Federation of Canadian Independent Deposit Brokers Inc (FCIDB)

October 15, 2006 09:00 ET

Independent deposit brokers set new standards

FCIDB standards raise the estimated $40+ billion GIC Broker industry business practices for consumers and protection to a higher level.

Attention: Assignment Editor, Business/Financial Editor, News Editor TORONTO,--(CCNMatthews - Oct. 15, 2006) - The Federation of Canadian Independent Deposit Brokers is introducing a set of new standards and business initiatives to better meet the needs of its customers and members.

"The independent deposit brokerage community recognized the need for unified procedures in today's fast-evolving investment arena, and collaborated to develop a framework for sound business practices that protects client privacy and data security," says David Newman, president of the FCIDB, within his address to the 2006 national conference being held in Toronto from Oct. 15-17. "It's part of our commitment to support our mandate as a professional standards organization."

The FCIDB offers the deposit-gathering channel both the national exposure and the ear of regulators to fulfil a much-needed presence in the marketplace for investors whose major concern is guaranteed income and security of capital, said Newman. "No other organization exists to champion the rights of the deposit consumer."

Key components of the initiative include:

· A new compliance guide and audit procedures publication that will help independent deposit brokers adhere to and support increasingly stringent government regulations, including anti-money laundering legislation. Members must agree to follow the published standardized practices and abide by a code of ethics.

· More detailed documentation for membership application and the introduction of industry-specific codes that will help manage privacy and security issues over time. The codes will serve as the building blocks for electronic processing and business risk and management tools in the future.

· An updated accreditation program to strengthen the credentials of independent deposit brokers and meet the rising demands of the marketplace. Qualifying recipients earn the Registered Deposit Brokers (RDB) designation.

"Consumers of financial products and services are demanding better-educated advisers and higher levels of product specialization," said Newman. "The RDB accreditation will identify those independent brokers who have met high standards of product knowledge and who are committed to ongoing professional development."

The rigorous course, available on-line through the Investment Funds Institute of Canada (IFIC), and qualifies for up to 30 continuing education (CE) credits for financial professionals in a number of industry associations.

In addition, the federation is developing a series of easy-to-understand articles to educate the public about deposit investments and services.

"We've significantly raised the bar on behalf of all our stakeholders," said Newman. "Together, these initiatives will contribute to a stronger and more secure industry, increasing financial security and wealth for Canadians across the country."

About the FCIDB

The Federation of Canadian Independent Deposit Brokers (FCIDB) was incorporated in 1987 with membership of 173 deposit broker firms and 35 financial institutional members. As a national, industry-wide professional standards organization (PSO) for deposit brokers and agents, it continually sets professional conduct and procedural standards for its members and provides a context within which member deposit brokers operate via a code of ethics declaration.

The original mandate of the FCIDB was to work together with government agencies, financial institutions and consumers to define the role of the deposit broker as an intermediary between financial institutions and consumers. It now administers a national registry and referral service for safety-conscious investors seeking deposit brokers and for financial institutions seeking qualified advisers.

Deposit brokers offer no-fee, one-stop shopping for purchasing guaranteed investment products, with most members also handling a full range of investment options such as mutual funds, annuities and life insurance for all kinds of accounts, including RRSPs, RRIFs, LIFs and pensions. GIC services are designed to help the client achieve the highest possible return on their investments.

The primary objective of the FCIDB is to protect the best interests of consumers. It offers security by ensuring that member deposit brokers comply with the highest standards of financial responsibility and professional business practices. Working closely with CDIC, financial institutions and federal and provincial regulators, the FCIDB lobbies on behalf of investors and members alike. It was instrumental in persuading the federal government to review CDIC's deposit protection coverage, with the result that depositors are now protected up to $100,000, an increase of $40,000.

Contact information:
David Newman, President

Mary Rygiel, Vice-President

Orville Sleen, Executive Director

Federation of Canadian Independent Deposit Brokers
49 High St., Suite 408-2
Barrie, ON
L4N 5J4

Web site: http://www.fcidb.com/

Phone: (705) 730-7599
Toll-Free: 1-866-261-6263
E-mail: headoffice@fcidb.com

Contact Information