Concentrated Strategies and Leveraged/Inverse ETFs
As discussed on our monthly webcast last Thursday, attached are two (2) new disclosures that certain clients may need to complete based on their trading patterns. These forms will be used with a very small number of IPI clients that either hold concentrated positions or hold leveraged/inverse ETFs in their RBC account. Compliance will let you know if either disclosure is needed. However, if you know that your client will maintain a concentrated position in a security, then please feel free to obtain the disclosure in advance and forward to Compliance.
For the Concentration form, it will be required if a client holds a position that is 20% or more of the total investment position(s) in an account. This disclosure form is to protect client's from themselves in documenting the potential risks of holding concentracted positions and to also understand possible exit strategies from holding the investment. This form will be required from very few clients as a majority of IPI clients are well diversified in their investments.
With the Leveraged/Inverse ETF disclosure, like the Concentration form, it will be required of a very small number of IPI clients that hold leveraged and/or inversed ETFs. If you know that your client will purchase leveraged or inversed ETFs, then please feel free to obtain the disclosure in advance and forward to Compliance.
If you have any questions, please let us know. Thanks, Renee
Concentration Strategies Disclosure |
Leveraged and Inverse ETF Disclosure |