For Luc Bertrand, his new role at Montreal-based National Bank of Canada will allow him to play to his natural strengths: \u201cI\u2019ll be doing what I really enjoy doing, which is talking to clients and working on deals.\u201d
In early February, the 56-year-old financial services industry veteran and former head of the Montreal Exchange will rejoin National Bank, where he had worked for a two-year stint in the late 1990s, to become vice chairman \u2014 a newly created position. In addition to working on deals, Bertrand will serve as an advisor to senior management.
Bertrand, who will report directly to Louis Vachon, National Bank\u2019s president and CEO, will be responsible for developing and maintaining ties with corporate and institutional clients. \u201cWith how the world of finance operates,\u201d Bertrand says, \u201cthose relationships are key.\u201d
Bertrand will also serve as a strategic advisor, particularly in the area of government relations and derivatives regulation, which will be his top policy priority at the bank. Bertrand is widely credited with transforming the MX from a regional equities exchange into a successful national derivatives exchange during his nine years at the helm.
\u201cLike at all banks, every day is a busy derivatives day,\u201d Bertrand says. \u201cIt\u2019s an issue that\u2019s not only important to the bank, but it\u2019s also important to the clients of the bank.\u201d
Derivatives have become a pressing issue for capital markets everywhere. G20 countries have committed to moving over-the-counter derivatives \u2014privately negotiated derivatives that aren\u2019t traded on exchanges \u2014 onto an exchange or platform and clearing them through a central counterparty by the 2012 yearend. Many believe it was the lack of transparency involved in the OTC derivatives market that contributed to the severity of the financial crisis in 2008.
Bertrand is a proponent of the concept of a central counterparty that serves as the intermediary of all trades between members as the basis for a solution to the OTC derivatives question. \u201cWhoever is a member of the clearing corporation is accountable to it and shares part of the risk,\u201d Bertrand says. \u201cIt\u2019s a great mechanism, and provides the ultimate peer pressure.\u201d
The Canadian Derivatives Clearing Corp., <\/b> an MX subsidiary, serves as a central counterparty for exchange-traded derivatives. Bertrand believes that there are elements of the CDCC model that can be applied to a central counterparty for the OTC derivatives world.
But, Bertrand stresses, any new regulatory structure for OTC derivatives shouldn\u2019t stifle innovation and enterprise: \u201cIt\u2019s important not to throw the baby out with the bathwater. My philosophy with these things is to find the right balances, provide sufficient oversight, provide the authorities the proper instruments and tools to understand what\u2019s going on, so that when there is a crisis \u2014 because invariably there will be, that\u2019s just the nature of the beast \u2014 the authorities can monitor the situation and intervene.\u201d
National Bank is not alone among Canadian banks in having \u201crainmakers\u201d on its executive team, although the job is defined differently from firm to firm. On Jan. 1, former Conservative cabinet minister Jim Prentice joined Toronto-based Canadian Imperial Bank of Commerce<\/b> as vice chairman and a member of that bank\u2019s senior executive team.@page_break@Both well regarded and well connected in Montreal and in financial centres across Canada, Bertrand stands ready to help National Bank pursue its growth strategies both in Quebec and throughout the country: \u201cTo me, there are no boundaries when it comes to making money. Admittedly, though, you have to be strong in your main place of business to be strong elsewhere.\u201d
A native of Cornwall, Ont., Bertrand earned a degree in philosophy from the University of Ottawa and began his financial services career in Toronto as a broker on the institutional sales side. He also completed the Canadian securities course and its U.S. equivalent, which was known as the Series 7 at the time.
In 1985, Bertrand co-founded Montreal-based brokerage firm Pollitt Bertrand. Later, he sold his stake in that firm and joined Barclays de Zoete Wedd. He was part of a management buyout of that firm, which was renamed Deacon Capital Corp.
In 1998, Bertrand joined National Bank, at which he held a series of senior positions, including vice president and managing director of the institutional sales group at the bank\u2019s brokerage arm.
Bertrand\u2019s involvement with the MX began in 1992, when he first served on the exchange\u2019s board. In 1996, he became vice chairman; in 1998, its chairman.
In the late 1990s, Bertrand was involved in the reorganization of Canada\u2019s exchanges, which saw the MX become the country\u2019s primary derivatives exchange. In 2000, he took over the top job at the MX, building its business during a boom in the global derivatives market. \u201cThe business model we put in place worked,\u201d he says, \u201cand we had great growth.\u201d
In 2008, Bertrand was a primary player in the merger of the MX and the bigger Toronto Stock Exchange in a deal valued at $1.1 billion. He became deputy CEO of the newly formed TMX Group Inc. and was considered a candidate for the top job, but that appointment went instead to Thomas Kloet, a U.S. exchange industry veteran. A year later, Bertrand announced he was leaving the TMX and his stewardship of the MX. Bertrand explains why he left: \u201cI saw through the transaction and I felt I had done my work, and there was a good team in place. My feeling was that it was time to go, and I think it was the right decision.\u201d
Bertrand has remained busy. He served on the Advisory Committee on Financing created in April 2009 by federal Finance Minister Jim Flaherty to advise on issues related to the credit crisis. And Bertrand continues to serve on the board of Le Centre Financier International de Montr\u00e9al, a group dedicated to promoting the city as a global financial services centre.
Bertrand was the lead negotiator for a group led by three brothers of Montreal\u2019s Molson family in their successful bid to buy the Montreal Canadiens hockey team and the Bell Centre arena in 2009. Bertrand is part of the team\u2019s ownership group, which also includes National Bank, and is a member of the board of directors of the team\u2019s parent company, CH Group.
Says Bertrand, a longtime fan of the Canadiens: \u201cI was quite honoured to be part of the process.\u201d\tIE<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"
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