Personal Finance

Private Banker eligibility

  • Last Updated:
  • Oct 19th, 2020 8:45 pm
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[OP]
Sr. Member
Sep 14, 2012
641 posts
360 upvotes
Montreal, QC

Private Banker eligibility

What is the eligibility to have/get a private banker?

I've read that it is a minimum of $1,000,000.00 in investment assets. If so, is this $1,000,000 in a single institution or can it be in different institutions?

Are there any ongoing fees?
13 replies
Member
Jan 24, 2004
419 posts
21 upvotes
It's definitely that large amount in the one institution. You're putting so much money into there that they assign a specialized banker who can get you resources only people with lots of money will need. Special investments, tax advice, wealth management, estate planning, etc..

As for how much, I bet each bank has different minimums depending on the services they can offer..
Deal Fanatic
Jul 1, 2007
8424 posts
1457 upvotes
In order to be eligible, you have to have a sufficiently high opinion of yourself.
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
[OP]
Sr. Member
Sep 14, 2012
641 posts
360 upvotes
Montreal, QC
Thalo wrote: In order to be eligible, you have to have a sufficiently high opinion of yourself.
Not really. I just want to know what they can do for me if I'm eligible. If I'm not, that's fine as well.

They offer "everything" (estate planning, insurance needs, investing, financial planning, retirement planning, major purchases, etc.) so instead of a piece meal approach, one could get something all under one roof.
Deal Addict
Dec 4, 2011
1229 posts
589 upvotes
Montreal
One of the best wealth advisors at Scotia MacLeod in Montreal has a $5 mil minimum account size for all the services listed above to give you an idea.

And yes, you pay a flat percentage fee of your assets yearly. There are different levels for that depending on how involved you want to be with your portfolio for example.
Deal Addict
Sep 19, 2009
2036 posts
846 upvotes
Toronto
admiralackbar wrote: One of the best wealth advisors at Scotia MacLeod in Montreal has a $5 mil minimum account size for all the services listed above to give you an idea.

And yes, you pay a flat percentage fee of your assets yearly. There are different levels for that depending on how involved you want to be with your portfolio for example.
Two and Twenty is kind of an industry standard. $100k minimum fee per year for your guy.
Two and twenty (or "2 and 20") is a fee arrangement that is standard in the hedge fund industry and is also common in venture capital and private equity. Hedge fund management companies typically charge clients both a management and a performance fee. "Two" means 2% of assets under management (AUM), and refers to the annual management fee charged by the hedge fund for managing assets. "Twenty" refers to the standard performance or incentive fee of 20% of profits made by the fund above a certain predefined benchmark. While this lucrative fee arrangement has resulted in many hedge fund managers becoming extremely wealthy, in recent years the fee structure has come under fire from investors and politicians for varying reasons.
Member
Jan 24, 2004
419 posts
21 upvotes
andrew4321 wrote: Two and Twenty is kind of an industry standard. $100k minimum fee per year for your guy.
He's talking about private banking. Not Private equity or hedge funds..

An example of this would be, you pay fees to a private banker who gets you opportunities to invest in a hedge fund or private equity fund. Dunno if your private bank fees cover but 2/20 isn't what a private banker will charge cause their goal isn't just to maximize profit/returns.
Deal Addict
Dec 4, 2011
1229 posts
589 upvotes
Montreal
andrew4321 wrote: Two and Twenty is kind of an industry standard. $100k minimum fee per year for your guy.
No this guy works for McLeod and runs the portfolios for some of the wealthiest famillies in QC (has 6 billion AUM). You get estate planning, tax advice, insurance, investing yadda yadda, private banking office account, etc. Fees for a PartnershipPlus account (where you can also tell them what to buy, they manage the rest) is 0.6% which gets you all the above. They have different programs if you want them to drive the whole thing, higher percentage. Some services, such as tax advice, can only be an initial consult given the complexity of such requests.

All kinds of level for Private Banking as well. There are higher than this and lower. You still get crappy service on the retail banking side of things!
Sr. Member
User avatar
Dec 20, 2017
606 posts
722 upvotes
With BMO it's $1M+ investable assets or mortgage. $100 monthly fee waived for personal accounts, or $125 waived for business accounts. Unlimited account links, so whole family and multiple business accounts can be under one "lead plan".
[OP]
Sr. Member
Sep 14, 2012
641 posts
360 upvotes
Montreal, QC
Sent an email to two private bankers (one at TD Canada Trust and one at RBC) requesting information and I only received reply from one (from RBC).

TD sent me a generic email via their secure messaging system but the private banker that I emailed directly from TD Canada Trust didn't reply to me.
Thank you for reaching out to us. I can certainly appreciate your concerns and will be happy to provide you with further direction.

TD Waterhouse Private Bankers do more than serve you. They look after you, take a personal interest in your financial affairs and assist you in managing your finances, including your investments, banking and credit needs, and retirement and estate planning.

Your Private Banker will give you a high degree of personal attention in all of your dealings with us ? from day-to-day banking, to business and personal credit, to individually tailored wealth management advice and solutions.This will mean that you will have to move your assets to TD Bank Financial Group.

Based on a thorough understanding of your financial goals, preferences and circumstances, your Private Banker will recommend the appropriate specialists from TD Waterhouse Private Client Services and the entire TD Bank Financial Group, and coordinate their activities on your behalf.

Our team can develop and implement fully integrated financial solutions that address both your personal and business wealth considerations. In addition, your Private Banker can work with your own lawyers, accountants and other advisors when you wish.

As part of your relationship, you will be supported by a dedicated Private Banking team who will work with you to coordinate the various aspects of your wealth management affairs, as well as provide for your everyday banking and cash management needs.

If your complex financial needs require a a high level of service and a close banking relationship, please take a moment to locate a Private Banker here and arrange a meeting.

More information on Private Banking can be found here

If you have any other questions, please let us know and we will be happy to help.

We truly value your business and appreciate your continued loyalty!
Sr. Member
Apr 14, 2006
602 posts
357 upvotes
St Johns
lmcjipo wrote: What is the eligibility to have/get a private banker?

I've read that it is a minimum of $1,000,000.00 in investment assets. If so, is this $1,000,000 in a single institution or can it be in different institutions?

Are there any ongoing fees?
Same institution :-) they don’t really care about money you have elsewhere unless it’s for collateral
Sr. Member
Apr 14, 2006
602 posts
357 upvotes
St Johns
lmcjipo wrote: What is the eligibility to have/get a private banker?

I've read that it is a minimum of $1,000,000.00 in investment assets. If so, is this $1,000,000 in a single institution or can it be in different institutions?

Are there any ongoing fees?
I’m with TD PB, they won’t want you unless you have $1M+ *and* is an interesting customer (e.g let them manage your money, have multiple mortgages, trade with frequency on TDW, borrow huge $ on margin). Your reputation/LOB is important.

You can get exceptional remote service, same crappy retail, no special cards. Depending on your profile they will wave your $100/m fee. You won’t pay for anything, credit cards, accounts etc
Last edited by tradinghumble on Oct 20th, 2020 2:23 pm, edited 1 time in total.
Sr. Member
Oct 27, 2012
839 posts
811 upvotes
Toronto
I have Private Banking with Scotia. Typical minimum is $1M in investable assets with them, but that's not set in stone. It can depend a lot on your "potential" for them and the business you have with them already. I don't pay a dime for multiple chequing accounts, multiple premium credit cards, safe deposit box, etc.

Also, certain employers/firms will have relationships which certain banks which may allow you to access Private Banking services without the minimum.

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