What relationship exists between a broker and a client?
Ontario, Canada
The following excerpt is from Blackburn v. Midland Walwyn Capital Inc., 2003 CanLII 41421 (ON SC):
There was an obvious contractual relationship between the parties, a fee for service arrangement. The plaintiffs paid commission, and margin interest, to the firms and received investment advice as well as processing trades. As said by Keenan J. in Varcoe v. Sterling, supra, at p. 236: “Primarily, a broker’s relationship with the client is that of agent and principal. The agent takes instructions from the principal and carries them out with care, skill and diligence. Failure to do so may give rise to an action in breach of contract or negligence.”
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