BROKER'S WORLD CANADA: RBC Tightens Leveraged ETF Policy

TORONTO (Dow Jones)--Royal Bank of Canada (RY) has opted to be choosy on which type of investors in Canada can purchase leveraged Exchange-Traded funds.

In recent months, RBC Dominion Securities, the retail brokerage arm of the Canadian bank, has started to sell leveraged ETFs only to accounts that have been approved for options trading, given that options are the underlying securities in leverage ETFs.

The new policy is effective for investment adviser-managed fee-based and transactional commission-based acccounts, said Mike Scott, managing director for RBC Dominion.