Wealth management: private bank or independent firm?
You're with RBC Wealth Management, BMO Nesbitt Burns, National Bank Private Wealth 1859 or Desjardins Private Wealth and wondering whether there's another option? Here is a comparison of the two models: costs, originality, custody, service and conflicts of interest.
- Real costs
- Management discretion
- Custody of assets
- Conflicts of interest
How big the major institutions are, and what that means for your portfolio
The big banks manage or administer hundreds of billions of dollars. That size limits what they can buy for you.
It's a bit like the restaurant business: you can aim for a Michelin star or build a chain of 500 restaurants, but rarely both. A chain has to serve the same menu everywhere, using ingredients available in industrial quantities. A starred chef can buy a local farmer's small harvest and tailor every plate. Portfolio management works the same way.
RBC Wealth Management
Assets under administration in Canadian Wealth Management, including RBC Dominion Securities.
National Bank · Private Wealth 1859
Assets under administration for the whole Bank, including National Bank Financial and custody services provided to other firms.
BMO Nesbitt Burns · BMO Private Wealth
Assets under management, BMO Wealth Management group.
Desjardins Private Wealth
Assets under management and advisement at Desjardins Global Asset Management and Guardian Capital.
Rounded figures (2026) from the institutions' public reports. The measures differ (assets under administration, assets under management) and are not directly comparable: they show an order of magnitude.
Why size limits personalization
The problem is arithmetic. A platform that runs the same model portfolio across tens of thousands of accounts has to be able to buy each holding in enormous size. If $50B follows one model, a 2% position is $1B. In a company with a $500M market value, that is impossible; in a $5B company, it would be 20% of the business.
The result: model portfolios, approved lists and in-house analyst coverage concentrate on very large companies (banks, pipelines, telecoms, U.S. mega-caps) that everyone follows, and on funds. An advisor can sometimes buy an off-list stock at your request, but the standard offering is built for scale.
What a smaller firm can do
A smaller manager can buy an under-the-radar $1B company without moving its price, pick securities around your situation, existing holdings and preferences, and offer you opportunities different from the major stock indexes.
Ask your current manager how much of your portfolio is invested outside very large companies and funds, and why. The answer says a lot about how personalized your management really is.
Private bank or independent firm: the differences, point by point
This table describes the models in general.
| Criterion | Private wealthWith a bank-owned institution | McLean CapitalPortfolio manager registered with the AMF |
|---|---|---|
| Costs | Fees based on assets, often 0.7% to 1.5% a year for an average portfolio. No performance-based component in the compensation. | Fees based on assets, often 0.2% to 0.7% a year. Performance-based component in the compensation. |
| Originality | Standardized portfolios, so hundreds of billions in assets under management can be served. | A portfolio built for you, not for scale: companies of every size, including under-the-radar stocks the big platforms cannot buy, chosen around your situation and existing holdings. |
| Custody | The assets are held by the same institution that advises on or manages them, in an account in your name. Member of CIRO and CIPF. | The assets are held by a federally chartered bank, in an account in your name, separate from the manager. The manager can place trades but cannot withdraw the money. The custodian is a member of CIRO and CIPF. |
| Service model | Large teams and services under one roof: financial and retirement planning, tax, estate, trust, holding companies, credit and mortgages, banking and insurance. These services are also an opportunity to sell you the institution's products. Advisor turnover and access thresholds can vary with account size. | Direct access to the person who makes the investment decisions. At McLean Capital, every service is provided directly or by an independent professional:
McLean Capital sells no banking, credit or insurance products: our referrals to professionals are not tied to any product we sell you. |
| Conflicts of interest | Funds and products from the same family, internal sales targets, cross-selling of banking products. Firms must disclose these conflicts and address them in your best interest. | No banking, credit or insurance products to sell, and no internal sales targets. Fees are transparent and material conflicts are disclosed in writing. |
| Investment universe | Built for scale: model portfolios, approved lists and in-house funds, focused on large caps and highly liquid securities. | Can include small and mid-cap companies and securities chosen for each client. The portfolio is built for you, not for scale. |
| Strength | The balance sheet of a major bank and a well-known brand. | The safety of the assets rests on the custodian, not on the size of the manager: your securities are held in your name at a CIRO and CIPF member dealer. |
Indicative ranges based on published fee schedules and statements reviewed by our team. Actual fees vary by institution, account type and portfolio size. RBC, BMO Nesbitt Burns, National Bank, Private Wealth 1859 and Desjardins are trademarks of their respective owners; McLean Capital is not affiliated with them.
Where McLean Capital fits
McLean Capital is an independent portfolio manager based in Laval, registered with the Autorité des marchés financiers as a portfolio manager and exempt market dealer. We manage our clients' accounts on a discretionary basis.
Your assets are held in your name at Laurentian Bank Securities, a member of CIRO and CIPF.
Portfolio manager registered with the AMF.
Account in your name at Laurentian Bank Securities, a member of CIRO and CIPF.
Sliding scale based on the amount, plus taxes.
You speak with the person who manages your portfolio.
Changing wealth managers: your questions
What are the alternatives to RBC Wealth Management, BMO Nesbitt Burns, National Bank Private Wealth 1859 or Desjardins Private Wealth?
The main alternatives are independent portfolio managers registered with the Autorité des marchés financiers (AMF), independent investment dealers not tied to a bank, and family offices for larger estates. An independent manager like McLean Capital runs the portfolio on a discretionary basis, while the assets stay in an account in the client's name at a third-party custodian that is a member of CIRO and CIPF.
Is an independent firm cheaper than a private bank?
Often, yes, especially when the firm holds securities directly rather than funds. The only way to check properly is to compare apples to apples: you have to consider every fee for the same amount invested.
Is my money safe with a small independent firm?
Safety depends mainly on custody. With a well-structured independent manager, the securities are held in an account in your name at a regulated custodian that is separate from the manager. The manager can place trades in the account but cannot withdraw the money.
What is discretionary management?
With discretionary management, you sign an investment policy and the manager then makes buy and sell decisions without asking you to approve each trade. In Quebec, only a person registered as a portfolio manager (or approved as one within a dealer) can manage an account on a discretionary basis. In a non-discretionary account, the advisor must get your consent before every trade.
Why do the big banks invest mainly in large companies?
A large institution manages hundreds of billions of dollars, often through model portfolios applied to thousands of accounts. For a position to matter in those portfolios, it has to be worth hundreds of millions of dollars, which is impossible in a small or mid-sized company without buying an outsized share of it. Model portfolios and approved lists therefore concentrate on large caps and funds. A smaller manager can invest in smaller companies, and build a portfolio truly suited to each client.
Do bank advisors have conflicts of interest?
Every firm has conflicts of interest; the question is which ones and how they are managed. In an integrated institution, typical conflicts are recommending funds from the same family, internal sales targets and compensation tied to assets or products. Regulation requires firms to disclose these conflicts and address them in the client's best interest.
How do I compare the fees I currently pay?
Take your Annual Report on Charges and Other Compensation, add the management expense ratios of the funds you hold, and express the total in dollars and as a percentage of your portfolio. Statements covering 2026 must now include ongoing fund costs, which makes the comparison easier. If you like, we will run this calculation for you, free of charge.
Know the real cost of your current management
Bring your latest statement from RBC, BMO, National Bank, Desjardins or anywhere else. We calculate your real fees and past returns and give you our candid opinion, even if it is to stay where you are. Free and with no obligation.