National Bank of Canada has closed the acquisition of TD’s institutional services business known as TD Waterhouse Institutional Services (TDWIS).

According to National Bank, the acquired business will be integrated into its Correspondent Network (NBCN), which is a Canada-based provider of custodial, trading, clearing, settlement and record keeping services to independent registered portfolio managers and introducing brokers.

Luc Paiement, executive vice president of wealth management, co-president and co-CEO of National Bank Financial, said: "This transaction is another major step in the implementation of National Bank’s strategy of expanding across Canada by broadening the footprint of our wealth management platform.

"It will add considerable scale to our operations and, in the process, bring a number of appreciable benefits to all National Bank wealth management clients in the form of new products and services," Paiement added.

As a result of the acquisition, National Bank’s Basel III Common Equity Tier 1 ratio will be reduced by approximately 40 basis points as at National Bank’s quarter ending 31 January 2014.

Client conversion is expected to be completed in the 8 months following the closing of the transaction, and a transition services agreement will be in place in the interim.