Briefly:

(April 8, 2004) IPC Financial has announced the purchase of Winnipeg-based mutual fund dealer Prime Financial Securities.

“We are delighted by Prime Financial’s decision to join IPC” says Steve Meehan, CEO of IPC. “This relationship strengthens our presence in the Manitoba market and reaffirms IPC’s focus on building and supporting independent financial advisors.”

The agreement effectively transfers Prime’s licensed mutual fund representatives to IPC Financial Network’s subsidiary, IPC Investment Corp.

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Desjardins takes new tack

(April 8, 2004) Desjardins is seeking investor approval for changes to the investment strategies of several funds. The plan includes adoption of an active management strategy for Desjardins Select Funds.

The company would also like to start hedging with derivatives in its Desjardins Dividend Fund. Desjardins plans to have the new strategies in place by July 1.

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Terra Firma fund management brought in-house

(April 8, 2004) IPM Funds Inc. (IPM) has announced it will internalize the management of its Terra Firma Funds, in an effort to control expenses, terminating its arrangements with CastleHill Ventures and The Harbinger Ventures Group.

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IDA to create course accreditation program

(April 7, 2004) The IDA is looking for an external vendor to evaluate courses, programs and seminars for CE eligibility. The successful candidate would examine outside course providers against accreditation criteria developed by the IDA to determine eligibility.

“Members have expressed an interest in a course accreditation program to minimize the review they need to conduct on courses,” the IDA says. “An accreditation program will also bring greater certainty to members that the courses they are being offered will not be challenged by the IDA.”

The IDA works on a three-year CE cycle and has two types of requirements: professional development and compliance. The professional development program requires at least 30 hours of work, although some participants are exempt. The compliance course, which takes at least 12 hours, is mandatory.

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Empire Life reports higher profits

(April 7, 2004) Empire Life Insurance earned $17.7 million in 2003, a 21% rise from the previous year, the Toronto-based company reported today.

Empire says its employee benefits business posted a record net profit of $11 million last year.

Capital and surplus earnings rose thanks to the stock market rebound. Individual insurance sales were also higher; however, net income in that category was weaker overall due to the “significant impact of changes in reserve assumptions and increased new business sales strain,” the company said.

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CCH wins online award

(April 7, 2004) Business information provider CCH Canadian has received an award for its Web service, CCH Online Enhanced. The e-Content Institute presented CCH with the best business information services award at a gala held recently in Toronto.

The institute said that the CCH Online service “pulled together a large quantity of legal and business resources into one handy resource. Many of the included sources are updated daily to provide timely information to clients.”

CCH Online is a searchable database delivering tax, financial planning, business and legal information.

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McLean Budden cuts MERs

(April 6, 2004) McLean Budden has announced it is reducing management expense ratios (MER) by five basis points to 1.25% on equity funds. Balanced fund MERs will drop to 0.95% and 0.55% on money markets.

“In 2000, we last lowered our MERs from what was already a low base,” said Douglas Mahaffy, president and CEO. “We’ve experienced strong asset growth — our mutual fund assets passed the $1 billion mark in January — and we’ve been able to reduce our costs through internal efficiencies. As a result, we can further reduce our fees today.” The firm points to an industry average of 2.33% MERs equity funds.

The firm also announced the launch of a new Canadian equity fund, which will be made up of large cap stocks. The fund is “style-neutral” and mirrors the MB Canadian Equity (Core) pooled fund. Unlike the company’s other Canadian equity funds, it offers no foreign exposure.

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Scotia backs single regulator

(April 6, 2004) The formation of a single national securities regulator is key to the country’s financial success, according to the chair and CEO of Scotia Capital.

“Over the course of my 30 years in the securities industry, I’ve witnessed the changes that have been driven by the powerful forces of globalization and technology. Canadian business has adjusted to this reality, but I feel that the Canadian securities framework risks falling further behind,” said David Wilson in a speech to the Calgary Chamber of Commerce. “The single regulator provides a clear and comprehensive response to the imperatives of efficient capital markets in a global setting and best positions Canada for future success.”

“When I consider the need to meet global best practices, investor protection and economic efficiency, the case for a single regulator has never been stronger,” he said, saying that adopting the proposed passport model would be “settling for second best.”

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Montreal Exchange boosts profits

(April 6, 2004) The Montreal Exchange has announced its earnings for 2003, ringing up revenues of $38.6 million and profit of $6.5 million, well up from the $61,000 earned in 2002.

“The Montreal Exchange has rapidly become profitable and viable,” said Luc Bertrand, president and CEO of the exchange. “There is no doubt that we are experiencing solid growth and the Montreal Exchange is well-positioned to ensure its leadership in the growing market segment of derivative financial instruments.”

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Investors Group seeks new name

(April 5, 2004) Investors Group is seeking shareholder approval to change its public company name to IGM Financial. The name change will not affect Investors Group or Mackenzie brands.

The new name was chosen to reflect the combination of IG and Mackenzie. The name change will be effective in May 2004, if it is approved by shareholders and regulators.

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Tax filers opt scrap paper

(April 5, 2004) The Canada Revenue Agency (CRA) has announced a dramatic increase in the number of people opting to file their taxes electronically this year.

As of today, 9 million people have filed their 2003 income tax return, with more than 1.4 million people using Netfile — an increase of 23% over last year.

Including Telefile and E-File, 4,890,190 people have filed their taxes electronically so far, an increase of 14.9%.

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(04/05/04)