmation for that transaction.
between you and BBSL which, with
the exception of “bought deals”,
BBSL avoids as a policy decision.
The choice of the IB Model as
previously discussed is a policy
decision to address avoidance of
this conflict of interest.

In the case of fixed-income securities (which our
CB will usually sell as principal) our CB is
required to disclose occasions when it acts as
principal and the CB will provide you with a
stated yield to maturity so you can assess the
competitiveness of their and our pricing.
We do not sell securities of
companies that are related or
connected to us.

Should we begin to sell such securities, we are
required by regulation to disclose this when we
make a recommendation to you.
This would be a conflict of interest
between you and BBSL which BBSL
avoids

Should such a transaction occur, we will inform
you whether a transaction involved a related or
connected security on the trade confirmation.

Our Advisors receive the same commission
compensation payout as a percentage of gross
revenue regardless of the product originator.
We are compensated in other ways
as a result of the business you may
do with us, including interest
spreads on money that is loaned to
you on a margin account and the
un-invested cash deposits with us,
or administration fee such as
registered plan charges.
between you and BBSL.
18
We have discretion or control
over transactions in your account
if it is a managed account.
interest between you and us when
we can direct transactions to a
limited number of circumstances
to BBSL’s potential benefit.
We may need to select which
clients will be offered certain
securities if availability is limited.
interest between you and other
clients of BBSL.
We are paid by issuers of
securities when we advise on, or
syndicate new issues which we
may recommend to you.

Regulations require that we disclose and obtain
your specific approval to purchase securities of
related and connected entities when we have
discretionary power to do so.

Regulations require that we disclose and obtain
your specific approval to purchase securities for
issuers for whom we are offering securities as a
syndicate agent when we have discretionary
power to do so.

We have a “fair allocation” policy for managed
accounts.

For non-discretionary accounts, individual
Advisors make the determination based on
individual client relationships and suitable trade
considerations.

We have structurally segregated authority for our
business units for corporate finance and our
broader retail advisory businesses, which prevents
the sharing of non-public information by our
corporate finance business (with the relationship
with the issuer) with our broader retail advisory
businesses (with the relationship with clients like
you). Within limited parameters our corporate
finance personnel may sell issuer securities to
Accredited Investors (non traditional retail
clients).

As a strategic and compliance based decision, BBSL
has specific policies and procedures that limit the
degree of participation, and circumstance under
which BBSL will participate in “bought deal”
syndicates where BBSL will be obligated to buy a
share of a syndication and then resell such
securities to our clients.

BBSL has written supervision procedures to
review the suitability of each trade for a client to
compare such trade with the Know Your Client
(“KYC”) profile of our client.

Offering documents provide full disclosure of all
relationships we may have with the issuer.
interest on two levels: (i) a
conflict between you and our
corporate client, and (ii) a
potential conflict between you
and BBSL.
19
When we advise on a “best
efforts” new issue, we are acting
for the issuer who wants to obtain
the highest price while
recommending the investment to
purchasers who are interested in
obtaining the lowest price.
interest between you and our
corporate client.
If you hold an applicable security,
we may be paid by issuers,
offerors or others to solicit your
proxy or vote in their favour with
respect to takeover bids,
corporate reorganizations,
solicitation of proxies and other
corporate actions.

We have policies and procedures in our Corporate
Finance Committee approval process to assess the
reasonableness of price compromises. The
corporate finance client interest is weighed
separately by the Corporate Finance Committee
from the retail advisory business interest in the
approval process. Neither business line is given
preferential status.

All relationships and other material facts about our
relationship with the issuer are described in the
offering documents.

When the offering is a Non Brokered Private
Placement for sale to Accredited Investors, BBSL
performs no due diligence and has no relationship
with the issuer other than a finder’s commission
paid by the issuer.

Securities regulations require specific disclosure of
such arrangements and the compensation we will
receive is disclosed in documents such as
information circulars, takeover bid circulars and
issuer bid circulars.

IIROC requirements for client recommendation
suitability are an integral part of BBSL policies and
procedures. As a result, unsuitable
recommendations by a BBSL Advisor to their client
are prohibited, regardless of compensation
offered.

We operate our corporate finance and retail
advisory businesses as separate internal reporting
units so that such information is tightly controlled
and not shared by corporate finance with our retail
advisory businesses.

Our internal information barriers are designed to
ensure regulatory requirements are complied with
and retail advisory employees do not have access
to any non-public information that may be
available to our corporate finance businesses.
interest between you and BBSL.
As a result of business
relationships with issuers of
securities, we may know
confidential information that we
cannot disclose to you when we
recommend the securities to you,
even if that information might
lead us not to recommend buying
the securities.
between you and securities laws.
20

Industry regulations provide for formal and
required standards of practice to produce and
distribute research. Should BBSL begin to produce
its own securities research, we will comply with all
regulations.

IIROC regulations govern the distribution of third
party research and BBSL has written procedures to
address such requirements.
Advisors may make permitted
personal investments in private
companies that are in the business
of manufacturing investment
products.

Industry regulations require that such investments
must be declared with BBSL as an Outside
Business Activity (“OBA”) and be approved by us
in advance of making such a private investment by
our Advisors.
interest between you and your
Investment Advisor.

If such a permitted investment has been made,
your Advisor will inform you of such a private
investment and BBSL will also provide you with a
written disclosure of such a private investment in
the “Stated Conflicts Table” at the end of this
disclosure document.
We do not engage in trading of
securities for our own account
(called proprietary trading) in
normal course. In an exceptional
case such a trade may occur.

We maintain information barriers between our
corporate trading activities and retail advisory
business.

In the exceptional case when a proprietary trade
might occur, such trade will only be entered by
BBSL’s Ultimate Designated Person (“UDP”).

Firm and employee trades are identified as such
and client trades are given priority to firm and
employee trades in accordance with industry
“client priority” regulations.

Trade destination is a function performed by our
CB on our behalf.

Industry regulations dictate our best price and
best execution obligations to you.

We will disclose to you our ownership interests in
marketplaces should such ownership arise. We
currently have policies and procedures for trade
order routing exclusively through our CB for all
client accounts.
BBSL does not produce its own
research on securities. BBSL
distributes investment research
that is produced by third parties.
BBSL avoids this conflict of
interest by not producing
proprietary research.
interest between you and BBSL.
BBSL does not receive
compensation by trading
destinations. Regardless BBSL
observes industry requirements.
This potential conflict of interest
between you and BBSL is avoided
by BBSL’s internal policies.
21
Trades executed that involve
BBSL clients on both sides of the
trade.
between clients of BBSL.
Individuals registered with us
may also be registered with
BBSL’s related Insurance Agency,
Burgeonvest Insurance
Corporation (“BIC”) and provide
insurance services to you or other
clients from that firm.
interest that is primarily between
you and your BBSL Advisor, but
to a lesser extent with BBSL.

BBSL utilizes trade software to route client orders
to its CB. This approach manages that ability for
Advisors to match client orders which could
potentially favour one client over another.

The CB provides BBSL with an annual audited
control report that verifies the CB’s fulfillment of
required controls to CB duties under the IB/CB
service agreement. On an annual basis BBSL
reviews such controls audit for comfort in respect
of CB trade compliance.

In addition to external audit comfort, on a monthly
basis BBSL Head Office Compliance performs trade
audit samples to measure the adherence by the CB
with IIROC Trade Desk rules. On a monthly basis
Compliance reports its internal audit results to the
BBSL Board. Should any violations occur, the BBSL
Board is authorized to enable corrective measures
to be initiated.

These relationships are subject to legislative and
industry regulatory requirements that impose
restrictions on dealings between related firms
and/or individuals that are dually registered with
each related registered firm. Such restrictions are
intended to minimize the potential for conflicts of
interest and address privacy concerns resulting
from these relationships.

BBSL primary conflict management policy is that
BBSL dually licensed insurance representatives
must be licensed through BIC and not any other
insurance agency. Under such an internal licensing
approach, BBSL books and records will monitor
insurance versus securities recommendations
enabling knowledge based supervision reports
which can ensure proper conflict of interest
management.

We have adopted internal policies and procedures
that supplement the regulatory requirements,
including relationship disclosure, shared premise,
and polices on privacy and confidentiality of
information.
22
Note: Potential relevant conflicts may arise from: (i) gifts and entertainment from third
parties with which BBSL has active or potential business relationships; (ii) directorships
with other firms or other organizations; (iii) connections to outside political or charitable
activities (iv) other outside of BBSL activities; and (v) interests in the business of a supplier,
contractor, competitor etc. These types of potential conflicts are monitored and supervised
by BBSL on an internal basis and, if appropriate, will be disclosed to clients.
Specific Conflicts in relation to Potential Conflicts of Interest (i) through (v) are disclosed in
the table titled “STATED CONFLICTS TABLE”.
STATED CONFLICTS TABLE
Potential Conflict of Interest
Notes (i) through (v)
1. Nil.
Nature of Potential Conflict and Management
Control
N/A.
23
PERFORMANCE REPORTING DISCLOSURE
You have retained BBSL to purvey personalized service (including investment execution
services) and provide appropriate advice and recommendations. Such appropriate
advice and recommendations are primarily based on your investment objectives and
your stated risk tolerance. Secondary to your investment objectives and risk tolerance,
BBSL Advisors will also assess your other personal financial circumstances which may
impact how you may wish to invest.
BBSL recognizes that primary and secondary factors affect appropriate advice and
recommendations given the reality that most individuals will have competing and
conflicting objectives and considerations. Our goal is to find what may be the best fit
for a particular situation and we believe that prioritizing investment objectives and risk
tolerance is the best method to approach that goal.
In this Handbook, BBSL has provided a complete list of services you are entitled to
receive and what you pay for such services (see section titled “Services Provided to
Client Accounts and Applicable Fees”). This complete list of services and related prices
does not include any type of guarantee or representation about performance, nor do
any of the fees or commissions charged by BBSL reflect pricing based on performance.
While it is important for each client to understand how their investments are performing,
each of the services we provide to clients is unrelated to performance, even services
related to appropriate advice and recommendations. We recommend you take time to
review “Services Provided to Client Accounts and Applicable Fees” again in that context
to better understand your relationship with BBSL and our Advisors.
Ultimately, the value of our Advisors is the services they provide clients; and how well
they help you meet your investment objectives and address your risk tolerance
considerations. That said, you may ask to receive performance reports from BBSL at
any time.
BBSL uses industry specific software which can provide clients with performance
reporting when requested. Such performance reporting is based on the industry
customary “Time Weighted Method”. In addition, a comparison of your account’s
performance to various benchmarks is available upon request. The use of Time
Weighted performance for your account has been used by the industry because index
benchmarks are also generally Time Weighted. Using benchmarks that are calculated
on the same basis as your account performance has an apples to apples comparison
advantage. On that basis, the industry has used the Time Weighted approach for its
superior academic integrity for performance comparison purposes.
New securities rules based on the implementation of NI 31-103 require that BBSL notify
our clients of the methodology that BBSL will use to provide performance reporting and
how clients can compare their personal performance to performance benchmarks. In
addition these rule changes require BBSL provide performance reporting to clients by
July 15, 2016, whether requested or not by clients. In that context, BBSL will provide
24
“Dollar Weighted Method” performance reports beginning July 15, 2016 and after that
date new annual performance reports will be available as appropriate.
Integral to this new requirement, BBSL is required to change the method of your
personal performance reporting to the Dollar Weighted Method, instead of the current
Time Weighted Method being offered. While there is significant academic merit to the
Dollar Weighted Method as it shows each client their actual performance based on the
dollar flows in and out of client accounts, comparisons to performance benchmarks are
problematic as benchmarks will continue to be calculated based on the Time Weighted
Method.
Consequently, upon the completion of the computer conversion project from Time
Weighted to Dollar Weighted performance reporting, you will receive Dollar Weighted
performance reporting for your account which will be benchmarked against the broad
TSX Index for your Canadian Dollar account and benchmarked against the broad S&P
Index for your US Dollar account. Both these Indexes, however, remain Time Weighted.
Warning: To the extent that you deposit and withdraw funds to your account, and
should the amount of deposits and withdraws be material, the reliability of comparing
your personal account performance to the performance of the Index may have little or
no comparison value.
Warning: To the extent that your investment objectives and risk tolerance do not align
with the risk profile and investment holding profile of an index, the index may have little
or no valid comparison value with respect to risk adjusted performance compared to
your account since the index will not reflect your investment holdings and/or your risk
profile.
The computer conversion project to change performance reporting for accounts at BBSL
is a project BBSL has contracted to our Carrying Broker (see Relationship Disclosure for
more information). Our Carrying Broker, National Bank Correspondent Network
(“NBCN”), as Canada’s largest Carrying Broker will execute such project on behalf of all
Investment Dealers that they service. This is a major multi-million dollar project and we
are confident NBCN will fulfill the requirements of the new rules. BBSL will endeavour to
minimize the cost of this implementation to our clients.
June 2014
STRIP BONDS AND STRIP BOND PACKAGES
INFORMATION STATEMENT
We are required by provincial securities regulations to provide you with this Information
Statement before you can trade in strip bonds or strip bond packages based on bonds of
the Government of Canada, a Canadian province, or certain foreign governments or
political subdivisions thereof. Please review it carefully.
Preliminary Note Regarding the Scope of this Information Statement
This information statement relates to strip securities that are based on bonds of the Government
of Canada, a Canadian province, or certain foreign governments or political subdivisions thereof.
Provincial securities regulations create an exemption from dealer registration and prospectus
requirements for these types of securities.
Strip securities may also be based on Canadian corporate bonds. While some of the information
in this Information Statement may also be relevant to corporate bond-based strips, corporate
bond-based strips are outside the scope of this Information Statement. If you are planning to
purchase a strip or strip package based on a corporate Canadian bond, please note that such
securities are not governed by the regulations referred to above, but rather, may be subject to
certain decisions issued by Canada’s securities regulatory authorities exempting certain
Canadian corporate bond-based strip securities from various regulatory requirements, including
Section 2.1 of National Instrument 44-102 – Shelf Distributions and Section 2.1 of National
Instrument 44-101 – Short Form Prospectus Distributions. See e.g. RBC Dominion Securities
Inc.
et
al.,
(2013)
36
OSCB
3867
(Apr.
8),
online:
www.osc.gov.on.ca/en/SecuritiesLaw_ord_20130411_2110_rbc-dominion.htm. Pursuant to each
such decision, Canadian securities dealers file with the applicable Canadian securities regulatory
authorities a short form base shelf prospectus and certain supplements thereto, pursuant to which
certain Canadian corporate-bond based strip securities may be distributed on an on-going basis
without a full prospectus (the “CARs1 and PARs2 Programme”). For each decision, the
applicable shelf prospectus and its supplements may be found on the System for Electronic
Document Analysis and Retrieval or “SEDAR” at www.sedar.com.
Risk and other disclosures relating to securities issued as part of the CARs and PARs
Programme are set forth in the shelf prospectus and supplements published on SEDAR,
and investors considering purchasing such securities are advised to consult these
documents, since considerations unique to securities issued as part of the CARs and PARs
Programme are not addressed herein.
1
CARs are corporate strip bonds comprised of coupon and residual securities. 2
PARs are a form of strip bond package where the coupon rate is reduced to current yields, thus allowing
the package to be sold at par. -2 Strip Bonds and Strip Bond Packages (“Strips”)
A strip bond—commonly referred to as a “strip”—is a fixed-income product that is sold at a
discount to face value and matures at par. This means the holder is entitled to receive the full
face value at maturity. Strips do not pay interest, but rather, the yield at the time of purchase is
compounded semi-annually and paid at maturity. Since the return on a strip is fixed at the time
of purchase, strips may be a suitable investment where the holder requires a fixed amount of
funds at a specific future date.
A strip is created when a conventional debt instrument, such as a government or corporate bond,
discount note or asset-backed security (i.e., the “underlying bond”), is separated into its
“interest” and “principal” component parts for resale. Components are fungible and may be
pooled together where they share the same issuer, payment date and currency and have no other
distinguishing features. The two types of components may be referred to as follows:


The “coupon”: the interest-paying portion of the bond; and
The “residual”: the principal portion.
A strip bond package is a security comprised of two or more strip components. Strip bond
packages can be created to provide holders with a regular income stream, similar to an annuity,
and with or without a lump sum payment at maturity.3 By laddering strips with staggered
maturities or other payment characteristics, holders can strategically manage their cash flow to
meet their future obligations and specific needs.
Strips vs. Conventional Bonds
Strips are offered on a variety of terms and in respect of a variety of underlying bonds, including
government bonds issued by the Government of Canada or provincial, municipal and other
government agencies, or a foreign government. CARs and PARs are examples of strips derived
from high-quality corporate bonds. Some differences between strips and conventional bonds that
you may wish to consider include the following:

strips are sold at a discount to face value and mature at par, similar to T-bills. Unlike
conventional interest-bearing debt securities, strips do not pay interest throughout the
term to maturity; rather, the holder is entitled to receive a fixed amount at maturity. The
yield or interest earned is the difference between the discounted purchase price and the
maturity value; thus, for a given par value, the purchase price for a strip will typically be
lower the longer the term to maturity;

a strip with a longer term to maturity will generally be subject to greater price
fluctuations than a strip of the same issuer and yield but with a shorter term to maturity;

strips typically offer higher yields over T-Bills, GICs and term deposits, and over
conventional bonds of the same issuer, term and credit rating;
3
A bond-like strip bond package has payment characteristics resembling a conventional bond, including
regular fixed payments and a lump-sum payment at maturity. In contrast, an annuity-like strip bond
package provides regular fixed payments but no lump-sum payment at maturity. -3 
the higher yield offered by strips reflects their greater price volatility. Like conventional
bonds, the price of a strip is inversely related to its yield. Thus, when prevailing interest
rates rise, strip prices fall, and vice versa. However, the rise or fall of strip prices is
typically more extreme than with conventional bonds of the same issuer, term and credit
rating. The primary reason for this greater volatility is that no interest is paid in respect
of a strip bond prior to its maturity;

unlike conventional bonds that trade in $1,000 increments, strips may be purchased in $1
multiples above the minimum investment amount, thereby enabling a holder to purchase
a strip for any desired face value amount above the minimum investment amount; and

strips are less liquid than conventional bonds of the same issuer, term and credit rating:
there may not be a secondary market for certain strips and strip bond packages, and there
is no requirement or obligation for investment dealers or financial institutions to maintain
a secondary market for strips sold by or through them; as a result, purchasers should
generally be prepared to hold a strip to maturity, since they may be unable to sell it—or
only able to sell it at a significant loss—prior to maturity.
Dealer Mark-ups and Commissions
When purchasing or selling a strip bond or a strip bond package, the prospective purchaser or
seller should inquire about applicable commissions (mark-ups or mark-downs) when executing
the trade through an investment dealer or financial institution, since such commissions will
reduce the effective yield (if buying) or the net proceeds (if selling). Investment dealers must
make reasonable efforts to ensure the aggregate price, inclusive of any mark-up or mark-down, is
fair and reasonable taking into consideration all reasonable factors. Commissions quoted by
investment dealers generally range between $0.25 to $1.50 per $100 of maturity amount of the
strip, with commissions typically at the higher end of this range for small transaction amounts,
reflecting the higher relative costs associated with processing small trades.
The table below illustrates the after-commission yield to a strip holder with different terms to
maturity and assuming a before-commission yield of 5.5%. All of the yield numbers are semiannual. For example, a strip bond with a term to maturity of one year and a commission of 25
cents per $100 of maturity amount has an after-commission yield of 5.229%. The beforecommission cost of this particular strip bond will be $94.72 per $100 of maturity amount while
the after-commission cost will be $94.97 per $100 of maturity amount. In contrast, a strip bond
with a term to maturity of 25 years and a commission of $1.50 per $100 of maturity amount has
an after-commission yield of 5.267%. The before-commission cost of this particular strip bond
will be $25.76 per $100 of maturity amount while the after-commission cost will be $27.26 per
$100 of maturity amount.4
4
The purchase price of a strip bond may be calculated as follows:
Purchase Price = Maturity (Par) Value / (1 + y/2)2n
where “y” is the applicable yield (before or after commission) and “n” is the number of years until
maturity. For example, the purchase price (per $100 of maturity value) for a strip bond that has a yield
of 5.5% and 25 years until maturity is: 100/(1+0.0275)50 = $25.76.
-4 Commission or
dealer mark-up amount
(per $100 of maturity
amount)
Term to maturity in years and yield after commission or
dealer mark-up
(assuming a yield before commission of 5.5%)
1
2
5
10
15
25
$0.25
5.229%
5.357%
5.433%
5.456%
5.462%
5.460%
$0.75
4.691%
5.073%
5.299%
5.368%
5.385%
5.382%
$1.50
3.892%
4.650%
5.100%
5.238%
5.272%
5.267%
Prospective purchasers or sellers of strips should ask their investment dealer or financial
institution about the bid and ask prices for strips and may wish to compare the yield to
maturity of the strip, calculated after giving effect to any applicable mark-up or
commission, against the similarly calculated yield to maturity of a conventional interestbearing debt security.
Secondary Market and Liquidity
Strips may be purchased or sold through investment dealers and financial institutions on the
“over-the-counter” market rather than on an exchange. Where there is an active secondary
market, a strip may be sold by a holder prior to maturity at the prevailing market price in order to
realize a capital gain or to access funds. However, liquidity may be limited for certain strip
bonds and strip bond packages, and, as noted above, investment dealers and financial institutions
are not obligated to maintain a secondary market for strips sold by or through them. As a result,
there can be no assurance that a market for particular strip bonds or strip bond packages
will be available at any given time, and investors should generally be prepared to hold
strips to maturity or run the risk of taking a loss.
Other Risk Considerations
Potential purchasers of strips should conduct their own research into the term, yield, payment
obligations and particular features of a strip prior to purchase. While not an exhaustive list, you
may wish to consider some of the following potential risks:
Credit risk of the issuer – strips represent a direct payment obligation of the government or
corporate issuer, thus any change to an issuer’s credit rating or perceived credit worthiness may
affect the market price of a strip, and the impact may be more severe than the impact on
conventional bonds of the same issuer.
Interest rate risk – if interest rates rise, the market value of a strip will go down, and this drop in
market value will typically be more severe than the drop in market value for the corresponding
conventional bond from the same issuer for the same term and yield. If interest rates rise above
-5 the yield of the strip at the time of purchase, the market value of the strip may fall below the
original price of the strip.
Market and liquidity risk – strips are not immune to market or liquidity risks and may have
specific terms and conditions that apply in the event of a market disruption or liquidity event. If
liquidity is low, it may be difficult to sell a strip prior to maturity and there may be large spreads
between the bid and ask prices. There can be no assurance that a market for particular strip
bonds or strip bond packages will be available at any given time.
Currency risk – strips may pay out in a currency other than Canadian dollars.
fluctuations may enhance, nullify or exacerbate your investment gains or losses.
Currency
Component risk – you should ensure that you understand and are comfortable with the
underlying components, terms, risks and features of a strip bond or strip bond package prior to
purchase. For example, strips may be derived from asset-backed securities or callable or
retractable bonds, and may have features such as inflation indexation or structured payments.
Price volatility – strips are generally subject to greater price volatility than conventional bonds of
the same issuer, term and credit rating, and will typically be subject to greater price fluctuations
in response to changes to interest rates, credit ratings and liquidity and market events. The table
below shows the impact that prevailing interest rates can have on the price of a strip. For
example, as indicated in the table below, an increase in interest rates from 6% to 7% will cause
the price of a 5 year strip bond with a maturity value of $100 to fall by 4.73%—a larger
percentage drop than for a $100 5 year traditional bond, whose price would fall only 4.16%,
assuming the same increase in interest rates.
Market Price Volatility
Bond Type
Market
Price
Market
yield
Price with
rate drop to
5%
Price
change
Price with rate
increase to 7%
Price
change
6% 5 Year Bond
$100.00
6.00%
$104.38
+ 4.38%
$95.84
- 4.16%
5 Year Strip Bond
$74.41
6.00%
$78.12
+ 4.99%
$70.89
- 4.73%
6% 20 Year Bond
$100.00
6.00%
$112.55
+ 12.55%
$89.32
- 10.68%
20 Year Strip Bond
$30.66
6.00%
$37.24
+ 21.49%
$25.26
-17.61%
Custodial Arrangements
Due to the high risk of forgery, money laundering and similar illegal activities—and the costs
associated with such risks—with physical strips and bearer instruments, most investment dealers
and financial institutions will only trade or accept transfer of book-based strips. CDS Clearing
and Depository Services Inc. (“CDS”) provides strip bond services, including book-based
custodial services for strips and underlying bonds. Custodian banks or trust companies may also
create and take custody of strips that are receipt securities, and may permit holders to obtain a
registered certificate or take physical delivery of the underlying coupon(s) or residue(s).
However, if the holder decides to take physical delivery, he or she should be aware of the risks,
-6 including the risk of lost ownership, associated with holding a bearer security which cannot be
replaced. In addition, the holder should be aware that the secondary market for physical strips
may be more limited than for book-based strips due to the risks involved. Investors in strip
components held by and at CDS are not entitled to a physical certificate if the strips are Book
Entry Only.
Canadian Income Tax Summary
The Canadian income tax consequences of purchasing strip bonds and strip bond packages are
complex. Purchasers of strip bonds and strip bond packages should refer questions to the Canada
Revenue Agency (http://www.cra-arc.gc.ca/) or consult their own tax advisors for advice relating
to their particular circumstances.
The following is only a general summary regarding the taxation of strip bonds and strip bond
packages under the Income Tax Act (Canada) (the “Tax Act”) for purchasers who are residents
of Canada and hold their strip bonds and strip bond packages as capital property for purposes of
the Tax Act. The following does not constitute legal advice.
Qualified Investments
Strip bonds and strip bond packages that are issued or guaranteed by the Government of Canada
or issued by a province or territory of Canada are “qualified investments” under the Tax Act and
are therefore eligible for purchase by trusts governed by registered retirement savings plans,
registered retirement income funds, registered education savings plans, deferred profit sharing
plans, registered disability savings plans and tax-free savings accounts (“Registered Plans”).
Depending on the circumstances, strip bonds issued by corporations may also be “qualified
investments” for Registered Plans.
Annual Taxation of Strip Bonds
The Canada Revenue Agency takes the position that strip bonds are a “prescribed debt
obligation” within the meaning of the Tax Act. Consequently, a purchaser will be required to
include in income in each year a notional amount of interest, notwithstanding that no interest will
be paid or received in the year. Strips may therefore be more attractive when purchased and held
in non-taxable accounts, such as self-directed Registered Plans, pension funds and charities.
In general terms, the amount of notional interest deemed to accrue each year will be determined
by using the interest rate which, when applied to the total purchase price (including any dealer
mark-up or commission) and compounded at least annually, will result in a cumulative accrual of
notional interest from the date of purchase to the date of maturity equal to the amount of the
discount from face value at which the strip bond was purchased.
For individuals and certain trusts, the required accrual of notional interest in each year is
generally only up to the anniversary date of the issuance of the underlying bond. For example, if
a strip bond is purchased on February 1 of a year and the anniversary date of the issuance of the
underlying bond is June 30, only five months of notional interest accrual will be required in the
year of purchase. However, in each subsequent year, notional interest will be required to be
accrued from July 1 of that year to June 30 of the subsequent year (provided that the strip bond is
still held on June 30 of the subsequent year).
-7 In some circumstances the anniversary date of the issuance of the underlying bond may not be
readily determinable. In these circumstances individual investors may wish to consider accruing
notional interest each year to the end of the year instead of to the anniversary date.
A corporation, partnership, unit trust or any trust of which a corporation or partnership is a
beneficiary is required for each taxation year to accrue notional interest to the end of the taxation
year and not just to an earlier anniversary date in the taxation year.
Disposition of Strip Bonds Prior To Maturity
A purchaser who disposes of a strip bond prior to, or at, maturity, is required to include in the
purchaser’s income for the year of disposition notional interest accrued to the date of disposition
that was not previously included in the purchaser’s income as interest. If the amount received on
a disposition exceeds the total of the purchase price and the amount of all notional interest
accrued and included in income, the excess will be treated as a capital gain. If the amount
received on disposition is less than the total of the purchase price and the amount of all notional
interest accrued and included in income, the difference will be treated as a capital loss.
Strip Bond Packages
For tax purposes, a strip bond package is considered a series of separate strip bonds with the
income tax consequences as described above applicable to each such component of the strip
package. Thus a purchaser of a strip bond package will normally be required to make a
calculation in respect of each component of the strip bond package and then aggregate such
amounts to determine the notional interest accrued on the strip bond package. As an alternative,
in cases where the strip bond package is issued at or near par and is kept intact, the Canada
Revenue Agency will accept tax reporting that is consistent with reporting for ordinary bonds
(i.e., reported on a T5 tax slip as accrued interest where it is matched by cash flow), including no
obligation to report premium or discount amortization where the strip bond package is
subsequently traded on the secondary market.
**********************
Why IIROC Matters
to You, the Investor
The Investment Industry Regulatory Organization of Canada (IIROC)
regulates all investment dealers in Canada. We set high quality
regulatory and investment industry standards to protect investors and
strengthen market integrity. We monitor and enforce rules regarding
the proficiency, business and financial conduct of these firms and
their advisors.
That’s why choosing an IIROC-regulated firm and advisor for your investment needs matters...
IIROC-regulated advisors are able to offer a wide range of products and services, ranging from mutual
funds, guaranteed investment certificates, stocks, bonds and options to more complex alternatives.
IIROC checks advisors’ backgrounds and makes sure they’re properly trained.
Before advisors can work at IIROC-regulated firms, they must pass financial, professional and personal background checks.
Only those with the necessary training and education receive our approval. IIROC-approved advisors must complete
courses before and after they’re on the job. These include courses provided by the Canadian Securities Institute subject
to IIROC’s content approval, such as the Canadian Securities Course, the Conduct and Practices Handbook Course,
and the Wealth Management Essentials Course. Advisors dealing with options, futures or managed accounts require
additional courses.
IIROC-approved advisors must also complete continuing education programs covering compliance and professional
knowledge and skills. These requirements help advisors stay up-to-date on financial products, rules and regulations,
and industry trends.
To check an advisor’s* approval information, please visit our website at www.iiroc.ca and use our IIROC
AdvisorReport. You may also call us at 1.877.442.4322.
*Use of the word Advisor – what this means:
In this investor brochure, we have used the general term “advisor” to refer to a number of official regulatory approval
categories such as Registered Representative and Investment Representative. Please note that “advisor” is not an official
IIROC approval category for individuals working at IIROC-regulated firms. ”Advisor” is also not being used in this brochure to
represent an official registration category.
1
IIROC regulates firms
IIROC-regulated firms must comply with rules that minimize the possibility of financial failure
and protect client assets if a firm becomes insolvent.
IIROC sets minimum capital requirements that require firms to have enough capital for the type and scope of
their business activities. This reduces the possibility of firms failing by preventing excessive leverage and risky
business practices.
IIROC monitors firms’ financial condition, conducts surprise on-site audits, and requires comprehensive
financial reporting. We review each firm’s books to verify they are current, accurate and compliant with our
regulations. Firms must have their financial statements audited annually by independent IIROC-approved
accounting firms.
IIROC requires firms to keep their clients’ securities separate – or segregated – from the firm’s assets. Firms
must hold segregated assets in trust to minimize the risk of client assets being lost if the firm suffers failure or
insolvency.
All IIROC-regulated firms are members of the Canadian Investor Protection Fund. Coverage is
automatic when a client opens an account.
Accounts held at IIROC-regulated firms have additional protection through the Canadian Investor Protection
Fund (CIPF). CIPF was created so client assets (including cash, securities and certain other property such as
segregated insurance funds) within defined limits are protected.
If a client’s assets are missing because of an investment dealer’s insolvency, CIPF covers the shortfall to a
maximum of $1million per account. Many investors have a general account and a retirement account. In such
cases, each account is eligible for $1 million in coverage. If an investor has several general accounts, such as
cash, margin and US dollar accounts, they are combined into one general account for coverage purposes.
Similarly, retirement accounts such as RRSP, RIF, LIF and LIRA accounts are combined into one retirement
account for coverage purposes.
It is important to keep in mind that investment dealer failures are relatively rare occurrences in Canada.
To learn more about CIPF, please visit www.cipf.ca.
IIROC requires that firms have procedures in place to supervise client accounts and advice and
transactions reflect clients’ needs and instructions. We also monitor firms’ trading activities so
trading compliance and client needs are addressed.
Here are some of the tools we use to achieve these outcomes:
Suitability and Know Your Client – IIROC-approved advisors must follow suitability and “know your client”
rules. Advisors must be familiar with a client’s financial situation, investment knowledge and objectives, and
tolerance for risk.
Product Knowledge – Advisors must understand the products they sell. They must be aware of the risk/
return of all securities before proceeding with a transaction, and know the relevant information about the
client.
Supervision – Firms must have systems to supervise the activities of their advisors and client activity.
Marketing Materials – Firms must monitor and approve product marketing materials.
2
IIROC is here for you, the investor
When you choose an IIROC-regulated firm or advisor, you have access to IIROC’s resources and
knowledge about your advisor, your firm and the marketplace.
Our IIROC AdvisorReport – available on our website at www.iiroc.ca – will tell you:
If an advisor works for an IIROC-regulated firm;
About an advisor’s training; and
Whether an advisor has a regulatory disciplinary record.
Our website provides other information, including:
Whether a firm is regulated by IIROC;
A Glossary of Terms to help you better understand advisors’ titles and industry terminology;
Recent regulatory developments, such as new policies and rule proposals; and
Links to other regulators, organizations, governments and investor education sites.
IIROC investigates possible misconduct by firms or individual advisors and can bring disciplinary proceedings.
This may result in penalties such as fines, suspensions, permanent bars for individuals, or termination of
membership for our regulated firms.
If you are making a complaint directly to a firm, they are required to comply with our standards for handling
client complaints.
Clients of IIROC-regulated firms who wish to seek compensation also have access to an independent arbitration
program made available by IIROC and the Ombudsman for Banking Services and Investments (OBSI). Residents
in Québec can also access a voluntary mediation service through the Autorité des marchés financiers (AMF).
These options may not be available if you deal with a firm that isn’t regulated by IIROC.
IIROC matters
IIROC matters because we’re committed to protecting investors and promoting fair and
efficient capital markets. We are committed to sharing our knowledge and resources with our
stakeholders.
Don’t forget to ask if your firm or advisor is regulated by IIROC.
3
www.iiroc.ca
Tel. 1.877.442.4322
Investment Industry Regulatory
Organization of Canada
Organisme canadien de réglementation
du commerce des valeurs mobilières
Montréal
5 Place Ville Marie, Suite 1550
Montréal, Quebec H3B 2G2
Toronto
Suite 1600, 121 King Street West
Toronto, Ontario M5H 3T9
Calgary
Suite 2300, 355 Fourth Avenue S.W.
Calgary, Alberta T2P 0J1
Vancouver
Suite 2800 - Royal Centre
1055 West Georgia Street
P.O. Box 11164
Vancouver, British Columbia V6E 3R5
09/2010
An Investor’s Guide to
Making a Complaint
Protecting Investors and Fostering Fair and
Efficient Capital Markets across Canada.
The Investment Industry Regulatory
Organization of Canada (IIROC)
regulates all investment dealers in
Canada. We set high quality regulatory
and investment industry standards to
protect investors and strengthen market
integrity.
IIROC sets and enforces rules regarding:
* the business and financial conduct
of dealer firms and their registered
employees; and
* trading activity on all of Canada’s
equity marketplaces.
We also set proficiency standards. IIROC
can bring disciplinary proceedings
which may result in penalties including
fines, suspensions and permanent bans
or terminations for individuals and firms.
1
This brochure provides information on:
How to Make a Complaint to an IIROCregulated firm;
How to Make a Complaint to IIROC; and
Compensation options for investors.
This information and more is also available at
www.iiroc.ca
Don’t Delay
When making a complaint to IIROC or a firm,
do so as quickly as possible after the event.
2
Making your complaint
to the firm
IIROC-regulated firms must comply with IIROC
standards for handling client complaints.
3
For service complaints, IIROC rules require firms to
respond in writing to all written complaints.
For complaints that involve possible rule infractions
regarding a client’s account, IIROC rules require
firms to:
Acknowledge your complaint within
5 business days
Provide their final decision within 90 calendar
days, along with:
• A summary of your complaint;
• The results of their investigation;
• An explanation of their final decision, and
• Options for seeking compensation available
to you, if you are not satisfied with the firm’s
response.
If a firm cannot provide a response within 90 days,
you must be informed of the delay, the reason for
the delay and the expected new response time.
4
Making your complaint
to IIROC
You don’t need to wait until the firm responds
to your complaint before filing your complaint
with IIROC. You can do so simultaneously or at
any time.
IIROC encourages clients to inform us of your
complaints. It’s important so we can take regulatory
action where rule infractions have occurred.
We can take disciplinary action to address undesirable
behaviour by individuals or firms. Actions range from
issuing a warning to launching an investigation and
bringing a formal proceeding and hearing.
There are two ways to file a complaint
with IIROC.
1
2
5
Call our Info/Complaint Line, 1 877 442-4322,
for inquiries or to have a Customer Complaint
Form mailed to you
Complete a Customer Online Complaint Form at
www.iiroc.ca
Generally, IIROC will notify you to acknowledge
receipt of your complaint and will update you after
an initial assessment or when a decision has been
made whether to proceed with an investigation of
a complaint involving a dealer or its registered staff.
(In some cases, the entire investigation process must
remain confidential until it becomes a matter of
public record.)
You may be contacted by an IIROC staff member to
provide additional information. If we do not pursue
an investigation we may suggest, where possible,
other ways of resolving the issue and will keep the
information on file for reference.
Have your details ready
IIROC can help you best if we receive accurate
and complete information, including:
• Your name and contact information;
• The name and contact information of any
individual or firm mentioned in your complaint;
• Specific details of how, why and when you
encountered problems; and
• All the relevant documentation, including any
notes of meetings and/or discussions.
6
Investor options for
seeking compensation
You can:
Consider the free mediation service offered by the
Autorité des marchés financiers (AMF) for Québec
residents
Go to Arbitration
Take your case to the Ombudsman for Banking
Services and Investments (OBSI)
Pursue legal action
AMF Mediation Service
Québec residents may also consider free mediation
services offered by the Autorité des marchés financiers
(AMF), Québec’s financial sector regulator.
After having dealt with your firm, you can ask that a copy
of your complaint file be transferred to the AMF, who may
offer a free mediation service. Participation is voluntary
and requires the consent of both the firm and client.
For more information on mediation services:
1 877 525-0337
www.lautorite.qc.ca
[email protected]
It’s up to you …
IIROC rules require firms to participate in
arbitration or OBSI when the client chooses either
of those options.
7
Arbitration
IIROC has designated two independent arbitration
organizations for resolution of disputes between Dealer
Members and clients.
Arbitrations are conducted by a sole arbitrator. The
arbitrator guides the proceedings, reviews the case
presented by each party, and arrives at a binding decision.
Parties are permitted to retain legal counsel.
The arbitrators for this program are empowered to
award up to $500,000, plus interest and legal costs.
At the outset in a proceeding, an investor has the
option to leave the discretion on awarding legal costs
to the arbitrator or to choose to have the two parties
pay their own legal costs and not be liable to a ruling
that they would have to cover some or all of the other
party’s legal costs. It is still possible for the arbitrator to
overrule that option and retain the right to award costs
if he or she determines that one party has acted in bad
faith or in an unfair, vexatious or improper manner, or
has unnecessarily prolonged proceedings.
Arbitration fees (administrative fees, disbursements of
the arbitration organization and the arbitrator’s fees) are
divided equally between the parties unless the arbitrator
chooses to reallocate those amounts.
Please contact:
ADR Chambers
1 800 856-5154
www.adrchambers.com
Arbitration for clients resident in Québec
Please contact:
Canadian Commercial Arbitration Centre
1 877 909-3794
www.ccac-adr.org
8
Ombudsman for Banking Services and
Investments (OBSI)
OBSI is a free, independent service for resolving
investment disputes impartially. You have up to 180
days after receiving your firm’s response to submit
your complaint to OBSI. OBSI can recommend
compensation of up to $350,000.
1 888 451-4519
[email protected]
www.obsi.ca
If you decide not to accept OBSI’s recommendation,
you can still seek redress through the IIROC arbitration
program or the courts.
Legal Action
You also have the option of going to court.
Statute of Limitations
You should be aware that there are legal time limits
for taking legal action. A lawyer can advise you of
your options and recourses. Once the applicable
limitation period expires, you may lose rights to
pursue some claims.
Keep a file
As with all financial matters, it’s important to
keep a file. Retain documents such as account
application forms, agreements and statements.
Document the steps you take to resolve your
complaint. Keep copies of letters, faxes, emails
and notes of conversations.
9
Manitoba, New Brunswick and Saskatchewan:
Securities regulatory authorities in these provinces
have the power to, in appropriate cases, order that a
person or company that has contravened securities
laws in their provinces pay compensation to a
claimant. The claimant is then able to enforce such
an order as if it were a judgement of the superior
court in that province.
Manitoba Securities Commission:
www.msc.gov.mb.ca
New Brunswick Securities Commission:
www.nbsc-cvmnb.ca
Saskatchewan Financial Services Commission:
www.sfsc.gov.sk.ca
10
Protecting Investors and Fostering Fair and
Efficient Capital Markets across Canada.
www.iiroc.ca
Tel. 1 877 442-4322
Investment Industry Regulatory
Organization of Canada
Organisme canadien de réglementation
du commerce des valeurs mobilières
Montréal
5 Place Ville Marie, Suite 1550
Montréal, Quebec H3B 2G2
Toronto
Suite 2000, 121 King Street West
Toronto, Ontario M5H 3T9
Calgary
255 - 5th Avenue S.W.
Suite 800 - Bow Valley Square 3
Calgary, Alberta T2P 3G6
Vancouver
Suite 2800 - Royal Centre
1055 West Georgia Street
P.O. Box 11164
Vancouver, British Columbia V6E 3R5
03/2013
WITH THE CANADIAN
INVESTOR PROTECTION
FUND, YOU’RE PROTECTED
IF YOUR INVESTMENT DEALER
BECOMES INSOLVENT
IMPORTANT
This is a copy of the CIPF brochure that
has been obtained from the CIPF website.
The official brochure can be obtained
from any CIPF Member.
This is one way to ensure that you are
dealing with a CIPF Member.
Check the Member Directory on CIPF’s website
to confirm you are dealing with a Member of the
Canadian Investor Protection Fund.
For more information on CIPF, please visit www.cipf.ca
or call toll-free at 1 866 243 6981 or 416 866 8366
or e-mail: [email protected].
Cette publication est disponible en français.
© January 2012
Canadian Investor Protection Fund
79 Wellington Street West, Suite 610, Box 75
Toronto, Ontario, Canada M5K 1E7
HERE’S ONE ASPECT OF INVESTING
YOU DON’T HAVE TO WORRY ABOUT
Get CIPF Protection —
Invest with an IIROC Regulated Member
What is the Canadian Investor
Protection Fund?
CIPF was established by the investment industry to
All CIPF Members must include either the words
value of your account. For an example, please visit
“Member–Canadian Investor Protection Fund” or the
our website.
CIPF logo on your contracts and statements. Members
must also display the CIPF logo at their premises.
ensure that client assets are protected—within defined
limits—if an investment dealer that is a CIPF Member
becomes insolvent. Assets include cash, securities
Are there limits on my coverage?
All my assets are segregated.
Do i still need cipf
protection?
Yes. Even if all your assets are segregated at a
and certain other property such as segregated insurance
funds. CIPF is not a government organization. Payments
The limit is $1,000,000 CDN for any combination of
Member, you may be allocated a loss under Part XII
to clients are determined independently by CIPF, not
cash and securities. Most investors will have two
of the Bankruptcy and Insolvency Act of Canada, the
by the investment dealers. For more detail, please visit
accounts—a general account and a retirement account
legislation applicable to investment dealer bankruptcy,
our website at www.cipf.ca.
—that are each eligible for $1,000,000 coverage.
which would then be eligible for up to $1,000,000 in
CIPF protection as outlined in our coverage policy.
Who pays for this coverage
and how do i get it?
You, the investor, pay no fees for CIPF protection.
Coverage is automatic when you open an account
with an investment dealer that’s a member of the
Investment Industr y Regulator y Organization of
Canada (IIROC).
Each investment dealer contributes to a substantial
fund which CIPF maintains. CIPF determines the size
of the fund and the amount that each investment
dealer has to contribute.
If an investor has several general accounts, such as cash,
For a more detailed explanation, please refer to the
margin and $US, they are combined into one account for
FAQ section of our website.
coverage purposes. Similarly, retirement accounts, such
as your registered retirement savings plan (RRSP),
registered retirement income fund (RRIF), life income
fund (LIF) and locked-in retirement account (LIRA), are
combined into one account for coverage purposes.
If you have other types of accounts, you’ll want to review
the information on our website as it will help you to
determine which of your accounts would be combined.
CIPF doesn’t cover losses from market fluctuations, or
from the bankruptcy of an issuer of a security or deposit
instrument held in your account, no matter how drastic
or unfortunate.
Who are the cipf members?
Approximately 200 investment dealers across Canada
are Members of CIPF as a result of being a Dealer
Generally, investors don’t have to file individual claims
as your monthly statement is considered your claim.
Any additional information you’ll need will be available
on our website or you can contact CIPF directly.
In most cases, your account will be moved to another
investment dealer where you can access it. Alternatively,
CIPF may deliver the contents or value of your account
to you. To the extent there is an eligible loss, each claim
is considered according to the coverage policy adopted.
If the value of my account
is more than $1 million, will
i have a loss?
Member of IIROC. All Members are listed on our
website.
What do i need to do if my
investment dealer becomes
insolvent?
It’s important to remember that you’re only covered if
your losses result from the insolvency of a CIPF Member.
To view the coverage policy, please visit our website.
The $1,000,000 limit applies to your shortfall, which
in most cases will be substantially less than the
A N A DV I S O R W I T H A N UN D ERS TA N D I N G O F YO UR C HANGI NG NEEDS I S
A N I N VA LUA B L E A L LY EV ERY S T EP O F T H E WAY.
KNOWLEDGE. INNOVATION. INTEGRITY. CARE.
B
Since 1997
urgeonvest Bick Securities Limited (BBSL) is your independent financial services team.
Our Mission: Building Better Secure Lives.
We will fulfill our Mission by providing our clients with:
- Knowledgeable and independent advice
- Custom tailored personalized service
- Advice toward reaching your goals on your terms
We’re here to help build better secure lives in all areas of your specific financial
requirements.
Our core values emphasize the importance of personalized service, integrity and
honesty. The firm is focused on offering a full range of services that are suitable and
appropriate for you.
We take a broad approach to investment advice, and a holistic approach to financial
planning. Through our KYC process (Know Your Client) we develop the relationship
and understanding needed to consider a client’s stage in life, personal
circumstances, risk tolerance, investment and retirement goals.
To grow and protect clients’ assets is our objective. Building Better Secure Lives
www.BBSL.ca
INTEGRITY
KNOWLEDGE
W H AT WE D O
OUR C O M M UN I T Y
Wealth Man a g em en t
At BBSL we take pride
in being responsible
corporate citizens and
recognize the
importance of
fervently supporting
our communities.
We work with you, our clients, to create, preserve
and maximize your wealth with investments,
insurance and estate planning. Through
Burgeonvest Bick Securities and Burgeonvest
Insurance Corporation (BIC), our advisors can
offer a wide variety of options to individuals and
their businesses.
In vestm ent Ba n k in g
Business clients can count on Burgeonvest Bick
Securities’ expertise in investment banking and
corporate finance services.
We dedicate resources
annually to actively
promote the healthy
growth of our
communities through
the arts, sports, youth
programs and many
other important
affinity programs.
M A X I M UM AC C ES S & M A X I M U M C H OI C E
• A variety of relationship models including;
— Managed, Fee Based and Investment Accounts
• Financial and Retirement Planning for individuals and
business owners
• RSP, RIF, TFSA, RESP, cash and margin accounts
• Individual Pension Plans (IPPs)
• Retirement Compensation Arrangements (RCAs)
• US Currency Accounts
• Stocks, Bonds, Options
• Mutual and Segregated funds
• Flow Through offerings and private placements
• Corporate Finance and Investments including;
— Debt Financings, Collateral Based Financing
— Mergers & Acquisitions, Public Stock Offerings
— Syndication Formation and Participation
• Insurance and Estate preservation strategies including;
— Life, critical illness, disability and group benefits
• Online Account Access and Electronic Direct Deposits
• Third Party Investment Research and Reports
IN D EPEN D ENC E AND A WORLD OF C HOI C E
Our professional advisors can recommend solutions and strategies that are right for you. Whether you are looking for diversification with capital
appreciation or income, we provide access to a broad range of investment strategies that are customized to meet your needs and goals.
Our business clients have access to expertise in investment banking and corporate finance. Public stock offerings, collateral based financing, equity
financing, advisory and distribution services are also available.
We strive for exceptional customer service. We look forward to seeing you in person, however we do understand this isn’t always possible. Through the
incorporation of online financial tools and account access, you can gain access to our services when it suits you best.
Your safety and security are of the utmost importance. At Burgeonvest Bick every account statement and trade confirmation is prepared by NBCN Inc.
NBCN is Canada’s leading supplier of third party administrative and operational support. Through its parent company, National Bank Financial
(a wholly owned subsidiary of The National Bank of Canada), NBCN can offer Burgeonvest Bick Securities access to all major investment markets
around the world. We are members of the Toronto Exchange, the Investment Industry Regulatory Organization of Canada and the Canadian Investor
Protection Fund.
As a member of the Canadian Investor Protection Fund (CIPF) each separate account, as defined by CIPF, is provided with up to $1,000,000 of account
protection.
WHERE TO FIND US
Hamilton Head Office
21 King Street West, Suite 1100
Hamilton, ON L8P 4W7
T (905) 528.6505 (888) 866.3608
F (905) 528.3540
Burlington Office
1001 Champlain Avenue, Suite 201
Burlington, ON L7L 5Z4
T (905) 336.9544 (800) 289.6235
F (905) 336.9836
London Office
402 Oxford Street East,
London ON N6A 1V7
T (519) 673.3670 (888) 673.3670
F (519) 679.3623
Toronto University Ave.
170 University Avenue, Suite 701
Toronto, ON M5H 3B3
T (416) 216.0895 (866) 884.0895
F (416) 598.0470
Toronto Yonge St.
151 Yonge Street, Suite 1302
Toronto, ON M5C 2W7
T (647) 873.8520
F (416) 361.1441
Waterloo Office
460 Phillip Street, Suite 100
Waterloo, ON N2L 5J2
T (519) 880.9696
F (519) 880.9610
Stoney Creek Office
301 Fruitland Rd., Unit 8A
Stoney Creek, ON L8E 5M1
T (289) 656.0649 (877)956.0649
F (289) 656.0638
BBSL .CA
L
BUILDING BETTER
SECURE LIVES
FEE SCHEDULE
Fees are subject to sales tax where applicable
Self Directed Plans
Annual trustee fee
Deregistration fee
Deregistration fee (partial)
Multiple registered account
same S.I.N.
RESP/TFSA annual trustee fee
Unscheduled RIF withdrawal
Effective May 1, 2015
$125.00
$100.00
$50.00
$50.00
$50.00
$25.00
Trustee fees are charged annually in July and are payable
through your plan, your bank or your non-registered account.
Other Charges
Account research per hour
$25.00
Certified cheque
$25.00
Custody fee – July $50.00
DAP / RAP
$45.00
DRS Statement
$95.00
(non-registered accounts with combined assets of less than $10,000)
Estate Processing
$150.00
Continued on reverse
Member - Canadian Investor Protection Fund
BBSL
.ca
L
BUILDING BETTER
SECURE LIVES
Financial Plan Minimum
$1500.00
Ineligible fund custody (per security/per account/per month)
Interest Rates
$10.00
www.bbsl.ca/fees
Minimum trade fee
$85.00
No load mutual fund trade
$50.00
NSF cheque
$25.00
Partial transfer of account
$75.00
Stop payment of cheque
$25.00
Transfer of account
Wire transfers
$125.00
$25.00
Canadian Residents
RSP/RIF Withholding Tax Rates
Withdrawal Amount (for non-Quebec residents)
Up to $5,000
10%
$5,000.01 - $15,000
20%
Over $15,000
30%
21 King Street West Suite 1100, Box 65 Hamilton, ON, L8P 4W7

Balance

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