There is a possibility that conflicts of interest may arise with the business that PSC conducts with you.
Conflicts may involve you and PSC, you and other clients of PSC, or PSC and its connected companies. The Securities Commissions and the MFDA require dealers and its representatives to take reasonable steps to identify current conflicts of interest and potential conflicts of interest.
PSC has identified some conflicts of interest that may arise in the ordinary course of our business:
- Compensation paid to PSC based on the commission type of products sold (including FEL, DSC, LL and trailer fees)
- Your advisor may recommend more contributions with a particular fund company if it provides you with a lower management fee
- Compensation paid to PSC as a negotiated fee that is charged as a percentage of the value of the assets in your account (fee-based)
- Compensation received for referring you to external portfolio managers and investment dealers
- Compensation paid to PSC based on sales from related issuers in connection with PSC’s Investment Fund Manager services
- PSC may collect nominal due diligence fees for various exempt market product issuers. The offering documents provide full disclosure of all relationships we may have with the issuer
- Your advisor may not borrow from, lend to, or invest with you
- Your advisor may not act under any power of attorney or under any control position with you.
PSC has adopted policies and procedures to assist in managing potential conflicts of interest.
The conflict must be addressed by the exercise of responsible business judgment, influenced only by the best interests of the client. Responsible business judgment includes an assessment of materiality, including both the likelihood of events and magnitude of potential client harm.
If we cannot effectively address a material conflict in your best interests, or the conflict is otherwise prohibited by law, we avoid it.
