Management and Organizational Studies 2275A/B Chapter Notes - Chapter 25: Fiduciary, Brokerage Firm, Payment Service Provider

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Relationship that a business has with its bank, including the financial services the bank provides and the agreements and duties involves in the relationship. The canadian financial services industry had four sectors; banks, trust companies, stock brokerages and insurance companies which was separately regulates and institutions in one sector were prohibited from conducting business beyond that sector. The internationalization of the financial services industry in the 1980s placed pressure on governments to deregulate and relax the strict separation of the four sectors. In 1987, canadian legislation allowed banks to go beyond traditional banking and participate in other sectors in their branches or through subsidiary firms. Banks have become financial marketplaces, offering services in cash management, payment services, investment advice and business financing. The key limit on banks" business is prohibition of selling or promoting insurance products in their branches = which banks responded by opening separate insurance branches and attempting to conduct insurance business online.