TORONTO–A number of credit union-related institutions in this country are forming a sizeable new wealth management company.
Desjardins Group, The CUMIS Group and a partnership of five provincial credit union centrals have agreed to merge operations of their subsidiaries to create a new independent wealth manager in Canada with $55-billion in assets.
The deal combines the businesses of Credential Financial, Qtrade Canada, and NEI Investments.
The new entity, to be called Aviso Wealth, will be headquartered in Toronto and Vancouver, B.C., and will serve over 500,000 clients in Canada.
Aviso Wealth will offer wealth management, asset management, online brokerage and digital advice, mutual funds and correspondent services, the company said.
Aviso Wealth will be equally owned by Desjardins and a limited partnership of the Centrals and CUMIS, and will be headed by Bill Packham, who currently serves as the CEO of Qtrade Canada.
The deal is expected to be wrapped up in the first quarter of 2018, subject to regulatory approval.
“Desjardins is a partner with Canada’s credit unions and is proud to join forces with them and with CUMIS and its majority owner, The Co-operators, to create a major Canadian wealth management provider that will, in all aspects, offer credit union members and other clients a strong alternative to the banks and other wealth management companies,” said Desjardins Group President and CEO Guy Cormier.