Scotiabank to Help Launch Indigenous-Controlled Investment Dealer

By Robb M. Stewart

One of Canada's biggest lenders, Bank of Nova Scotia, is working to launch what it said will be the country's first majority indigenous-owned investment dealer.

The bank said Friday it entered an agreement with two indigenous development companies and one First Nation group to seek regulatory approval to create and operate Cedar Leaf Capital in Canada.

The new investment dealer will be 70% owned in equal part by Nch'kayDevelopment Ltd. Partnership, Des Nedhe Financial and Chippewas of Rama First Nation. Scotiabank will own the remaining minority stake and initially control the company.

The partners said the goal is for the investment dealer to be wholly indigenous-owned, controlled and operated, but in the interim Ceder Leaf will leverage Scotiabank's infrastructure and core enterprise frameworks. Subject to further regulatory approval, Scotiabank said it plans to begin to reduce its controlling interest.

If approved, Cedar Leaf will offer institutional clients in each of Canada's provinces and territories financial advisory services, with a focus on acting as a placement agent or underwriter of Canadian fixed-income securities offerings, the bank said. It said the aim is for Cedar Leaf to foster greater indigenous participation in the capital markets, create commercial opportunities for indigenous communities, and also to partner with established market participants to help them meet reconciliation commitments to indigenous people.

The partners plan to appoint Clint Davis chief executive of Cedar Leaf. Davis, who has more than 20 years experience with financial institutions and indigenous organizations, is Inuk from Labrador in eastern Canada and a member of a community under the Labrador Inuit Land Claim Agreement.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

February 23, 2024 08:42 ET (13:42 GMT)

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