I Got a $50 Gift Card Offer Just for Talking to a Bank. So I Asked Our CCO About It.
A few days ago, I received a referral offer from one of Canada’s big banks. The message opened with a slightly robotic “Dear MRS KATHRYN TOOPE,” and then offered me a $50 gift card for booking a meeting with a bank advisor, plus another $50 if I referred a friend who also took a meeting.
As someone who works in the regulated world of investment advice, I had questions. Mostly: why are they allowed to pay for referrals? Something that’s a huge no-no in my world.
So, I forwarded the message to our Chief Compliance Officer, who replied:
“That’s because banks operate under the Bank Act. We operate under securities laws. They can offer gift cards for ‘having a meeting.’ We can’t because our meetings would involve a registered Portfolio Manager and financial advice, and that’s regulated. The gift card offer is for a marketing chat, not advice.”
In other words, this wasn’t about the bank breaking rules – it’s about how different the rules are depending on what kind of discussion you’re having, and with whom.
What’s the Real Difference?
When a Portfolio Manager, like the team at Verecan Capital Management Inc. meets with someone, it’s not a “sales chat”. It’s a fiduciary interaction – meaning we’re legally and ethically obligated to act in your best interest. That’s why securities regulations are very clear about referral arrangements: they must be documented, disclosed, and compliant.
The offer I received was for a meeting, not investment advice. It might be a good way to meet new people – but for us, referral compensation tied to financial advice is a non-starter unless all regulatory conditions are met. And even though we’d love to meet your family and friends if you think we can help them, we’ve chosen not to go down the path of providing an incentive for that.
Why? Because we want any referral we receive to be based on trust and experience, not free tickets or gift cards. You won’t see us handing out coffee cards or cash for client introductions – and we’re okay with that.
What We Do Instead
We don’t offer a referral program. We offer something more valuable:
- Transparent advice from licensed professionals.
- A business model built around our clients’ goals – not ours.
- No commissions. No quotas. No fine print that puts us ahead of you.
We believe people refer us because they trust the way we work, and because they feel better about the advice they’re getting. And, ultimately, because feeling better about where you’re at and where you’re headed, financially, lets you relax and enjoy your life in the present.
So, if you’re wondering what makes us different, here’s our version of a referral incentive:
We promise to treat the people you send our way the same way we treat you – with integrity, transparency, and zero sales pressure.
P.S. I still haven’t claimed the gift card. But I’m hanging onto the email. It’s a great reminder of what we’ve chosen not to do.
We love when clients refer their friends and family to us — it’s one of the biggest compliments we can receive. But you may have noticed something missing:
We don’t offer gift cards, perks, or referral bonuses.
Why We Don’t Have a Referral Program (And That’s a Good Thing)
Here’s why:
- Advice First, Always
We’re licensed to provide discretionary portfolio management — which means we have to follow a strict set of rules that put your interests first. Those rules are designed to protect you, not restrict us.
- No Gimmicks
We don’t pay for introductions. We don’t run contests. And we don’t offer rewards for referrals because that could blur the line between trust and transaction.
What We Do Offer
- Straightforward conversations
- Real, conflict-free advice
- Respect for your trust, and for anyone you send our way
We’re proud that people refer us because they believe in what we do – not because there’s something in it for them.
