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News Releases

 

RBC acquires full ownership of CDI

TORONTO, March 2, 2009 — Royal Bank of Canada (RY on TSX and NYSE) today announced that RBC Capital Markets has acquired full ownership of Commission Direct Inc. (CDI), one of Canada's largest independent providers of independent commission-compensated investment services (IC-CIS) for Canadian institutional investors. Prior to this transaction, RBC had a 50 per cent ownership interest in CDI. Terms of the transaction were not disclosed.

IC-CIS brokerage companies such as CDI facilitate the payment of qualified independent research and brokerage obligations, commission sharing arrangements (CSA), commission recapture, transition restructures, and discount trading. The transaction gives CDI the ability to continue to offer professional investors unbiased access to qualified investment decision-making and trading services and plan administrators the ability to save money.

"CDI has a long track record of independent, high-quality agency execution, serving the growing needs of Canadian institutional clients," said John Reilly, head of Canadian Equity Trading, RBC Capital Markets. "We look forward to CDI continuing to develop and distribute innovative new products and services for the Canadian institutional marketplace."

"This transaction will allow us to provide an enhanced range of services to our client investors, backed by the financial strength and stability of RBC" said Wayne McAlpine, chief executive officer, CDI. "During our 17-year partnership, RBC has supported and believed in our independent approach, and our commitment to the highest standards of trade execution, administrative excellence and diligent compliance with soft dollar practices."

About CDI
CDI was founded in 1992 to facilitate the payment of IC-CIS needs of Canadian institutional investors as well as to assist independent research providers targeting professional money managers in Canada. The company is a member of the Investment Industry Regulatory Organization of Canada, the Toronto Stock Exchange, TSX Venture Exchange and the Canadian Investor Protection Fund.

About RBC Capital Markets
RBC Capital Markets is the corporate and investment banking arm of RBC and is active globally in debt and equity origination, merger and acquisitions activity, sales and trading, foreign exchange, infrastructure finance, structured products, metals and mining, and energy. Its North American platform includes a significant U.S. middle market investment banking franchise and leading equity, underwriting, sales, trading and research businesses. Bloomberg ranks the firm as the 12th largest investment bank globally.

About RBC
Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate under the master brand name RBC. We are Canada's largest bank as measured by assets and market capitalization, one of North America's leading diversified financial services companies and among the largest banks in the world, as measured by market capitalization. We provide personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis. We employ more than 80,000 full- and part-time employees who serve more than 18 million personal, business, public sector and institutional clients through offices in Canada, the U.S. and 52 other countries. For more information, please visit www.rbc.com.

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For more information, please contact:
Stephanie Lu, RBC, Head of Media Relations
416-974-5506, stephanie.lu@rbc.com

Investor Relations
Josie Merenda, RBC, Director of Investor Relations
416-955-7809, josie.merenda@rbc.com

For general investor relations information please visit: www.rbc.com/investorrelations.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release may be deemed to be forward-looking statements under certain securities laws, including the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities legislation and Royal Bank of Canada (RBC) intends that such forward-looking statements be subject to the safe-harbour created thereby. These forward-looking statements include, but are not limited to statements with respect to the acquisition of CDI by RBC Capital Markets. Forward-looking statements are typically identified by words such as "believe", "expect", "forecast", "anticipate", "intend", "estimate", "plan" and "project" and similar expressions of future or conditional verbs such as "will", "may", "should", "could", or "would".

By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations and other forward-looking information, including statements about the acquisition of (CDI) by RBC Capital Markets will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause our actual results to differ materially from the expectations expressed in such forward-looking statements. These factors include, but are not limited to the possibility that that the anticipated benefits of the transaction are not realized as a result of such things as the strength of the economy and competitive factors in the areas where CDI does business; the impact of changes in the laws and regulations regulating financial services and enforcement thereof (including banking, insurance and securities); judicial judgments and legal proceedings; RBC Capital Markets ability to integrate CDI with RBC Capital Markets successfully; reputational risks, and other factors that may affect future results of RBC and CDI, including timely development and introduction of new products and services, changes in tax laws, and technological and regulatory changes. We caution that the foregoing list of important factors is not exhaustive. Additional information about these and other factors can be found in the Royal Bank of Canada 2008 Annual Report.

Except as required by law, RBC Capital Markets, RBC and CDI assume no obligation to update the forward-looking statements contained in this press release.


 



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03/02/2009 08:54:24