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Regulatory information

Our commitment to you

Our commitment, your responsibilities

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.

Commitment icon

Our commitment

  • Provide you with expert assistance and support to help you to become a self-directed investor.

  • Provide outstanding client service.

  • Provide superior direct brokerage services by offering:

    • A cutting-edge online trading platform
    • Competitive pricing
    • Key investment information, sophisticated tools, and support from investment agents
    • A link to the National Bank transaction site for your online banking
       
  • Process stock market orders according to your instructions and in a timely manner, and send confirmations for each trade you carry out.

  • Send you a detailed portfolio statement each quarter and for each month that you carry out transactions.

  • Act professionally and comply with applicable securities laws and regulations.

  • Safeguard your personal information.
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Your responsibilities

  • Review your trade confirmations, portfolio statements and other correspondence and promptly report any errors or omissions.

  • Review the prospectus and other relevant information to ensure you understand the products you are investing in.

  • Read and understand your brokerage account agreements and keep copies for future reference. Ask any questions you may have.

  • Monitor your investments and keep up to date on news impacting your portfolio by consulting relevant websites and issuer press releases, notices and other documents.

  • Read any documents you receive concerning market events or restructuring affecting your investments. Check the potential tax impact on the securities in your portfolio and take any action required.

  • Review the prospectus for mutual funds and other securities for information on applicable fees and minimum holding periods.

  • Make sure you have sufficient available funds in your account to cover any transactions.

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 more information, please see Terms of Use and our Privacy Policy.

The Client Relationship Model

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.

 

Phase 1 (2014) – Transparency

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.

 

Phase 2 (2015) – Account Statements

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.

Footnotes :

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.

You can adjust the book value of a security by completing form 27740. Do you have any questions? Check out the Book value section of our FAQ.

 

Phase 3 (2016) – New Annual Reports

As of 2016, two new annual reports must be issued to clients. These reports are sent in December with the annual portfolio statement.

New reports:

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:

  • Amounts clients have paid to us directly
  • Amounts received through a third party

 

More information on MRCC 2

For further information on these regulations, please visit the IIROC and CSA websites.

The Foreign Account Tax Compliance Act (FATCA)

Find complete information on the Foreign Account Tax Compliance Act (U.S.) at nbc.ca.

Fund facts

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).

 

Why was this change made?

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.

 

How are Fund Facts sent?

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.

 

What you need to do

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.

 

What is the Fund Facts document?

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.

 

Questions?

Click on Contact us on our website or send an email to directbrokerage@nbc.ca. You can also call us at 1-800-363-3511, option 3

 

CSA publication

You can view the CSA document detailing all amendments to disclosure regulations when you sign up.

Better trade execution

Click here for our Best Execution Public Disclosure Statement.

Referral and incentive agreements

Referral agreements

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.

 

Incentive agreements

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 National Bank of Canada is a Canadian chartered bank offering comprehensive financial services including commercial banking and investment banking services. The National Bank is an active player on international capital markets and, through its subsidiaries and other entities, is involved in securities brokerage, insurance and wealth management, as well as mutual fund and retirement plan management.

 

Incentive commissions

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.

 

Other important information

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.

Relationship disclosure

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.

 

Self-directed investing

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.

 

Take control!

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.

National Bank Direct Brokerage
1100, Robert-Bourassa Blvd., 7th floor
Montreal, QC H3B 2G7
Toll-free number: 1 800 363-3511
Fax:  514 394-8688
Email: directbrokerage@nbc.ca

Year-end tax statements

You will find below information regarding the various tax slips and forms you may need to prepare your tax return as well as two guides detailing the tax slips we issue to our clients. 

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) 

Your 2020 Tax Return

Statement description
Statement #
Mailling Target Date
Interest and dividends
RL-3, T5 slips
February 25, 2021
Statement of trust income RL-16, T3 slips March 17, 2021
Trading Summary
R18, T5008 slips
February 25, 2021
RRSP withdrawals
RL-2, T4RSP slips
February 23, 2021
RRSP contributions 
Contribution notice
January 14, 2021
RRIF/LIF withdrawals
RL-2, T4RIF slips 
February 23, 2021
RESP withdrawals
RL-1, T4A slips 
February 3, 2021
Non-resident (RRIF)
NR4 slip
February 3, 2021
Non-resident (LIF)
NR4 slip  February 3, 2021