-- Initiatives deliver considerably leaner operating platform at
GMP Securities L.P.
-- Richardson GMP assumes ownership of key support personnel as an
important step in the evolution of the wealth management
TORONTO, Jan. 8, 2013 /CNW/ - GMP Capital Inc. ("GMP") (TSX: GMP) today
announced the completion of a comprehensive review of operations, a process
begun during fiscal 2012 in response to challenging market conditions. In
connection with this review, GMP has undertaken ongoing staff reductions,
which together with salary reductions and a rationalization of our real estate
footprint, are expected to generate annual fixed cost savings in excess of $5
million compared with January 2012. Additionally, in collaboration with its
partners at Richardson GMP Limited ("Richardson GMP"), GMP has undertaken a
significant transfer of support personnel from GMP Securities L.P. ("GMP
Securities") to Richardson GMP.
"We embarked on a comprehensive review of our operations with the goal of
unlocking the full potential of our franchise. We also wanted to ensure that
both GMP Securities and Richardson GMP were optimally positioned to continue
delivering on their core value propositions with their respective clients in
as efficient and cost-effective manner as possible," said Harris Fricker,
President and Chief Executive Officer, GMP. Over the past 12 months, GMP
Securities has eliminated 52 positions including 15 earlier today. This
represents a 16 per cent reduction in both total headcount and fixed
compensation expense at the domestic broker dealer operation. "The goal was
to preserve the traditional highly variable nature of our cost base at GMP
Securities and ensure costs remain closely aligned with the level of business
activity in all market conditions."
In collaboration with our partners at Richardson GMP, it was also determined
through the course of the review that Richardson GMP had achieved sufficient
scale to assume direct ownership and control over critical support employees
previously employed by GMP Securities. The 51 employees transferred to
Richardson GMP will continue to support Richardson GMP in the same capacity
areas previously covered by historical joint arrangements.
"This transfer represents another milestone in the evolution of Richardson GMP
as the nation's most compelling independent wealth management solution.
Having these employees dedicated to Richardson GMP will continue to enhance
and build our wealth management offering," said Andrew Marsh, President and
Chief Executive Officer, Richardson GMP. The transfer will positively impact
Richardson GMP's financial performance and, as important, will in no way
impact the considerable revenue synergies between GMP and Richardson GMP.
GMP Securities will continue to provide settlement, clearing, custody and
execution support pursuant to its Type II Introducing/Carrying Broker
relationship with Richardson GMP. "We continue to view Richardson GMP as a
valued business partner and the Wealth Management business as a key growth
component for our firm," said Mr. Fricker.
"We are confident that these initiatives have set the foundation for enhanced
operating efficiency across the entire firm allowing us to capitalize and
build further upon our strengths despite the persistence of challenging market
This press release contains "forward-looking information" as defined under
applicable Canadian securities laws. This information includes, but is not
limited to, statements concerning our 2012 objectives, our strategies to
achieve those objectives, as well as statements made with respect to
management's beliefs, plans, estimates, projections and intentions, and
similar statements concerning anticipated future events, results,
circumstances, performance or expectations that are not historical facts.
Forward-looking information generally can be identified by the use of
forward-looking terminology such as "outlook", "objective", "may", "will",
"expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or
"continue", or similar expressions suggesting future outcomes or events. Such
forward-looking information reflects management's current beliefs and is based
on information currently available to management.
Forward-looking information is not a guarantee of future performance and is
subject to numerous risks and uncertainties, including those described in this
press release. GMP's primary business activities are both competitive and
subject to various risks. These risks include market, credit, liquidity,
operational and legal and regulatory risks and other risk factors including,
without limitation, variations in the market value of securities, the
volatility and liquidity of equity and fixed income trading markets, the
volume of new financings and mergers and acquisitions ("M&A"), dependence on
key personnel and sustainability of fees. Other factors, such as general
economic conditions, including interest rate and exchange rate fluctuations,
may also have an effect on GMP's results of operations. Many of these risks
and uncertainties can affect GMP's actual results and could cause its actual
results to differ materially from those expressed or implied in any
forward-looking information disclosed by management or on its behalf. For a
description of additional risks that could cause our actual results to
materially differ from our current expectations, see the "Risk Management"
section in the Third Quarter 2012 MD&A and "Risk Factors" in GMP's annual
information form dated March 13, 2012. These risks and uncertainties are not
the only ones facing GMP, together with its consolidated operations controlled
by it (the "GMP Group"). Additional risks and uncertainties not currently
known to us or that that we currently consider immaterial, may also impair the
operations of the GMP Group. Material assumptions or factors underlying the
forward-looking information contained in this press release are set out in the
"Business Environment and Market Outlook" section of the Third Quarter 2012
MD&A and include, without limitation: escalation of the sovereign debt crisis
in Europe, a hard-landing of China's economy, insufficient response to high
unemployment and the government debt burden in the U.S. and declines in the
level of commodity prices. Although forward-looking information contained in
this press release is based upon what management believes are reasonable
assumptions, there can be no assurance that actual results will be consistent
with this forward-looking information. Certain statements included in this
press release may be considered a "financial outlook" for purposes of
applicable Canadian securities laws, and as such the financial outlook may not
be appropriate for purposes other than this press release. The forward-looking
information contained in this press release is made as of the date of this
press release, and should not be relied upon as representing GMP's views as of
any date subsequent to the date of this press release. Except as required by
applicable law, management and the Board of Directors undertake no obligation
to publicly update or revise any forward-looking information, whether as a
result of new information, future events or otherwise.
ABOUT GMP CAPITAL INC.
GMP Capital Inc. ("GMP") is a leading independent diversified financial
services firm headquartered in Toronto, Canada, providing a wide range of
financial products and services to a client base that includes corporate
clients, institutional investors and high-net-worth individuals in three
integrated reporting segments. The Capital Markets segment provides investment
banking, including advisory and underwriting services, institutional sales and
trading and research through offices located in Toronto, Montreal, Calgary,
New York, Miami, Dallas, London, Perth and Sydney. The Capital Markets
segment conducts its business through the following operating entities: GMP
Securities L.P., GMP Securities, LLC, Griffiths McBurney Corp., GMP Securities
Europe LLP and GMP Securities Australia Pty Limited. Wealth Management
consists of GMP's non-controlling ownership interest in Richardson GMP
Limited, a full-service independent firm focused on providing exclusive and
comprehensive wealth management and investment services delivered by an
experienced team of investment professionals. The Alternative Investments
segment consists of the investment management and alternative investment
products provided by GMP Investment Management L.P. GMP is listed on the
Toronto Stock Exchange under the symbol "GMP". For further information, please
visit our corporate website at gmpcapital.com.
ABOUT RICHARDSON GMP
As Canada's largest independent wealth management firm, Richardson GMP Limited
provides exclusive and innovative investment solutions to successful families
and entrepreneurs. With offices located in Victoria, Sidney, Vancouver, Banff,
Edmonton, Red Deer, Calgary, Saskatoon, Winnipeg, Guelph, Mississauga,
Toronto, Ottawa, Montréal and Charlottetown, Richardson GMP has earned top
overall ranking in the 2010, 2011 and 2012 Investment Executive Brokerage
Report Card for products and services dedicated to high net worth investors.
Richardson GMP Limited is a member of the Canadian Investor Protection Fund.
GMP Capital Inc. Rocco Colella, Director, Investor Relations 145 King Street
West, Suite 300, Toronto, Ontario M5H 1J8 Tel: (416) 941-0894; Fax: (416)
943-6175 firstname.lastname@example.org email@example.com
Richardson GMP Limited
Tammy Clark, Director, Marketing 350 Burnhamthorpe Road West, Suite 304
Mississauga, Ontario L5B 3J1 Tel.: 905.615.5614 - 866.205.3548
Marie Blouin Nightingale, Manager, Marketing 1250, René-Lévesque West, Suite
1500 Montréal, Québec H3B 4W8 Tel.: 514.989.4848 - 866.697.7174
SOURCE: GMP Capital Inc.
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