Toronto-based Ernst & Young LLP signed an agreement April 22 to sell Ernst & Young Investment Advisers Inc. to a management-led financial group. The new firm is called I-3 Advisors Inc. — the three Is being information, innovation and independence — and it will serve Ernst & Young Investment Advisers’ 120 clients who have approximately $2 billion in assets under advisement.

“We had a team meeting and I told everybody at 5 p.m. to have a list of 10 potential names the next morning,” says June Ntazinda, former president of Ernst & Young Investment Advisers Inc. and president and CEO of the new firm which will have offices in Toronto and Winnipeg.
“Everybody went home and thought of names, and the next day we put them all up on a board. One of our analysts came up with the name we chose

The reason Ernst & Young sold its advisory business was to allow it to focus on its core competencies — audit, transaction services and tax — says Steven Heipel, manager of media relations at Toronto-based Ernst & Young. “This sale is a great thing for clients of E&Y and the new investment advisory firm,” he says.

“And, with what is going on in the U.S., accounting firms are now looking at each of their businesses and making sure there is no potential for conflict of interest,” adds Ntazinda. “When the U.S. looked at its investment advisory practice, it decided there was a perceived conflict of interest, although not an actual one. In Canada, while there is less of that perception, everyone is still pretty sensitive to any perceived conflict.

“We were a very successful practice so I was interested in purchasing the business, and we did just that. Ernst & Young has been very supportive,” she adds.

Along with other private investors, Ntazinda will own a significant equity interest in the company. Financial details of the transaction have not been released.

The new firm will work with families and institutional clients to develop investment strategies and provide independent advice on an ongoing basis. By September 2005, I-3 will have a staff of 11, including four investment counsellors and three analysts.

“Anyone who knows me has been waiting for this to happen. The team is just as excited as I am. I love our clients and think it’s a service that will continue to gather momentum,” Ntazinda says. IE