What is an IC/PM?

Since 2000, Shaunessy has been licensed as an IC/PM by the Securities Commissions of Alberta, Ontario and British Columbia as well as the U.S. Securities and Exchange Commission (SEC) and is therefore permitted to operate as an IC/PM in these jurisdictions.

IC/PM is an acronym for Investment Counselor/ Portfolio Manager, a specific designation established by securities regulators in North America to license and regulate the conduct of such firms and individuals. The objective is to protect investors.

In a nutshell, an IC/PM is an individual or a firm deemed qualified to manage portfolios and provide investment advice to clients and is defined under Section 99 of the Ontario Securities Act, and is generally defined in similar terms under other securities legislation, as follows:

Investment Counsel - Persons or companies that engage in or hold themselves out as engaging in the business of advising others as to the investing in or the buying and selling of specific securities or that are primarily engaged in giving continuous advice as to the investment of funds on the basis of the particular objectives of each client.

Portfolio Manager - Persons or companies that are registered for the purpose of managing the investment portfolio of clients through discretionary authority granted by one or more clients.

IC/PMs are licensed and supervised directly by securities regulators (rather than by a self-regulatory industry organization such as the IDA, the Investment Dealers Association) and firms may secure this designation upon meeting strict requirements with regard to proficiency, education, investment experience, business structure, insurance coverage, working capital reserves and subsequently must provide, on an annual basis audited financial statements and may also be audited directly for compliance by a securities commission. Specific stan-dards of fairness in dealing with clients, regarding record keeping and many other matters exist to govern the conduct of an IC/PM.

IC/PMs are also deemed qualified to manage portfolios on a discretionary basis --- that is, to manage a portfolio within parameters established by the terms of a previously agreed to Investment Management Agreement (IMA) without a client approving individual buy and sell orders or otherwise being involved in day-to-day decisions regarding portfolio structure, asset mix or other transactions.