Investment Protection Principles

Global Equity Research Scotiabank, Global Banking and Markets Research Analyst Standards and Disclosure Policy Our mission in Global Equity Research is to provide our clients and investors with strong leadership and guidance in their investment process. Therefore, it is vital that our clients and investors have confidence and trust in the research that we provide. To achieve this, we instil and support a philosophy of independence, objectivity, and credibility. The reputation of our business depends on it. High analyst standards together with appropriate compliance policies, disclosure, and transparency are crucial to the integrity of our business practices. We have implemented responsible policies and procedures to address potential conflicts of interest and ensure responsible research. One of Scotiabank, Global Banking & Markets core values is "Integrity: We act with integrity and professionalism in everything we do." We strive to live up to this core value. Scotiabank, Global Banking and Markets Research Analysts must adhere to a strict and comprehensive standards and disclosure policy. Outlined below are some of the key aspects of the policy.

Scotia Howard Weil, a division of Scotia Capital (USA) Inc. has adopted principles to eliminate potential conflicts of interest that may arise out of a relationship between Investment Banking and Research Departments. In adopting these principles, Scotia Howard Weil affirmatively states:

  • Research Analysts shall not receive any compensation, incentive or bonus, for or based on any specific investment banking services transactions;

  • Compensation decisions regarding Analysts shall be made without input from Investment Banking personnel and are reviewed annually by a committee that reports to the Firm's Board of Directors;

  • All research reports and other communications, which are generally distributed or made available to customers or the public must be approved in advance by a Supervisory Analyst;

  • Upon termination of research coverage of a subject company, notice of this termination will be made by issuance of a final research report on the subject company using the means of dissemination equivalent to the means it ordinarily uses to provide customers with its research reports on the subject company. The report will be comparable in scope and detail to prior research reports and will include a final recommendation or rating, unless it is impracticable to produce a comparable report. In such instances where it is impracticable for Scotia Howard Weil to provide a final recommendation or rating, at a minimum, Scotia Howard Weil will provide the rationale for the decision to terminate coverage;

  • Among the disclosures required by Scotia Howard Weil in its research reports is whether Scotia Capital (USA) Inc. or any of its affiliates has managed or co-managed a public offering of securities for the subject company in the past twelve (12) months, and whether Scotia Capital (USA) Inc. or any of its affiliates has received compensation for investment banking services from the subject company in the past twelve (12) months or expects to receive or intends to seek compensation for investment banking services from the subject company in the next three (3) months.

These procedures are monitored by Supervisory Analysts and the Compliance Department to ensure compliance with the principles.

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