(July 5 – 11:00 ET) – Fidelity Investments Canada Ltd. announced today that it plans to create a comprehensive service for investment intermediaries such as mutual fund dealers, financial planning and wealth management firms, and securities dealers.
The new company will offer Internet-based client account management tools and technology, along with administration, processing and record keeping services.
“This will be the most comprehensive outsourcing solution for financial intermediaries in Canada,” David Denison, president of Fidelity Investments Canada Ltd., said in a press release.
“We believe that many advisor organizations would prefer to focus on those activities through which they add the most value — providing financial planning, investment advice and other elements of client service. This new service company offers ‘one-stop shopping’ for the complex technology and infrastructure needed to meet those demands.”
“We are making this major commitment to help intermediaries and their advisors focus on providing financial advice, rather than on technology, operations and administration,” added Denison. “Canada has long been an advice-oriented market and we expect this to continue.”
Denison said the new initiative represents an important step in Fidelity’s strategy to leverage its global capabilities and build upon its successful mutual fund business in Canada. Over the past 10 years, Fidelity has built a similar outsourcing business in the U.S.
“Large numbers of financial intermediaries in the U.S. have chosen to outsource various aspects of their business,” said Denison, ” and we believe industry changes in Canada are going to drive a similar trend here. We intend to leverage all of Fidelity’s extensive experience to support our Canadian distribution partners.”
Fidelity’s Canadian intermediary service will be built around Star Data System’s e-settlement technology. It will support the service and operating needs of all types of intermediaries. Fidelity expects to launch the new service in spring 2001.
-IE Staff