TMX Group Limited
National Bank Group Inc., an affiliate of National Bank Financial
Inc. (NBF), owns or controls an equity interest in TMX Group Limited
in excess of 5% of the issued and outstanding equity securities
thereof, and has a nominee director serving on the board. NBF is an
indirect wholly owned subsidiary of National Bank of Canada. From time
to time, National Bank of Canada may enter into lending or financial
agreements with companies that are the subject of research reports or
that are recommended by NBF. At the present date, National Bank of
Canada is a lender to TMX Group Limited. As such, NBF may be
considered to have an economic interest in TMX Group Limited. No
person or company is required to obtain products or services from TMX
Group Limited or its affiliates as a condition of doing business with
TMX Group Limited or its affiliates.
TMX Group Limited is also the limited partner of Alpha Trading
Systems Limited Partnership. Alpha Trading Systems Limited Partnership
owns Alpha Exchange Inc., a stock exchange in Canada for the trading
We can execute transactions on your behalf on Alpha Exchange Inc.
and enter orders which cannot be immediately completed into the Alpha
Exchange Inc. order book. In that role, we are subject to a number of
regulatory obligations, including the requirement to diligently pursue
the best price and best execution of each client order on the
marketplace. Those obligations override the direct or indirect
interest NBF has in the above companies.
Horizons Exchange Traded Funds family (Horizons ETFs)
NBF helped create a number of the Horizons ETFs by underwriting
enough of the initial units to allow the ETFs to be listed and trade
on certain exchanges. NBF is the “registered trader” for certain
Horizons ETFs listed on the Toronto Stock Exchange and, as such,
performs market maker functions in accordance with the rules of the
Exchange. All securities listed on the Exchange have a dealer selected
to perform this role which is intended to help keep the financial
NBF is one of several dealers selected by the Horizons ETF to be a
“Designated Broker” and “Underwriter.” The purpose and function of
these roles are described in the Horizons ETF prospectuses. The
dealers acting in these capacities facilitate liquidity and make it
easier for investors to buy and sell Horizons ETF units.
Acting as principal, National Bank of Canada, NBF and their
affiliates may hold units in one or more Horizons ETFs either through
direct investment in these units or by retaining units acquired
through their market-making activities. We note that many of the
Horizons ETFs offer alternative positions (“bull” or “bear”) for a
given investment. National Bank of Canada, NBF and their affiliates,
in their role as principal, can hold either of these positions based
on their view of the market at any given time.
National Bank of Canada, NBF and their affiliates may provide
credit, derivative investment products such as forward contracts, and
other services to one or more of the Horizons ETFs. These products may
form an integral part of the Horizons ETF. Further information
regarding the types of products or services required by the Horizons
ETFs may be found in the Horizons ETF prospectuses.
Fiera Capital Corporation
We retain the services of many portfolio management firms to act as
sub-advisors for the range of discretionary managed investment
products and services we offer.
The fees you pay for these products and services are determined by
agreement between you and your Investment Advisor when you participate
in one of our discretionary management programs. These fees compensate
us and your Investment Advisor for the services provided, as well as
the sub-advisor who chooses the investment vehicles for your products
and services. The total compensation to be received by us and your
Investment Advisor is, in part, influenced by the amount of
compensation payable to the sub-advisor.
Fiera Capital Corporation (“Fiera”) is one of the sub-advisors we
retain. National Bank of Canada (the “Bank”) is a significant
shareholder in Fiera, and Fiera has agreed to provide its investment
management services to us on favourable terms. As a result, the fees
paid to Fiera by us for its services as a sub-advisor are generally
lower than those charged by other arm’s length portfolio managers.
Furthermore, the Bank has agreed to compensate Fiera, under certain
circumstances, if the overall value of the assets it manages for the
Bank and its subsidiaries falls below a specific level. However, the
Bank and its subsidiaries, including NBF, are not required to hold a
minimum value of assets managed by Fiera.
Given our relationship, we may be seen to have an economic incentive
to offer investment products and services managed by Fiera. In
addition, your Investment Advisor has an economic incentive to
recommend investment products and services for which Fiera is a
sub-advisor over products and services offered to you by other
sub-advisors because the compensation your Investment Advisor receives
will generally be higher.
If you would like further details on the fees payable to independent
sub-advisors for the investment products and services you are
considering, please contact your Investment Advisor.
Under applicable regulatory requirements, your Investment Advisor
must always ensure that the products or services recommended to you
match your investment objectives and risk tolerance.