Video - Transparency and trust relationship
In this clip, Radek Loudin, Chief Compliance Officer, talks about the new regulatory requirements implemented under the name “Client Relationship Model,” as well as the many advantages of this regulatory reform designed to strengthen the relationship of trust between you and your advisor.
Note: The information in brackets "[...]" describes the visual and audio content of the video other than the dialogue or the narration.
[Elegant music begins. Different parts of Desjardins Securities' head office appear on screen including, primarily, the prestigious trading floor where many employees work. These images give way to a shot of the firm's logo and the dsia.ca website. This shot gives way to Mr. Radek Loudin, whom we see appearing on a balcony overlooking the trading floor where employees are busy working].
Radek Loudin (Director of Cooperative Network and Securities Compliance and Chief Compliance Officer of Desjardins Securities):
My name is Radek Loudin, I am the Director of Cooperative Network and Securities Compliance and Chief Compliance Officer of Desjardins Securities.
Always a strong advocate of transparency, Desjardins Securities is pleased to comply with the new regulatory requirements, which came originally into effect in 2013 and will be gradually implemented till the end of 2016.
To enable investors to establish a better relationship with their advisor and to help them better monitor their investments, Canadian Regulatory Authorities, in collaboration with the industry, have recently adopted new rules that are perfectly aligned with our main conduct guideline:
Transparency above all!
Designated under the name of “Client relationship model”, these regulatory amendments have the objective to reinforce the trust relationship between you and your investment advisor. The objective is achieved notably by clearly indicating all associated brokerage fees and the commissions payable by you for each trade, as well as by providing you with complete information on the performance of your investments.
You will quickly come to appreciate these changes as they offer only advantages for the client. In addition to clearly indicating the actual cost of your trades and providing you with additional tools to better understand your investments, they will facilitate information exchange between you and your advisor.
The first phase of “Client relationship model” rules, which was rolled out on March 26, 2013, essentially sought to increase communication between clients and their advisors. An information document describing the different aspects of the client-advisor relationship is since given to all new clients. This phase also introduced stricter standards to assess investment suitability and to govern disclosure and management of conflicts of interest.
As for the second phase, which started on July 15, 2014, the main objectives were to help you better understand your investments and to inform you on the related fees and types of compensation paid to your advisors and their firms.
For the sake of transparency, and to help you to make informed investment decisions, your advisor will explain all the costs that you will have to pay, directly or indirectly, when buying or selling securities.
Finally, starting at the end of 2016, Desjardins Securities will provide you with two new reports that will help you better monitor your portfolio performance. The first report will include performance details of your investments by indicating the annualized return for the previous year, as well as the returns over three years, over five years, and since the opening of the account. As for the second report, it will include an annual summary of all fees and costs incurred, as well as any compensation collected by Desjardins Securities in connection with you portfolio accounts.
With the help of these tools, you will be able to assess more easily whether your investment strategy is suited to your objectives. You will also have a better understanding of your portfolio and its performance, as well as a better comprehension of the long-term added value of the services offered by your advisor!
[The music begins again. The dsia.ca website address appears in the middle of the screen and the following text appears at the bottom of the screen « Desjardins Wealth Management Securities is a trade name used by Desjardins Securities Inc. Desjardins Securities Inc. is a member of the Investment Industry Regulatory Organization of Canada ( IIROC ) and the Canadian Investor Protection Fund (CIPF). ». These images end with the Desjardins Securities logo. ]