How You and Your Portfolio are Protected
Clients of the Index House will have their portfolio (cash and securities) held in an account at a separate financial institution called a "custodian" (National Bank Correspondent Network, a division of National Bank). Like a safety deposit box for your portfolio, the main purpose of the custodian is to safeguard your assets.
The custodian provides monthly statements as well as online access to your accounts, verifying your holdings and account activity. These are independent of any reporting offered by The Index House.
Granting the Index House trading authority allows your portfolio holdings to be bought or sold in the custodian account according to the investment policy statement authorized by you during account setup.
Deposits to your accounts are made payable to the custodian (NBCN) and not to the advisor or The Index House. If you wish to withdraw money from your portfolio the funds can be electronically fund transferred (EFT) to your bank account if you have previously provided a void cheque and your banking information is on record with the custodian. A cheque can also be mailed from the custodian to the address on your account. All other requests require a "letter of direction" with your signature and provided to the custodian for processing.
A custodial account represents the highest standard in protecting you and your portfolio. It is different than brokerage firms, which act as the custodian of the assets they manage. The custodian is also responsible for the settlement of trades, the collection of investment income and the issuance of year-end tax slips.
NBCN: National Bank Correspondent Network (NBCN) is a provider of custody services, which support independent portfolio managers. NBCN is a member of the Canadian Investor Protection Fund (CIPF).
CIPF: The Canadian Investor Protection Fund was created by the investment industry to ensure that client assets are protected if an investment dealer who is a CIPF member becomes insolvent. The coverage limit is $1,000,000 for general accounts and another $1,000,000 for registered accounts (RSP etc.) per investor. The $1,000,000 coverage applies to your shortfall, which in most cases will be substantially less than the value of your account. It's important to remember that coverage applies to losses as a result of the insolvency of a CIPF member and market losses are not covered.
Chris Turnbull is registered with securities regulators in British Columbia, Alberta and Ontario as an Advising Representative. The Index House is a division of Polaris Financial Inc., which is registered as a Portfolio Manager in the provinces of British Columbia, Alberta, Ontario, Quebec, and Nova Scotia. These registrations require the advisor and the firm to follow specific rules of conduct and operations such as, client confidentiality and adhering to ethical practices.
As a Private Counsel, The Index House owes its clients a fiduciary duty, a requirement to act in their best interests and representing the highest standard on par with other professionals such as, doctors, accountants, and lawyers. The Index House is subject to periodic audits by securities regulators.
Individual and firm registration
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