ROYAL TRUST PLANS NO BROKERAGE UNIT
<Royal Trustco Ltd> said it does not
plan to enter the brokerage business when ownership of Ontario
investment dealers is opened to other financial institutions on
June 30.
    "The short answer is no, we do not intend to get directly
into the brokerage business, but we will compete with it,"
chief executive Michael Cornelissen told the annual meeting in
reply to a shareholder's inquiry.
    Cornelissen said Royal Trust, Canada's second biggest trust
company, was concerned about a possible conflict of interest
between its current asset management functions and brokerage
and stock promotion activities.
    Cornelissen also cited the heavy competition in the
Canadian securities industry as a factor in Royal Trust's
decision to avoid direct involvement in a brokerage firm.
    He told shareholders, however, that Royal Trust would
continue to compete with investment dealers through its asset
management programs and discount processing of retail stock
trades.
    Royal Trust also plans to take further advantage of
networking possibilities offered by its involvement in
financial conglomerate <Trilon Financial Corp>, 50 pct-owner of
Royal Trust, Cornelissen said.
    Afterward, Cornelissen told reporters that Royal Trust's
Dow Financial Services Corp unit planned no more divestitures
after its previously reported agreement yesterday to
restructure its financial operations in Asia with joint owner
<MBF Holdings Ltd>.
    Cornelissen also told reporters the company was confident
of achieving its targeted 15 pct growth in earnings per share
this year. Royal Trust's basic per share earnings rose 16 pct
in 1986 to 2.20 dlrs.
    "With two months of the year gone, we are ahead of it (the
15 pct growth target)," he said.
 Reuter
