300767376 1293245244747892 8440169092567672054 n

Nch’ḵay̓ joins Scotiabank and Indigenous partners in establishing the first majority Indigenous-owned investment dealer in Canada

February 23, 2024 – Nch’ḵay̓ Development Limited Partnership (Nch’ḵay̓), Des Nedhe Financial LP, Chippewas of Rama First Nation, and Scotiabank have announced they are seeking regulatory approval to launch Cedar Leaf Capital Inc. (Cedar Leaf Capital), the first majority Indigenous-owned investment dealer in Canada. Nch’ḵay̓ is proud to be a partner in this important business endeavour, which is aligned with our mission of pursuing successful business opportunities that contribute to the long-term wealth and prosperity of Squamish Nation.

Cedar Leaf Capital will lead the way for Indigenous participation in Canada’s capital markets by aiming to deliver best-in-class capital markets advice and services to its clients while generating profitable and stable growth for its shareholders. It will also actively attract and develop Indigenous talent and create pathways for experienced professionals and future generations of Indigenous people considering a career in capital markets and finance.

Some may wonder what this means and why it’s important, so we’ve put together a collection of questions and answers to help explain. 

Why is this so significant?

  • Some of the largest corporations in Canada, and most provincial/territorial governments and agencies, have an expressed desire to work with Indigenous-owned businesses, which ultimately supports the Indigenous economy.
  • Subject to regulatory approval, it is intended that Cedar Leaf Capital will immediately engage with various corporate and government issuers seeking to access the Canadian capital markets.  
  • At formation, 70% of the equity of Cedar Leaf Capital will be owned by its three Indigenous shareholders. It is intended that Cedar Leaf Capital will become wholly Indigenous owned, controlled, and operated in the future. 
  • With necessary approvals, this Indigenous-owned and led investment dealer will foster greater Indigenous participation in the capital markets, create commercial opportunities, expand connections for Indigenous communities, and partner with established market participants to assist them in meeting their reconciliation commitments.

What is an investment dealer?

  • An investment dealer carries out investment orders by buying and selling stocks, bonds, treasury bills, mutual funds and other securities for individual investors, pension fund managers or companies such as banks, trust companies and insurance firms. 
  • Subject to regulatory approval, Cedar Leaf Capital will provide debt capital markets advice and services to Canadian government and corporate clients.

What is Nch’ḵay̓’s role, and what did Nch’ḵay̓ pay for its ownership?

  • Nch’ḵay̓ will participate in the governance of the investment dealer by having a seat on its board of directors alongside representatives from Scotiabank and the other Indigenous shareholders.  The board’s role is to ensure proper governance and oversight at Cedar Leaf Capital.  
  • Scotiabank approached and selected the three Indigenous shareholders based on their strong reputations, governance, and existing relationships as Scotiabank banking clients.
  • Nch’ḵay̓ did not have to put in funds for Nch’ḵay̓’s share in the investment dealer, as Scotiabank recognizes the importance of the Indigenous share ownership.  As Nch’ḵay̓ is a shareholder in Cedar Leaf Capital and is not involved in its management activities, there is no direct business risk to the Squamish Nation or Nch’ḵay̓.
  • Squamish Nation Council and the Nch’ḵay̓ Board of Directors approved Nch’ḵay̓’s participation in this opportunity.  

What does the ownership look like? 

  • At formation, Cedar Leaf Capital will be 70% owned by the Indigenous groups. 
  • Scotiabank intends to establish the initial operations of Cedar Leaf Capital and eventually divest its ownership interest to Indigenous owners, subject to various stand-alone viability conditions and regulatory approval. 

Where will the head office be?

  • Cedar Leaf Capital’s head office will be based in Toronto, the traditional territory of many nations, including the Mississaugas of the Credit, the Anishnabeg, the Chippewa, the Haudenosaunee and the Wendat peoples and is now home to many diverse First Nations, Inuit, and Métis peoples. 
  • Toronto is covered by Treaty 13, signed with the Mississaugas of the Credit, and the Williams Treaties, signed with multiple Mississaugas and Chippewa bands. 

Who is the CEO of Cedar Leaf Capital?

  • Cedar Leaf Capital will be led by its Chief Executive Officer, Clint Davis, who will be registered as the most senior officer of the company under Canadian securities regulation, responsible for the conduct of the firm and the supervision of its employees.  
  • The CEO will oversee a team of highly experienced industry professionals when the company commences operations, the majority of whom will be registered and supervised in some capacity by relevant securities regulators.  

When will it be open for business?

  • Scotiabank has applied for regulatory approvals required to establish Cedar Leaf Capital Inc. 

We look forward to providing Squamish Nation members with more information as it becomes available.