Industrial Alliance Securities Inc. says it has entered into a business development and services agreement with KingsGate Wealth Management Services Ltd. that will include the acquisition of certain assets of its securities subsidiary, KingsGate Securities Ltd. The deal, which is subject to regulator approval, will allow Industrial Alliance Securities to spearhead its expansion in the Ontario securities market.

KingsGate Securities Ltd. is a full service securities brokerage firm that offers a complete spectrum of portfolio investment management services to over 5,000 account holders.

Through the agreement, which was announced today, Industrial Alliance Securities will increase its assets under administration by over 30% and cross the one billion dollar mark to reach $1.2 billion as at Dec. 31, 2004.

“The partnership with KingsGate falls directly within the scope of our development strategy and marks a significant entry point to the Ontario market for Industrial Alliance Securities,” said Gaétan Plante, President, Industrial Alliance Securities. “We are looking forward to working with current management of KingsGate to jointly expand the business.”

“Working with Industrial Alliance gives us the scale and access to capital needed to successfully compete in this rapidly evolving market,” said Fred Roberts, co-founder and CEO of the KingsGate Group of Companies.

“We will aggressively market in the Ontario region with an eye to the West for growth. We see this new relationship with Industrial Alliance as an opportunity to help us in our recruitment process and, as a hybrid platform, we will be targeting planners, brokers and firms,” Roberts added.

Industrial Alliance Insurance and Financial Services Inc., the parent of company of Industrial Alliance Securities, began to actively develop the wealth management sector about four years ago. This acquisition will bring the company’s wealth assets comprising mutual funds, securities, private wealth management and institutional management to close to $9 billion under management and administration. Industrial Alliance also manages $5.9 billion in segregated fund assets.