Ekaton Wealth Management
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Overview

Only through sound governance and compliance structures can client alignment be achieved and maintained.

Investment Policy Statement

The presence of an IPS or Investment Policy Statement helps to clearly communicate to all relevant parties the procedures, investment philosophy, guidelines and constraints to be adhered to by the parties. It can be seen as a directive from the client to the investment steward or manager about how the money is to be managed, but at the same time the IPS should provide the guidelines for all investment decisions and responsibilities of each party. As a policy document rather than an implementation directive, the IPS should provide guidance for how investment decisions will be made; it should not be a list of the specific securities to be used.

When the investor is an individual client, as a general rule, the investment steward or manager (or financial advisor) has the responsibility of creating the document, since the steward or manager is generally more familiar with its purpose and normal content. Both the steward or manager and the client generally sign the document, indicating acknowledgment of, and agreement to, its several parts. This can serve to protect both parties in the event of a future disagreement, as long as they have respectively adhered to the content of the IPS. A properly written Investment Policy Statement can be critical in minimizing the legal liability of those serving in a fiduciary capacity (e.g., qualified plan trustees and trustees of irrevocable trusts, endowments, foundations and charitable trusts).

Today, use of an IPS with each investment client is now considered a best practice for investment stewards or managers and should be expected by clients hiring a professional investment steward or manager.

The presence of an IPS helps to create an environment of transparency in the relationship between client and steward or manager. The IPS offers clients a better understanding of what to expect from their steward or manager. That clarity generally helps to build a much higher level of trust and respect and it helps ensure the investment steward or manager is aware of the expectations of the client.

Ontario Securities Commission

Maintaining regulatory compliance is of utmost importance to Ekaton. Ekaton is registered with the Ontario Securities Commission, which regularly monitors the activities of its registrants, ensuring that it complies with securities regulations.

Portfolio Management Association of Canada

All of our carefully selected asset managers are members of the Portfolio Management Association of Canada (PMAC).

The purpose of PMAC is to advocate the highest standards of unbiased portfolio management in the interests of the investors served by members.

All firms that are members of PMAC have responsibilities to their clients. Portfolio managers must commit to the following:

  1. Act in a professional and ethical manner at all times;
  2. Act for the benefit of clients;
  3. Act with independence and objectivity;
  4. Act with skill, competence and diligence;
  5. Communicate with clients in a timely and accurate manner; and
  6. Uphold the applicable rules governing capital markets.

All members of PMAC are regulated by provincial securities commissions to ensure firms meet applicable regulatory requirements. Its membership criteria require complete independence in portfolio management activities and encourage policies and practices that help grow and protect investor assets.

CFA Institute's Code of Ethics and Standards of Professional Conduct

We uphold the highest level of ethical behaviour and practice standards and follow the CFA Institute's Code of Ethics and Standards of Professional Conduct. Click here for a link to the CFA Institute's Code and Standards.