Shift from third-party products not “dramatic” says TD wealth head

TD is one of several banks that is focusing on its own products and ending third-party offerings

Shift from third-party products not “dramatic” says TD wealth head
Steve Randall

TD Asset Management advisors will pivot their clients’ portfolios away from third-party products as part of client-focused regulatory reforms.

But the head of the bank’s wealth management and insurance business does not believe this a “dramatic move” because most of the funds its clients invest in are TD products anyway with just 15% from third parties.

Leo Salom told the Globe and Mail that the bank was working with the Ontario Securities Commission and IIROC to ensure the correct implementation of rules requiring advisors to better understand the products they recommend to clients.

“We do believe that offering a proprietary shelf is consistent with the client-focused reforms,” Salom told the media outlet, adding that TD will fulfil its obligations to disclose the relationship of products to clients and apply due diligence to confirm suitability.

TD, along with CIBC and RBC have all opted to stop selling products from other investment firms, although this does not apply to DIY investment solutions or full-service brokerage accounts.

The bank’s TD Wealth Private Investment Advice still enables investors to invest in third-party products but generally requires a minimum $500K of investible assets to qualify for an investment advisor relationship.

The Globe and Mail reports that around 100 TD financial planners have already begun to move clients over to TD Wealth Private Investment Advice and will continue to offer third-party investment products.