Online brokerage Questrade Financial Group Inc. is eyeing a banking licence, according to a notice in the federal government’s newspaper.
Toronto-based Questrade intends to file an application to the federal government for a legal instrument, known as letters patent, that would incorporate “Quest Bank,” the Nov. 16 Canada Gazette notice states.
The company also filed a trademark application for Quest Bank in October, according to a government registry, which indicated the lender could provide a wide range of basic banking services, as well as those related to investment banking, venture capital investment and insurance. The application suggested Quest Bank could provide a credit-card loyalty program as well.
Questrade launched in 1999 and now has more than $9 billion in assets. The company offers self-directed investing and a robo-advisor. It is also known, among other things, for a series of television advertisements in which investors take issue with the level of fees they are paying.
Quest Bank would be headquartered in Toronto, the notice in the Canada Gazette said, just east of Mississauga-based Community Trust Co., a federally regulated trust company that takes deposits, makes loans and is owned by Questrade.
Questrade’s banking application will now be reviewed by the Office of the Superintendent of Financial Institutions, after which the regulator would make a recommendation to the federal finance minister. If the minister decides to issue the letters patent, Questrade would still be subject to further review before OSFI decides whether to grant Quest Bank an order to commence and carry on business.
“The publication of this notice should not be construed as evidence that letters patent will be issued to incorporate the bank,” the Canada Gazette stated. “The granting of the letters patent will be dependent upon the normal Bank Act application review process and the discretion of the Minister of Finance.”
Questrade did not immediately respond to a request for comment.
Financial Post
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