Nervous investors shunning risky stocks continue to make it difficult for publicly traded venture companies to raise capital. But boutique investment brokers in B.C. and across the country fear growing regulatory burdens could devastate an already struggling industry.
According to Investment Industry Association of Canada (IIAC) data, retail investment brokerage firms in the country have continued to lose money. In 2012, their net loss was $99 million compared with net profits of $22 million in 2011 and $33 million in 2010. According to the latest data available, the challenges continued into 2013 as retail brokerage firms struggled to break even in the first half of the year.
By comparison, the largest integrated brokerage firms recorded net earnings of $1.98 billion in 2012 and $1.8 billion in 2011. These firms earned $829 million in 2013’s first six months.
Richard Chu – Business in Vancouver – JAN 27, 2014.
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