Investment Planning Counsel

Transcription

1 Investment Planning Counsel Client Information Booklet Relationship Disclosure & Other Information Please review and retain this booklet.

2 Introduction Thank you for choosing to be a client of IPC Investment Corporation (IPCIC). Together with your IPC Advisor, we are committed to helping you live your dream. This Client Information Booklet describes the important aspects of your relationship with us. Among other information, it explains: how your investment suitability is determined; how IPCIC and your Advisor are compensated for the services provided you; how your account is administered; our responsibilities to you; and your responsibilities as a client. We encourage you to take the time to review the information contained in this booklet and retain it for your records. Should you have any questions about its content, please do not hesitate to contact your IPCIC Advisor or IPCIC Head Office at: IPC Investment Corporation Attention: Compliance Department Address: 2680 Skymark Ave, Suite 700, Mississauga, ON Tel: or We look forward to helping you live your dream. Sincerely, John G. Novachis President IPC Investment Corporation

3 Table of Contents Relationship Disclosure Products and Services... 2 Cheque Payment Instructions... 2 Assessing Suitability... 3 New Account Application Form IPCIC Nominee Self-Directed Plans... 4 Account Fees and Service Charges... 4 Referral Arrangements... 5 Mutual Fund Management Expenses... 5 Advisor Compensation... 6 Important Information... 6 Client Responsibilities Statement of Related Parties... 8

4 Relationship Disclosure Together with your IPCIC Advisor, we are committed to assisting you in achieving your financial goals. Your IPCIC Advisor provides financial planning advice and services relating to your mutual fund investments and certain other investments. In addition to providing the basic services required to maintain your account, IPCIC will ensure that you are provided with the necessary information to make informed investment decisions. Your IPCIC Advisor serves as your primary point of contact. Both IPCIC and your IPCIC Advisor have an obligation to deal with you in an ethical and professional manner. This includes, keeping your personal information confidential, following written procedures to ensure you receive a proper level of service and ensuring that our activities adhere to the applicable regulatory and compliance rules. This disclosure provides information that will assist you with understanding your relationship with IPCIC and your IPCIC Advisor. This booklet describes the products and services offered, how investment suitability is assessed and how IPCIC and your IPCIC Advisor are compensated. We recommend that you communicate regularly with your IPCIC Advisor and proactively request for information you may need to resolve any questions that may arise about specific transactions, investments, or your relationship with your IPCIC Advisor or IPCIC. IPCIC and its Advisors are authorized to sell only the products described in the Products and Services section of this booklet. Insurance products and services such as segregated funds, life insurance and life annuities are also available through your IPCIC Advisor if he or she is licensed to sell insurance. Other products and services such as brokerage, mortgage and banking services are available through our affiliated entities or third party service providers. We would like to draw your attention to the fact that IPCIC is only responsible for IPCIC-sponsored products and services. When you open an account with us, you are establishing an Advisory relationship with IPCIC. An Advisory relationship means that you are responsible for your investment decisions, but your IPCIC Advisor will provide advice and recommendations that will assist you in making informed investment decisions, thereby, helping you achieve your financial goals. Based on your investment objectives, risk tolerance and other personal circumstances, your IPCIC Advisor is responsible for ensuring their investment recommendations are suitable for you. The Assessing Suitability section of this booklet further describes how and when investment suitability is determined. Investment information will be provided to you using the following reporting methods: Trade Confirmations 1 : after each investment transaction, you will receive a trade confirmation, usually within 10 business days of the transaction. A trade confirmation provides details of your transaction and will be mailed to you via Canada Post. In the instance of systematic transactions (pre-authorized contributions, systematic withdrawal plans, etc.), a trade confirmation will be issued for the first transaction only. Trade confirmation will not be generated for all subsequent systematic transactions. The details of all subsequent systematic transactions will be included in your Account Statement. 1 Trade confirmations will not be sent to clients participating in the Counsel Advisor Directed Rebalancing service, when a rebalancing occurs or for pre-authorized redemptions of Counsel Funds made to pay for the advisory fee within a fee based account. 1

5 Account Statements: you will receive a detailed client statement either by mail or, if you so choose, via electronic delivery, on a quarterly basis, provided there are securities held in the account at any point during the quarter. Your account statement will summarize the securities held in your account, list all activity over the period and provide a current market value for your holdings as at the end of the reporting period. IPCIC also offers you the ability to securely view your account information online through your Personal Financial Website. Further information about your Personal Financial Website is available through your Advisor or through the IPCIC website: You should review all your transaction trade confirmations and account statements carefully and immediately. Report any errors and omissions, or refer any questions or concerns you may have to your IPCIC Advisor. Products and Services IPCIC is a mutual fund dealer and a member of the Mutual Fund Dealers Association of Canada ( MFDA ), a self-regulatory organization that regulates mutual fund dealers. Under provincial securities legislation, IPCIC is permitted to sell mutual funds and certain other types of products as described in this section. A mutual fund is an investment product that provides a convenient way for individuals to invest their money. The mutual fund uses this money to buy different types of investments on behalf of all of its investors. A portfolio manager makes investment decisions to buy and sell investments such as stocks, bonds or other securities based on the investment objective and investment strategies of the mutual fund, as described in the simplified prospectus of the mutual fund. When investing in a mutual fund, you purchase units or shares in the fund, where each unit or share represents a share of the total pool. IPCIC Advisors are permitted to sell Guaranteed Investment Certificates, an investment product that offers a fixed rate of interest for a specific term. Both principal and interest payments are guaranteed. Cheque Payment Instructions Payment for purchases, other than Guaranteed Investment Certificates, should be made by cheque payable to IPC Investment Corporation - In Trust. It is IPCIC s policy to retain interest earned on client cash held in trust. Payments for the purchase of Guaranteed Investment Certificates should be made by cheque payable to the Financial Institution issuing the certificate. Cheques should not be made payable to your IPCIC Advisor for business conducted through IPCIC. Please contact our Head Office at if you are asked to make a cheque payable to your IPCIC Advisor or any other person, company or entity other than IPC Investment Corporation - In Trust, or a Financial Institution. Note: IPCIC does not accept cash for any transaction. 2

6 Assessing Suitability Taking into consideration your personal and financial circumstances, your IPCIC Advisor will provide the advice and recommendations you need to make informed investment decisions to help you achieve your financial goal. Your IPCIC Advisor can help you identify your level of tolerance for investment risk, provide advice on the types and levels of risk associated with investments and explain how a particular investment will affect the diversification strategy of your portfolio. Together, you and your IPCIC Advisor will develop a financial plan that will: help you set appropriate targets; help you choose the best investment vehicles; and ensure you have the right mix of investments. Securities legislation and MFDA rules require that each recommendation your IPCIC Advisor makes must be suitable for you in relation to your investment objective, risk tolerance and other personal circumstances, often referred to as know-your-client information. Factors taken into consideration when assessing the suitability of a recommendation to purchase, sell, exchange any product or service, includes your: personal circumstances such as age, marital status, employment and dependent information; time horizon, which is when you will need to access a significant portion of the money invested; financial information, which includes your annual income and net worth. Net worth is calculated as estimated liquid assets (assets that are easily converted to cash without penalties) plus fixed assets less estimated liabilities; investment knowledge, which reflects your understanding of investing, investment products and their associated risks. Your Investment knowledge is recorded as either limited, fair, good or sophisticated ; investment objectives, which are your desired results from investing and should relate to the type of investments that will be purchased; and risk tolerance, which is the degree of risk you are willing to assume or can tolerate, taking into consideration your financial ability, time horizon, cash requirement and emotional response to market fluctuations. New Account Application Form The New Account Application Form ensures your IPCIC Advisor asks the appropriate know-your-client questions and gathers sufficient information to further define your risk tolerance, time horizon and investment objectives as required by regulation. It is important that you provide a full and accurate description of your personal circumstances, financial situation, investment objectives, time horizon, risk tolerance and net worth to assist your IPCIC Advisor in meeting your investment goals. You should promptly inform your IPCIC Advisor if there are any changes to this information or if your circumstances have changed materially and could reasonably result in changes to the types of investments appropriate for you. Examples of significant life event change are: marital status, changes in retirement plans or a significant reduction in income. If you place an order and your IPCIC Advisor has not made a recommendation, IPCIC must also determine and advise you before the trade is executed whether the transaction proposed by you is suitable and in keeping with your investment objectives. 3

7 Additionally, IPCIC will make assessments regarding the suitability of the investments held in your account when: a trade is placed on your account; IPCIC or your IPCIC Advisor becomes aware of a material change in your personal circumstances; you transfer assets into your account; and there is a change to the IPCIC Advisor responsible for your account. As a caution, you should be aware that circumstances, other than those identified above, such as significant market fluctuations or a material change to an investment, will not automatically trigger a suitability review. Should you have questions or concerns about your investment suitability, you may contact your IPCIC Advisor at any time to discuss your investment portfolio. IPCIC Nominee Self-Directed Plans IPCIC manages a Nominee Self-Directed Account Program. If you participate in this Program, please be aware that there are annual fees and other charges associated to the Program that should be considered. IPCIC s Nominee Self-Directed Account Program is not currently available to all IPCIC clients. Please speak with your IPCIC Advisor for further information about the Program. Account Fees and Service Charges The following is a current listing of our account fees and service charges. Other applicable account fees are determined by, and paid to, the trustee of your various registered accounts as are service charges related to the IPCIC Nominee Account(s). IPCIC SELF-DIRECTED FEE SCHEDULE* ANNUAL RRSP, RIF, LIF, LRIF Self-Directed RRSP, Spousal RRSP, LRIF & LIRA $125 Self-Directed RRIF & LIF $125 Additional plan $50 Self-Directed plans holding more than $75,000 in Counsel Funds are exempt No Fee TRANSACTION FEES FundServ Trades Non-FundServ Trades No Fee No Fee Withdrawal Fee Partial $50 Full $125 Transfer Out Fee Partial $50 Full $125 Unscheduled RRIF/LIRA payment Fee $50 Regular RRIF payments via cheque $10/Cheque 4

8 MISCELLANEOUS FEES NSF Fees $30 Estate/Bankruptcy/Divorce Settlement per hour $50 ($150 min/$300 max) Account Research per hour $50 Additional Statement $20 *Fees may be subject to change At minimum, we will send you a client statement every calendar quarter. If you hold accounts within an IPCIC Self-Directed Plan, you will receive a quarterly statement that reports your holdings and transactions for the period. Accounts with activity will receive a monthly statement. Referral Arrangements Securities legislation requires an IPCIC Advisor to inform their clients of referral arrangements where they pay or receive referral fees for client referrals. In order to provide products and services that are suitable to meet the financial planning needs of a client, IPCIC has entered into a number of referral arrangements for certain products and services, including, for example, banking services and mortgage products. Referral fees paid under a referral arrangement will vary depending on the product or service purchased by the client. The referral fee may change at any time depending on the products and services being offered by IPCIC; generally a referral fee will be either a percentage of account balances, a percentage of revenue generated or a fixed fee. IPCIC is registered as a mutual fund dealer under securities legislation. A written referral arrangement is entered into prior to paying or receiving a referral fee for client referrals, as required under securities legislation. IPCIC Advisors may also be compensated for client referrals. IPCIC Advisors are required to address any conflict of interest by exercising responsible business judgment, in the best interest of their client. IPCIC Advisors are encouraged to bring any conflict of interest to the attention of their clients as soon as they become aware of them, as applicable. A written disclosure, including information about the calculation of the referral fees and any identified conflict of interest, will be provided to you before you open an account or before any service is provided to you by the person or company receiving the referral. Mutual Fund Management Expenses Generally, all mutual funds have management expenses. These expenses are deducted from the fund and you are not billed directly. The management fee pays for such things as the mutual fund company s investment management, marketing and administrative costs. Each fund also pays its own operating costs such as brokerage fees on securities trading, audit fees and unit holder communications. Management fees and operating costs are charged whether the value of the mutual fund goes up or down. The fund reports the management fee and operating costs it pays each year as a management expense ratio (MER), which is expressed as a percentage of your total investment. These costs are deducted before the fund s performance returns are calculated. For example, if your fund made 12% and the MER was 2%, the reported return for the year would be 10%. 5

9 Advisor Compensation Advisors are compensated for the distribution of investment products and services. The primary business of IPCIC is to provide services to clients through the sale and distribution of mutual funds. In respect of the sale of mutual funds, IPCIC compensates IPCIC Advisors when the securities of the mutual fund are sold under a deferred sales charge option or front-end sales charge option. IPCIC Advisors receive compensation in one or more of the following forms: a sales commission at the time of the initial sale of the securities; an annual trailing commission payable monthly, based on the average monthly value of certain assets of the clients they service that are invested in mutual funds purchased under the deferred sales charge option; an additional annual trailing commission payable annually, based on the value of certain assets of the clients they service that are invested in mutual funds purchased under the deferred sales charge option that are no longer subject to a deferred sales charge. If the securities of the mutual funds are sold under a no-load option (no front-end sales charge and no deferred sales charge), IPCIC Advisors receive compensation in one or more of the following forms by: an annual trailing commission payable monthly based on the value of certain assets of the clients they service that are invested in mutual funds purchased under the no-load option; an additional annual trailing commission (an asset retention commission) payable monthly, based on the value of certain assets of the clients they service that are invested in mutual funds purchased under the no-load option. In certain cases, you and your IPCIC Advisor may decide to set up a fee for a service based account. In that case, you negotiate a fee with your IPCIC Advisor. This fee is generally charged to you on a monthly basis and is often paid through the redemption of fund units in your account. This fee is an alternative to the above noted commission charges and permits the purchase of mutual fund classes that have a lower management expense ratio. You can also speak with your IPCIC Advisor for more details on the compensation that is payable to them. Important Information We are authorized to sell only the products described in the Products and Services section of this booklet; we are not responsible for any other type of business that you may conduct with your IPCIC Advisor. Your IPCIC Advisor may be licensed to sell other products or have another line of business. Your IPCIC Advisor is required to tell you which company he or she is representing for each product offered and, as such, you may be dealing with more than one company depending on the product or service provided. Your IPCIC Advisor is registered with the Provincial or Territorial Securities Commission for the sale of mutual funds and may be registered with the Provincial or Territorial Insurance Council for the sale of insurance products. IPCIC is not liable or responsible for products or services presented on behalf of companies other than those of IPCIC. We do not allow IPCIC Advisors to borrow money from, or lend money to, clients. If you have any questions on how these may apply to you, please contact us. 6

10 Client Responsibilities As a client of IPCIC, it is important that you: provide a full and accurate description of your financial situation, investment objectives and risk tolerance to your IPCIC Advisor; this will assist him/her in recommending financial solutions to meet your investment goals. promptly inform your IPCIC Advisor of any material change relating to your personal information, financial or life circumstances; this will allow your IPCIC Advisor to assess whether changes to your investment strategy are necessary. A material change would be a change to any information that could reasonably result in changes to the types of investments appropriate for you, such as income level, investment objectives, risk tolerance, time horizon or net worth. Other examples of a material change may include employment status, marital status or changes to your retirement plans. carefully review all account documentation, sales literature and other documents provided by your IPCIC Advisor. make sure you understand all fees and costs associated with your account. make sure you are aware of possible risks and returns on your investment. Should your require any additional information, other than what your IPCIC Advisor is able to provide, please contact our Advisor Services Department by telephone at or by at advisor411mfda@ipcc.ca. 7

11 Statement of Related Parties The following provides a list of Related Registrants as well as Related and Connected Issuers to IPC Investment Corporation (IPCIC) as of November 5, RELATED REGISTRANTS Canada Life Asset Management Limited I.G. International Management Limited Counsel Portfolio Services Inc. I.G. Investment Management (Hong Kong) Limited IPC Investment Corporation Quadrus Investment Services Ltd. IPC Securities Corporation GLC Asset Management Group Ltd. Mackenzie Financial Corporation Setanta Asset Management Limited Investors Group Securities Inc. Putnam Investments Inc. Investors Group Financial Services Inc. PanAgora Asset Management Inc. I.G. Investment Management Ltd. Related Registrants may include other dealers and advisers that become subsidiaries of Power Financial Corporation. RELATED AND CONNECTED ISSUERS Power Financial Corporation Power Corporation of Canada Groupe Bruxelles Lambert S.A. Bellus Health Inc. Pargesa Holdings S.A. Imerys S.A. Lafarge S.A. GP Strategies Corp. Hudson Global Inc. Great-West Lifeco Inc. Great-West Life Capital Trust Great-West Lifeco Finance (Delaware) LP Great-West Lifeco Finance (Delaware) LP II Independent Planning Group Inc. 2 Investment Planning Counsel Inc. IPC Portfolio Services Inc. The Canada Life Assurance Company Canada Life Capital Trust IGM Financial Inc. Investors Group Trust Co. Ltd. Investors Syndicate Limited Mackenzie Mutual Funds Investors Group Mutual Funds Counsel Portfolio Services Inc. Quadrus Mutual Funds Mackenzie Master Limited Partnership Setanta Constituted Unit Trusts Putnam Private Pooled Funds Howson Tattersall Pool Funds For further information on our Statement of Related Parties, including definitions, or for a complete version of IPCIC s Statement of Policies, please contact our Compliance Department. 2 Effective as of December 2,

12 IPC Investment Corporation 2680 Skymark Ave, Suite 700 Mississauga, ON Tel: or Fax: Trademarks owned by Investment Planning Counsel Inc. and licensed to its subsidiary corporations. Investment Planning Counsel, is a fully integrated Wealth Management Company. Mutual Funds available through IPC Investment Corporation and IPC Securities Corporation. Securities available through IPC Securities Corporation, a member of the Canadian Investor Protection Fund. Insurance products available through IPC Estate Services Inc. Mortgage Broker Services provided by Invis Inc. (Lic# ON / SK ) or Mortgage Intelligence Inc. (Lic# ON / SK ). IPCCMPL003 (E) Dec2013