E*Trade Canada Securities Corp. has received an exemption from the requirements to send trade confirmations for trades that the dealer executes on behalf of customer accounts fully managed by unrelated adviser.

The exemption applies to accounts that are opened in customer’s name, provided that the customer has informed the dealer that he or she does not want to receive the trade confirmation for such managed account trades. The client must consent in writing to the waiver; all trade confirmations for the account of the client must be delivered by E*Trade to the client’s adviser; clients will continue to receive account statements from E*Trade; and, they must also receive additional quarterly disclosure.

The exemption notice reports that: some advisers utilize the services of E*Trade to execute trades for the benefit of clients whose assets they manage; E*Trade has entered arrangements with certain advisers by which their clients may open accounts at E*Trade that are managed by the advisers to obtain trade execution and custody services; the advisers have trading authorization over their clients’ accounts at E*Trade and E*Trade executes trades for these accounts only as directed by the adviser.

It also notes that clients who receive trading and account information from both the adviser and E*Trade may receive information which is duplicative and, as a result, confusing and contrary to the expectations of clients who engage advisers in order to minimize the inconvenience and time commitment that may be associated with managing their portfolios. Each client will have the option of choosing whether or not to receive trade confirmations directly from E*Trade.

In the event a client does not wish to receive trade confirmations directly from E*Trade, it will be required to provide its consent in writing, which consent can be revoked at any time. E*Trade will continue to provide statements to the clients. The advisers will also deliver to each client who consents to the waiver, at least quarterly, a statement that contains disclosure of the transactions that have been effected within the client’s account at E*Trade during the period covered by the statement.

Each client will also have access, upon request, to information regarding their current account transactions and current account balance.