Our commitment to you
We are dedicated to delivering an outstanding client experience. That's why we want to share our commitment to you and inform you of your responsibilities as a client.
National Bank Direct Brokerage ("NBDB") is committed to protecting your personal information. Our policies and practices comply with Canada's Personal Information Protection and Electronic Documents Act and all other applicable provincial standards and legislation.
For a number of years, Canadian investment authorities and organizations have been working closely together to improve and standardize the information disclosed to clients.
This has led to the development of a set of new regulations called the Client Relationship Model, or CRM. These regulations were implemented in three phases.
Regulations introduced on July 15, 2014, require that certain information must be disclosed to clients, including benchmark information and fees, as well as annual returns and commissions for debt securities.
Amendments to Phase 2 took effect in December 2015. Minor changes were made to the definition of book value in the Important Information section of your portfolio statement to comply with regulations.
Three footnotes (marked with an asterisk) may also appear in the Asset Details section with additional information on your securities.
1. Price not available: This means that the price of a security was not available at the statement date. Once the market price becomes available, it will appear on the statement.
2. Redemption fees: This means that a security may be subject to back-end fees (e.g. mutual fund with redemption fee). Depending on the length of time you hold the security, the issuer may charge you when you redeem it.
3. Book value based on market value: This means that the information we had on a security's book value was incomplete or unavailable, and so the market value was used to assess some or all of the book value, in compliance with regulations. This type of situation can occur in the event of a transfer.
As of 2016, two new annual reports must be issued to clients. These reports are sent in December with the annual portfolio statement.
1. Investment Performance Report: This report provides an investor's returns (in dollars and percentages) based on contributions, withdrawals and fluctuations in market value. It allows you to check whether you're on the right track with your investments goals.
2. Fees and Compensation Report: This report sets out the amounts NBDB receives in a year from clients' direct brokerage accounts. It is divided in two:
More information on MRCC 2
As of May 2016, clients are sent a document called Fund Facts before they purchase a mutual fund for the first time. Clients are responsible for reading this document thoroughly before making a decision.
This measure was put in place by the Canadian Securities Administrators (CSA).
Further to the changes made by the CSA, the Fund Facts document is sent to the client at an earlier stage in the transaction. Rather than sending it two days after a fund is purchased, it must now be sent before the investor makes a purchase.
This change was brought about to ensure investors have adequate time to read about a security before making a purchase.
If the transaction is carried out through our transactional website, the Fund Facts will be available online in PDF format before the transaction is confirmed.
If you carry out the transaction over the phone with one of our representatives, the Fund Facts document is sent by email, fax or mail, whichever you prefer.
The CSA confirmed that Fund Facts do not need to be sent to investors who have already received the most recent version. For clients with pre-authorized debits, the Fund Facts document will be sent when they first sign up.
You are responsible for reading the Fund Facts for investments you are interested in so you are familiar with their main features.
You'll receive Fund Facts when you buy a mutual fund for the first time and whenever the Fund Facts are updated, which is at least once a year and when major changes occur. You will not be able to purchase fund units until you receive the Fund Facts.
The Fund Facts document contains important information on the fund you would like to invest in. There is a specific Fund Facts document for each mutual fund with information on the securities it includes, returns, risks and fees.
For more information, you can view an interactive Fund Facts document provided by the Canadian Securities Administrators.
You can view the CSA document detailing all amendments to disclosure regulations when you sign up.
National Bank Direct Brokerage and other National Bank subsidiaries occasionally refer clients to each other. These internal referrals are made when appropriate, for example if the first subsidiary does not offer all the services a client needs.
If a client is referred to a subsidiary registered under the Securities Act, such as NBDB, this subsidiary is responsible for completing compliance and supervision tasks.
The table below is a description of the incentive agreements offered through the National Bank and each subsidiary's general service offering. Incentive programs involve compensation for referrals. National Bank Direct Brokerage and other companies under the National Bank flag are distinct entities but are subsidiaries belonging exclusively to the National Bank, whether directly or indirectly. Each subsidiary has a separate service offering for which it holds the necessary registrations under applicable securities legislation.
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).
Commission paid to the National Bank of Canada by National Bank Direct Brokerage for client referrals
National Bank Direct Brokerage pays the following commission to the National Bank:
|Financial products and services||Commissions|
|NBI mutual funds:||100% of commission paid to National Bank Direct Brokerage are given to NBI|
|Third-party mutual funds:||100% of commission paid to National Bank Direct Brokerage are given to the National Bank|
|National Bank GIC:||100% of commission paid to National Bank Direct Brokerage are given to the National Bank|
* Out of the amount paid to the National Bank, NBDB keeps a fixed amount of $10 per month per account for administrative costs for accounts holding the assets listed above.
National Bank Direct Brokerage and other National Bank subsidiaries have adopted policies and procedures to identify and address any potential conflict of interest arising from these agreements. NBDB is not informed of transactions you complete through other National Bank subsidiaries except as regards commission, unless you have provided prior consent.
At National Bank Direct Brokerage we offer Canadian investors comprehensive direct brokerage that is easily accessible, reliable, and allows them to carry out trades and plan and take charge of their investment decisions. NBDB also offers the support of a team of dedicated specialists, cutting-edge technology and sophisticated tools.
Discount or direct brokerage allows clients to manage their own investments and perform their own asset management activities, from developing a strategy to carrying out transactions. This flexible option provides useful information and tools for self-directed investors.
NBDB offers investors a direct trading service without advice. This means that our clients' orders are accepted and executed without us making any recommendations or validating their appropriateness or suitability with respect to the client's financial situation, investment knowledge, investment objectives or tolerance for risk.
Choose NBDB and benefit from one of Canada's top direct brokerage firms. Whether you are a novice, intermediate or seasoned investor, we have what it takes to help you reach your financial objectives. We provide access to all the services you need to independently manage your accounts: unparalleled customer service, investment accounts and solutions tailored to different investor profiles, and sophisticated IT tools to help you make your investment decisions.
Please read our Relationship Disclosure, which provides complete information on your account and your relationship with National Bank Direct Brokerage.
We recommend that you keep a copy for future reference. Please do not hesitate to contact us if you have any questions or comments. We are open from Monday to Friday, 8:00 a.m. to 8:00 p.m. ET.
Prior to filing your return, please make sure that you have received all your tax slips to avoid having to submit an amended tax return. Please note that these documents reflect the transactions or the income recorded during the year and that some tax slips may not pertain to your situation. Given the Canadian tax system’s complexity, we recommend that you hire a specialist to prepare your tax return if your situation warrants it.
|Tax slip / Report||Notice and publications|
|T5 (Federal) / Relevé 3 (Quebec)
Statement of Investment Income and Investment Income Summary (2018)
||Mailling Target Date
|Interest and dividends
||RL-3, T5 slips
||February 25, 2021
|Statement of trust income||RL-16, T3 slips||March 17, 2021|
||R18, T5008 slips
||February 25, 2021
||RL-2, T4RSP slips
||February 23, 2021
||January 14, 2021
||RL-2, T4RIF slips
||February 23, 2021
||RL-1, T4A slips
||February 3, 2021
||February 3, 2021
||NR4 slip||February 3, 2021