National Bank Discount Brokerage Becomes First Canadian Broker to Stop Applying Suitability Rule

Further to the Quebec Securities Commission's decision to ease the suitability or "know your client" rule, National Bank Discount Brokerage Inc. has announced plans to start offering clients right away the possibility of executing trades via its InvesNET web site or its Dial-a-Quote 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 one of the broker's representatives having to check first 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 does in fact delay their execution by several minutes which can prove very costly, particularly when trading highly volatile stocks.

Once the trial phase has been completed and the procedure validated, National Bank Discount Brokerage 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 the authorization form that will be sent to them or give their consent by telephone.

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