About us
Information on National Bank Direct Brokerage, its history, its commitment and public communications

Referral and Incentive Agreements

Referral agreements

National Bank Direct Brokerage and other members (collectively with National Bank Direct Brokerage, Members) of National Bank Financial Group will, from time to time, refer clients to each other. National Bank Financial Group is the trade name used by National Bank of Canada (NBC) and its subsidiaries such as National Bank Direct Brokerage. National Bank Financial Group’s policy is to refer its clients between Members in accordance with the needs of the client. A referral may arise for example where a specific Member does not offer certain services that a client needs but another Member does and the client is referred to that other Member for those services. 

If a client is referred to a Member that is registered under securities legislation, such as National Bank Direct Brokerage, the referred Member is responsible for the activities that require registration such as compliance and supervision of an order execution service.

Incentive referral agreements

A brief description of Members that National Bank Direct Brokerage enters into incentive referral agreements with from time to time, and the general nature of the services each member provides is set out below. An incentive referral agreement occurs when a recommendation involves remuneration. Each of National Bank Direct Brokerage and the other Members listed below are completely separate from each other, but are all wholly owned, direct or indirect, subsidiaries of NBC. Each Member offers its clients a different range of services for which each holds the appropriate registrations under applicable securities laws.

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

Referral Fees

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

The referral commissions that could be earned or paid by National Bank Direct Brokerage through referral agreements detailed below. For information purposes only, one basis point is equivalent to 0.01% (1/100th of a percent).

  • For clients referrals to National Bank Direct Brokerage from National Bank of Canada
    National Bank Direct Brokerage pays the following amount to National Bank of Canada per client referred and based on the specific product as mentioned below.

Financial products and services offered   Referral fees
National Bank Mutual Funds:  100% of the trailer commissions paid to National Bank Direct Brokerage are remitted to NBC
Third-party mutual funds:  100% of the trailer commissions paid to National Bank Direct Brokerage are remitted to NBC
NBC GICs:  100% of the commissions paid to National Bank Direct Brokerage are remitted to NBC
Third Party GICs:  25% of the commissions paid to National Bank Direct Brokerage are remitted to NBC
Fixed-income securities:  25% of the commissions paid to National Bank Direct Brokerage are remitted to NBC

For the accounts containing any of the above mentioned assets, a fixed fee of $6.25 per month/account is retained from the amount remitted to NBC by National Bank Direct Brokerage for administration purposes.

Other Important Information

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

Questions and comments


  
  
         #