Online brokerage Questrade now considering federal banking license

Trademark search for Quest Bank, suggesting types of services offered are widespread
Content of the article
Questrade Financial Group Inc. is considering banking license, according to notice in Federal Government Journal, as online brokerage continues to diversify from buying and selling stocks to a wider variety of financial services .
Advertising
This ad has not yet loaded, but your article continues below.
Content of the article
Questrade, based in Toronto, plans to file an application with the federal government for a legal instrument, known as letters patent, that would incorporate “Quest Bank,” a Nov. 16 notice said in the Canada Gazette.
The company also filed for a trademark application for Quest Bank in October, according to a government registry, which indicated that the lender could provide a wide range of basic banking services, as well as those related to investment banking, to capital. -risk and insurance. The app suggested that Quest Bank might also offer a credit card loyalty program.
Questrade agrees to pay OSC $ 2.9 million for acting contrary to the public interest
True North Mortgage to open its own bank
Banco Santander in Spain considers Canadian banking license as more European lenders cross the pond
Advertising
This ad has not yet loaded, but your article continues below.
Content of the article
Questrade was launched in 1999 and now has over $ 9 billion in assets. The company offers self-managed investments and a robo-consulting activity. He is also known, among other things, for a series of television commercials in which investors dispute the level of fees they pay.
Recently, however, Questrade has also grown through a pair of partnerships and an acquisition.
In May, the company announced a partnership with New Brunswick-based fintech Passiv, which creates wealth management tools for self-directed investors. The following month, independent investment bank INFOR Financial Inc. said it had reached a deal that would give Questrade’s retail clients better access to INFOR’s newly issued securities offerings.
Advertising
This ad has not yet loaded, but your article continues below.
Content of the article
“This is a timely agreement for both parties – Questrade has grown rapidly by continuing to improve and expand its investment offerings, while INFOR Financial increases the supply of new offerings from broadcast for the retail market, ”a press release said.
Perhaps the clearest indication of Questrade’s plan to go into new business is its acquisition earlier this year (for an undisclosed amount) of Mississauga-based Community Trust Co., a regulated trust company. federal government that accepts deposits and grants loans.
Questrade already sees itself as more of a financial institution than just a discount broker, according to Glenn LaCoste, president and CEO of research firm Surviscor.
In addition, the brokerage business is already under pressure as companies (especially in the United States) have lowered their commissions to zero.
Advertising
This ad has not yet loaded, but your article continues below.
Content of the article
“I think this one seems like a logical place to go to control their next financial services move,” LaCoste said. “Margins are very slim right now in the brokerage space.”
Questrade’s banking application will now be reviewed by the Office of the Superintendent of Financial Institutions, after which the regulator will make a recommendation to the federal Minister of Finance. Should the Minister decide to issue the Letters Patent, Questrade would still be subject to further scrutiny before OSFI decides whether to order Quest Bank to commence and operate.
“The publication of this notice should not be interpreted as proof that letters patent will be issued to incorporate the bank,” said the Canada Gazette notice. “The granting of Letters Patent will depend on the normal Bank Act review process and on the discretion of the Minister of Finance.
Questrade declined to comment.
Financial post
• Email: [email protected] | Twitter: Geoff zochodne
Advertising
This ad has not yet loaded, but your article continues below.