Raymond James Trust proposes amalgamation with Solus

Summary#

Raymond James Trust (Québec) Ltd. filed on April 25, 2024 with the Office of the Superintendent of Financial Institutions (OSFI) to become a federally incorporated trust company under the Trust and Loan Companies Act (Canada) and to merge with its parent, Solus Trust Company, by way of letters patent of continuance and amalgamation. People may send written objections to OSFI up to August 20, 2024. The notice does not mean the approvals will be granted.

What it does#

• Asks the federal government to issue letters patent of continuance so Raymond James Trust (Québec) Ltd. (now regulated under Quebec law) can continue as a federally incorporated, non-deposit taking trust company under the Trust and Loan Companies Act (Canada).
• Requests letters patent of amalgamation to combine Solus Trust Company (already federally incorporated) and Raymond James Trust (Québec) Ltd. into one company that will keep the name Solus Trust Company in English and Compagnie Trust Solus in French.
• Says the combined company would continue to be a non-deposit taking trust company offering estate and trust services across Canada, with its head office remaining in Toronto, Ontario.
• Notes that Raymond James Trust (Québec) Ltd. will complete its continuance application only after it gets approval from Quebec’s Minister of Finance under provincial law.
• Explains that the federal decision is not automatic; issuance of the letters patent depends on the federal review and the Minister of Finance’s discretion.

Who's affected#

• Clients of Raymond James Trust (Québec) Ltd. and Solus Trust Company, especially those using their estate and trust services.
• The companies themselves and their employees, given the change in federal/provincial regulation and the planned merger.
• Regulators involved, notably OSFI and the federal Minister of Finance.
• The public can object; any person or group who has concerns can submit a written objection to OSFI by August 20, 2024.

Why it matters#

• Moving a Quebec trust company to federal regulation and merging it with its parent could change which rules apply to the business and who oversees it. That can affect how services are offered and supervised.
• Customers may want to know whether their contracts, protections, or where complaints are handled will change if the continuance and amalgamation go ahead.
• The notice sets a clear window for public objections (until August 20, 2024), so stakeholders who are concerned have a chance to speak up before a final decision is made.