(July 6 – 18:00 ET) – Following on the Quebec Securities Commission’s decision to ease the suitability or “know your client” rule, National Bank Discount Brokerage Inc. has announced plans to stop enforcing the rule.
Clients will now have the option to be able to execute trades via its Web site or automated telephone system, without having them vetted by a broker provided they give their consent.
During the initial trial phase, approximately 10 Quebec clients will be able to buy securities without a broker having to check whether the trade is consistent with their investment goals or risk tolerance.
“As a discount broker, our role is to execute clients’ trades as quickly and efficiently as possible,” stated Yves G. Breton, president of National Bank Discount Brokerage. “With the lifting of this rule, we can speed up processing and allow clients to carry out their trades almost instantaneously.” Checking the suitability of trades delays their execution by several minutes which can prove costly to investors, particularly when trading highly volatile stocks.
Once the trial phase has been completed and the procedure validated, the firm intends to offer all its clients who have a password and Internet user code the option of executing trades without having them reviewed.
Clients wishing to take advantage of this option must first sign an authorization form or give their consent by telephone.
-IE Staff