Aviso gets regulatory green light to merge two dealer firms

CIRO has approved the combination of the firm’s mutual fund and investment units

Aviso gets regulatory green light to merge two dealer firms
Steve Randall

Aviso Wealth will merge its mutual fund dealer and investment dealer units into a single dual-registered entity having receive approval from the regulator.

The Toronto-based firm’s plan to combine mutual fund dealer Credential Asset Management Inc., and investment dealer, Credential Qtrade Securities Inc., into Aviso Financial Inc. has been given the green light by the Canadian Investment Regulatory Organization (CIRO) and the unified entity will go live on April 1, 2024.

The firm’s president and CEO, Bill Packham, says bringing the two sides of the business together will streamline processes and aid personalization of services which will benefit its financial services partners, the 3,000 advisors who use its platforms and their clients.

"Our ability to operate a dual-registered dealer will bring significant benefits to advisors and investors. Advisors who are building their careers will be able to transition more easily from a mutual funds license to a full-securities license,” he said. “And investors can have a consistent, uninterrupted experience as their needs become more complex and they require different services and solutions."

Combining two parts of the business into one was a technical challenge for the Aviso team, but George Ho, SVP, chief digital and technology officer, says it has been well planned.

"Aviso has meticulously prepared for the opportunity to streamline our dealer operations, including moving all client records to a single book of record on Dataphile," he said. "This is part of our broader strategy to empower our clients with best-in-class products, services and expertise built on a scalable, integrated wealth services ecosystem."

New approach

The ability to operate as a dual-registered dealer classification is a relatively new one which was introduced following a CIRO consultation with stakeholders.

So far, only nine firms have taken advantage of the approach, but Andrew Kriegler, inaugural president, and CEO of CIRO, told Wealth Professional last year that he expects the number of applications to spike, noting that corporate entities often take time to decide on this kind of change, especially as it is only the early stage of adoption by the industry.