Iplayco Corp Ltd IPPQF

RE: FFH Watcher please provide insight

[FFHWatcher]

I know of no 'rush for the gates' at IPC. I have heard some rumours but the reality is, most of IPC's AUA are tied up in the Senior Associate Share Plan (SASP). The reps books of business are owned by IPC, not the rep. IPC purchased their books in return for shares. In return IPC gets an extra 10% in commission on the book of business and owns it. If the rep leaves, the clients stay with IPC. Secondly, In this market environment, clients do not want to talk to their reps, let alone have the confidence in the rep to change mutual fund dealerships, sign a dealer change letter and then receive a letter from IPC stating that they can't change their account over because it is owned by IPC. Also the rep would likely receive a Cease and Desist letter if they try to move their book of business out of IPC (ie. Investors Group). Most of the large producing IPC reps will likely stay for the above reason and because I don't think there is a better alternative right now. The only reason that I can see why a rep would leave IPC and risk losing their entire book of business is if the rep believes IPC is insolvent and that an acquirer will not be found. In that event, IPC would not have the financial or personnel resources to chase down all the reps that are leaving, regardless of who owns the book. I do not believe the above scenario to be the case. If ING was not a significant financial backer of IPC, my opinion may change.