Richardson GMP is "more than comfortable" with its decision to hire two Montreal brokers who were recently let go by Desjardins Group, and who have the potential to dramatically increase the size of Richardson GMP's business.
The pair, Marc Dalpé and Jean-Marc Milette, were among nine brokers fired by Desjardins for what the firm said at the time were undisclosed offshore investments that contravened policies at Desjardins as well as those of the industry’s self-regulatory association. (The full story is here.)
The issue was a "misunderstanding between them and their employer based on disclosure policy," Richardson GMP chief executive officer Andrew Marsh said Thursday. "They regret this misunderstanding and have fully cooperated with Richardson GMP and the regulators to immediately resolve the matter."
Mr. Marsh said Richardson GMP is "more than comfortable inviting this team to join us based on their reputation, client service and portfolio management record."
Amid a war for talent in the Canadian brokerage industry, brokers rarely become free agents, especially ones with a large book.
The new Richardson GMP brokers have nearly 2,000 clients and about $1-billion in assets under management. If they can bring many of those to Richardson GMP, it will be a huge boost in assets for the firm, which as of last quarter had about $13-billion in total assets under administration.
Mr. Marsh said the situation at Desjardins stemmed from four accounts in Nassau, the Bahamas, with combined assets of $900,000.
"Not one of their clients have been prejudiced or have filed a complaint against the team," he said.
Richardson GMP is a venture of the Winnipeg-based Richardson family and GMP Capital .