Function and Principles of the Profession of Investment Counsel 
As Adopted by the Investment Counsel Association of Canada

WHEREAS, the profession of investment counsel came into being to meet a growing need for a type of competent and unprejudiced service in the investment field not otherwise rendered, and

WHEREAS, experience in the rendering of investment counsel services has established certain basic principles of responsibility and conduct requisite to sound professional practice, and

WHEREAS, these basic principles must be accepted and maintained if the investing public is to be assured of the standard of investment counsel services to which it is entitled:

NOW THEREFORE, we declare the following principles to guide all those who profess to render investment counsel services:

I.       DEFINITION AND LIMITATION OF FUNCTIONS
It is the prime function of the profession of Investment Counsel to render to individual and corporate clients on a personal basis competent, unbiased and continuous advice regarding the sound management of their investments as arranged with the client. Investment Counsel should devote their time primarily to the performance of this function and services incidental thereto. Neither the firm nor any principal or employee should directly or indirectly engage in any activity which may jeopardize the firm's ability to render unbiased investment advice. Investment Counsel must frequently exercise complete discretionary power regarding clients' funds. Therefore, their actions and decisions must be free of bias or self-interest and the opportunity to deviate from this principle should not exist. In particular, no Investment Counsel firm or employee should have any business affiliation or gainful association, except as expressly provided in Article III of the Association's Constitution, with individuals or companies transacting business in securities other than for regular investment counsel fees for personalized and continuous investment advice.

II.       COMPETENCE AND RESPONSIBILITY
To serve its clients effectively and continuously Investment Counsel should be of demonstrated investment ability and unquestioned integrity. No assignment of a contract for Investment Counsel services should be made without the consent of the client and the firm should notify the client and the Association promptly of any material change in its ownership.

III.       COMPENSATION FOR SERVICE
Compensation for Investment Counsel services should consist exclusively of direct charges to clients for services rendered. Compensation should never be contingent upon the number or value of transactions.

There should never be a division of Investment Counsel fees between a member of the Association and any other person without full disclosure to the client.

In cases where fees are charged in advance of the actual performance of the services involved, sufficient capital and reserves should be maintained at all times to enable the firm to refund all unearned fee income.

IV.       SOLICITATION OF NEW CLIENTS
The methods employed and all written or oral statements made by Investment Counsel in securing new clients should conform to standards consistent with the professional nature of Investment Counsel services.

V.       CONFIDENTIAL RELATIONSHIP
All information concerning the security holdings and financial circumstances of clients, should be held in strict confidence by Investment Counsel.

This document is proprietary to the ICAC for the exclusive use of its Members.