Conflicts of interest

In 2021, the Canadian Securities Administrators (CSA) implemented client-focused reforms that require dealers and mutual fund representatives to better align their interests with those of their clients. These reforms include a major change concerning the management of conflicts of interest and ensure clients understand their relationship with their dealer and representatives.

What is a conflict of interest?

A conflict of interest exists when two or more parties are involved in a relationship and their interests, aims or goals are not aligned. A conflict of interest arises when the interests of different persons, for example those of a client and those of Desjardins Financial Security Investment Inc. (the ”dealer”) or one of its representatives, are incompatible or divergent.

A material conflict of interest is one where the conflict may be reasonably expected to influence either of the following, or both:

  • The decisions of the client in the relationship; or
  • The recommendations or decisions of the representative in the relationship.

Dealers and representatives must disclose to clients any material conflicts of interest that may exist in the relationship between the dealer and/or representatives and their clients. Furthermore, material conflicts of interest must be addressed in the client's best interest.

The following summary contains information regarding certain material conflicts of interest, the nature and extent of the conflicts, their potential impacts and explains how they are mitigated.

Information on conflicts of interest

Desjardins Insurance refers to Certas Home and Auto Insurance Company, underwriter of automobile and property insurance or Desjardins Financial Security Life Assurance Company, underwriter of life insurance and living benefits products.