Doing Business with HUB Capital
 
We have taken the most commonly asked questions and laid them out for you in a Q&A format. If you have any questions not answered here, click on the “Contact us” section for the office nearest you.
 
Q. How do I become registered with HUB Capital Inc.?
 
A. To become registered as a HUB Capital Inc. mutual fund representative (Approved Person), a specific application process must be followed. This process begins with a discussion with your regional HUB Investment Sales Specialist, and ends with your registration upon successful completion of the process. The application process is designed with specific intent for both parties (HUB Capital Inc. and the applicant) to gain insight and understanding of each other’s respective business practices, obligations and expectations, as well as the requirements of all parties under the jurisdiction of the particular regulators.
 
Q. What are the criteria that HUB Capital Inc. has for accepting a new advisor?
 
A. HUB Capital Inc. seeks licensed mutual fund advisors who have assets of at least $3.5 Million under management. In addition, a minimum of at least $1M of new deposit is required in a 12 month period. Furthermore, the application process conducts a review to ensure that the applicant meets the compliance, financial, and professional expectations of the dealership. The regional HUB Investment Sales Specialist can shed more light on additional details. HUB typically takes an overview of an applicant, and other factors are considered too; for example: the applicant’s relationship and experience with HUB Financial Inc. on the insurance side of the business.
 
Q. Do I require a contract with each mutual fund company?
 
A. No. Your contract with your dealer (HUB Capital Inc.) enables you to do business with a wide variety of fund companies that are pre-approved by HUB Capital Inc. Many of the most recognized and respected mutual fund companies in Canada are contracted with HUB Capital Inc. and their products are available for sale to clients. HUB Capital Inc. maintains an “Approved Product List” which contains all the products and funds available for sale by a HUB Capital Inc. representative.
 
Q. Will I be able to bring all my clients and all the products sold with my current dealership?
 
A. Probably. There may however be costs or penalties imposed by your previous dealership when you transfer your block out. Be sure to consider your previous dealership’s requirements and contractual terms before making the move. HUB Capital Inc. holds dealer agreements with many of the top Mutual Fund Companies and Intermediaries in Canada, and can assist you in servicing your clients that hold existing funds obtained through a previous dealership. In many cases, transferring clients to a new dealer is an easy process, requiring only a Know-Your-Client Application form and a Dealer/Rep Change Form. However, in the event that one of your clients holds a fund that is currently not on our Approved Product List, the account would not be permitted to be transferred to HUB without a dealer agreement in place.
 
Q. Do I own my clients when registered as a HUB Capital Inc. representative?
 
A. Yes. HUB firmly embraces advisor independence and respects the relationship between advisor and client. Having said that, under standard industry guidelines, the regulators view all clients as those of the dealership under which the advisor conducts business. So while HUB recognizes the relationship between advisor and client, the regulators set their policies and procedures on the basis of the client being that of HUB Capital Inc. Naturally, HUB Capital Inc. will always adhere to the prescribed regulatory requirements.
 
Q. Where do I send my investment documentation?
 
A. KYC applications and trade tickets should be sent to your local HUB office to the attention of “Investment Processing”. Addresses, phone numbers, and fax numbers are located under the “Contact Us” section of our website.
 
Q. Who do I speak with regarding follow-ups on my investment business?
 
A. Each region has an Investment Products Team. This team is your number one administrative contact. They will field all questions pertaining to the administration of your business.
 
Q. How is Trading Done?
 
A. HUB Capital Inc. representatives are responsible for processing their trades through Remote Order Entry (ROE) by entering them on RepVision to be forwarded to FundSERV for processing.
 
Q. What is Remote Order Entry (ROE)?
 
A. ROE allows the HUB Capital Inc. representative the ability to control much of their own functionality rather than relying on a third party. It also serves to provide them with more independence, flexibility, and control of their data input quality and accuracy.
 
Q. Who do I call if I need help with investment product questions?
 
A. Your primary contact is your regional HUB Investment Sales Specialist, however you may contact your regional Compliance Officer; contact information is located under the “Contact Us” section of our website.
 
Q. How does HUB Capital Inc. determine my payout level?
 
A. Your commission rate is based upon your Assets Under Administration (AUA). HUB Capital Inc. uses a grid system which increases as the block of assets increases. This level is reviewed annually and can be adjusted either way on the grid depending on how the assets have grown or declined. Other factors can be considered such as your new sales volumes and your relationship and production with HUB Financial Inc. (on the life side of the business). Your HUB Investment Sales Specialist will provide more information in this regard.
 
Q. How do I get paid for the business I submit through HUB?
 
A. Commission is paid out on a weekly basis, based on commission received in the previous week. HUB offers Electronic Funds Transfer (EFT) for commission payment and does commission runs every Friday.
 
Q. What are the costs involved in doing business with HUB Capital Inc.?
 
A. Grid: HUB Capital Inc. pays commissions on a grid system whereby a level is set (based upon assets under management) that determines the net commission payout to the advisor for commissions. The difference between the gross commission generated and the net commission received by the advisor is the cost to the advisor, or HUB Capital Inc.’s revenue.
Technology Fee: There is also a monthly technology fee charged to the advisor to support the cost of systems, processes, and the infrastructure that HUB Capital Inc. provides. The regional HUB Investment Sales Specialist can provide further detail on the specifics.
Statement Fee: HUB Capital Inc. is required by regulation to distribute quarterly statements to clients. A $2.00 fee for each paper statement delivered is charged to the advisor. There is no cost if your clients sign-up for online access and receives their statements by way of e-delivery. Lastly, there are certain other “industry charges” that are not those of HUB Capital Inc., but are those of the regulators and other industry bodies who require HUB Capital Inc. to administer and remit the fees to the respective regulator or body. An example of this would be MFDA fees and annual registration fees.
 
Q. How are fund units held?
 
A. HUB Capital Inc. does not act as a nominee, all clients at HUB Capital Inc. hold their mutual fund units under their own name with the fund companies. HUB Capital Inc. is therefore an “in-client name” dealership as opposed to a “nominee” dealership.
  
Q. How do I get more information about HUB Capital Inc. and the products and services provided?
 
A. Visit us at www.hubcapital.ca or contact your local HUB office today!