Calgary-based Leede Financial Markets Inc. and Toronto-based Jones, Gable and Co. Ltd. announced on Thursday that they have merged to form Leede Jones Gable Inc. in an effort to be able to compete better in today’s intense regulatory environment.
Specifically, the costs related to meet the new regulatory requirements of the second phase of the client relationship model (CRM2) was one reason for the decision to merge the two independent investment dealers, according to Bob Harrison, Leede’s president and CEO.
“We’ve really had to beef up our compliance department [as a result of CRM2],” says Harrison, adding that the merger will help the firm find savings and economies of scale.
Another reason for the merger is to give the firms a more national footprint, Harrison says: “[Jones, Gable] is stronger in the East, where we’ve got very little presence, and we’re stronger in the West, where they’ve got very little presence. And combined, we’re a much stronger entity.”
Advisors at Leede and Jones, Gable likely won’t see much change in their day-to-day businesses, says Harrison, with the exception of representation on bought deals out of Ontario for Leede advisors and a new technology system for Jones, Gable advisors. Says Harrison: “They’ll integrate into [Leede’s] system because our system is a more robust system.”
Harrison will be president and CEO at the merged investment dealer while Donald Ross, formerly chairman of Jones, Gable and Co., will remain in that role with the new firm. Leede’s current chairman, Gord Medland, will become vice chairman of the new dealer.
“Combining with Leede allows us to retain the values that have resulted in our firm enjoying 50 years of success, while at the same time making the changes necessary to adapt to an increasingly challenging environment,” says Ross in a statement. “This partnership will allow us to better serve our clients, and create a very attractive environment for capable independent minded advisors across Canada.”
The merged firm will maintain the independent identity of its predecessors and will employ more than 150 licensed investment advisors and portfolio managers. It will be headquartered in Calgary and be registered as an investment dealer in all Canadian provinces and territories. Although the merger was effective Oct. 1, it is still subject to regulatory approvals.