Connor, Clark & Lunn Financial Group (CC&LFG) is pleased to announce that Jean-Philippe Lemay is joining its leadership team as a Managing Director, effective January 6, 2025.

Jean-Philippe’s responsibilities will include oversight of its global institutional distribution and marketing teams, as well as providing a broad leadership presence for CC&LFG in Quebec.

Prior to joining CC&LFG, Jean-Philippe spent 13 years with Fiera Capital, where he built its Liability Driven Investment Solution business before rising to the position of Chief Executive Officer. Jean-Philippe’s credentials include a BSc in Actuarial Sciences from Université Laval and an MSc in Financial Mathematics from Stanford University. He is also a Fellow of the Society of Actuaries (FSA) and a Fellow of the Canadian Institute of Actuaries (FCIA).

“We are thrilled to welcome Jean-Philippe to our firm,” said Warren Stoddart, CEO of CC&LFG. “He is an accomplished individual with deep experience and proven leadership skills who will be an invaluable addition to our leadership team. An individual of his caliber located in our Montreal office is an important step in the further development of our presence in Quebec in the years ahead.”

“I am honoured to join CC&LFG and look forward to helping shape the firm’s future development,” said Jean-Philippe Lemay. “CC&LFG is undeniably a success story in Canada’s financial services industry, having quietly grown to become one of the country’s largest independent asset management firms. Its affiliated businesses, including Global Alpha Capital Management, Baker Gilmore & Associates and CC&L Private Capital, have established a significant presence among institutional and high-net-worth clients in the province. I look forward to collaborating with the talented team at CC&LFG to build on this success and drive continued growth both locally and globally.”

CC&LFG and its affiliates manage over $135 billion in assets across a range of traditional and alternative investment strategies from offices in Canada, the US, the UK and India.

For more information, please contact:

Stephanie Wei
Senior Manager
Connor, Clark & Lunn Financial Group
416-823-2954
[email protected]

Our annual Responsible Investment (RI) Report outlines our Affiliates’ ongoing commitment to sustainable investment practices and efforts to have a positive impact on people and planet through how we manage our own business.

2023 key achievements and initiatives

• Active owners: Encourage companies to effectively manage material ESG risks and opportunities through our stewardship and engagement efforts.
• Industry collaboration: Active participation in initiatives like the Canadian Coalition for Good Governance and Climate Engagement Canada that support effective capital markets operations and promote a unified industry voice.
• Corporate Social Responsibility commitment: Strong commitment to societal impact through CSR policies prioritizing work environment, employee health and wellness and environmental stewardship.
• Affiliate achievements: Notable successes include Crestpoint’s Zero Carbon certification of Arthur Erickson Place, CC&L Infrastructure’s Energy Transition Strategy and our Affiliates’ continued efforts to enhance their approach to incorporating ESG risks and opportunities in the investment process.

For further details on how our Affiliates are implementing their responsible investing approach, please visit their websites.

In May 2024, US and Canadian markets will be moving to T+1 settlement cycle. As we transition to the shorter settlement cycle, we believe it is important for you to be aware of this upcoming change and the preparation CC&L has been making, alongside our industry partners.

Below are answers to common questions to help you understand the upcoming T+1 settlement transition, as well as the work we are doing to prepare for it.

What is T+1 settlement?

T+1 settlement refers to the process where securities transactions are completed one business day after a trade has been executed. Currently, in Canada, the US and Mexico, the standard is to settle these transactions two days after the trade (i.e., T+2).

Which markets are moving to T+1?

The US and Canadian markets are planning to switch to T+1 settlement over the Memorial Day weekend between May 25 and May 28, 2024. Mexico wants to make this change to align with the US, but is waiting for regulatory approval.

Europe and the UK are also looking to compress their securities settlement cycle. The Association for Financial Markets in Europe (AFME) established a T+1 industry taskforce in March 2023 and the UK formed a similar group called the Accelerated Settlement Taskforce in December 2022. However, neither Europe nor the UK has set a date for when they might move to T+1 settlement.

What is the live date for T+1 settlement in Canada and the US?

Canada settlement cycle T+1 transition timeline

 

US settlement cycle T+1 transition timeline

 

What are the benefits of T+1 settlement?

Moving to T+1 settlement has several advantages. According to the Securities Exchange Commission (SEC), it makes trading safer by shortening the time between making and settling a trade. This also helps protect investors and makes the trading process more efficient. A faster settlement time can lower credit and counterparty risk and collateral costs and increase market liquidity. It can also help reduce broker-dealer margin and collateral requirements.

What makes the move to T+1 distinct from previous settlement date compressions?

The shift to T+1 settlement is different and more complicated than past changes, such as the move from T+3 to T+2 in 2017, with a more aggressive timeline involving more complex technology and process updates. The previous change was a joint decision by the industry and regulators to make clearing and settlement safer and better coordinate with EU and UK trade lifecycle timelines. The move to T+1 is being driven by specific events and is mandated by the SEC, making it more challenging for market participants.

What are the key challenges in switching to T+1 settlement?

Moving to T+1 settlement brings up several challenges. First, while it reduces risk for those selling securities, it increases the work and potential for error on the buy side because of the compressed settlement timeline. This change means firms need to closely examine how they operate to handle the quicker pace.

Key issues for our firm include:

• Different settlement times in global markets, which can make coordinating trades more complicated.
• The timing of currency exchanges that need to happen after securities trades, which can affect when and how trades are settled.
• Managing the cashflow cycle for pooled funds and segregated clients, which influences when trades can happen and requires changes in how investment teams work.

These challenges means firms must plan carefully to continue trading without issue under the new, quicker settlement timeline.

Which securities will the reduced settlement cycle affect?

The Canadian Capital Markets Association (CCMA) has compiled a list of securities scheduled to transition from the current T+2 settlement cycle to T+1 cycle in 2024. You can access the list at the CCMA’s website at: https://ccma-acmc.ca/en/t1-resources/canadian-t1-asset-list-liste-dactifs-canadiens-t1/.

The Depository Trust & Clearing Corporation (DTCC) also offers information on settlement cycles and related changes on its website at dtcc.com.

Will there be penalties for settling bonds and trades late?

No new penalties will be introduced; however, if registered dealers and advisers fail to meet the trade matching target requirements, they could face consequences. The Bank of Canada is considering charging a fee for any government bond trades that settle outside the prescribed timeframe. This fee would only be introduced after the transition to T+1 is complete, and the impact of the fee is properly assessed.

How is CC&L preparing for T+1 settlement?

In spring 2023, CC&L formed a project team to address the shift to T+1 settlement. This team is divided into four main workstreams focused on identifying and resolving issues and making changes in how trades are managed, covering everything from legal requirements to how trades are funded and settled.

It is also imperative that our peers and industry stakeholders are ready for this change. CC&L has started talking to brokers and custodians to understand their plans for T+1 and to determine what CC&L needs to maintain best execution.

Additionally, CC&L has consulted with technology providers to explore tools that could help with a shorter settlement period.

What are CC&L’s next steps?

As May 2024 approaches, CC&L will continue communicating with industry partners and clients, educating them about the change and working on necessary adjustments to meet the new standard.

Any updates to how CC&L handles transactions will be shared with clients closer to the start date.

If your question wasn’t answered above, please contact us at [email protected].