Fidelity Investments Canada Ltd. said Tuesday that it is abandoning its fledgling foray into the correspondent brokerage business.

The firm is winding down its Fidelity Intermediary Services Co. subsidiary, which it incorporated in 2001, cutting 150 jobs in the process.

The unit was launched to offer an integrated technology platform and correspondent service for Canadian wealth management firms including financial planners, mutual fund dealers and securities dealers. It was not yet fully operational.

“We made this decision because our costs were increasing substantially as we expanded the service to accommodate the changing demands of the industry. Consolidation in the industry has accelerated, reducing the likelihood of us achieving the required market share and in turn the revenue to offset the increased investment,” said Fidelity Canada president Jeff Carney in a statement. As well, postponed capital spending among dealers starved Fidelity for revenue.

Carney noted that Fidelity will continue to focus on building its core investment management business in Canada. Of the 150 jobs lost, Fidelity will attempt to find positions for some of those people elsewhere at the company.