Briefly:

(December 10, 2004) In a bid to improve corporate governance, TD Bank Financial has introduced term limits for its board of directors and a move to a single auditor in fiscal 2006. Directors can serve to a maximum of 10 years under the new guidelines and will face an annual performance review and re-election by shareholders.

“We have listened to shareholders and other corporate governance leaders and believe term limits are needed because many directors are joining boards at a younger age,” said John Thompson, chairman of the board of directors, TD Bank Financial Group. “Directors who join our board in their forties could conceivably serve for 30 years, so term limits help guarantee board renewal and fresh perspectives.”

The guidelines also require any executive officer of the bank to resign as a director of the board on retirement, unless the board feels there is a specific need to retain the director’s expertise. They may be kept on to help with the transition period.

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Appeals court rejects Costello

(December 10, 2004) The Ontario Court of Appeal has dismissed Brian Costello’s appeal of the OSC decisions against him, dated February 18, 2003 (on the merits) and April 29, 2003 (on sanctions). Costello has now exhausted all routes of appeal available to him.

In its decision on the merits, the Commission found that Mr. Costello had been acting as an advisor, as defined in the Securities Act, in that he was making recommendations on specific securities during his investment seminars.

The Commission found that by acting as an adviser without being registered, Costello breached section 25(1)(c) of the Act. The Commission also found that Costello’s “failure to make full, complete and conspicuous disclosure” of his many conflicts of interest was contrary to the public interest.

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New software keeps track of clients

(December 10, 2004) Tech Platforms has released a software module for its GoldMine CRM template, which will allow advisors to integrate it into PlanPlus Financial Planning Software.

“As a financial planning solution it is important for our software to have a complete view of the client – their assets, debts, insurance, budget, goals and more. The information that an advisor gathers as a part of the planning process is extremely powerful for marketing purposes,” says Shawn Brayman, president of PlanPlus Inc. “The integrated CRM solution from Tech Platforms, when combined with our electronic hooks to the back office plus the off-book data collected during the planning process, creates a tool advisors are desperate to have.”

The integration module pulls the financial planning information from the PlanPlus Financial Planning Software into the CRM product, giving advisors a current customer profile for marketing purposes.

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(December 9, 2004) Industrial Alliance has introduced group critical illness insurance coverage for employers that the company says will complement group health and disability insurance benefits.

The product covers 18 critical illnesses and can be extended to a client’s spouse and children.

Group critical illness insurance coverage guarantees the payment of a lump sum amount following the diagnosis of a covered critical illness. Protection varies from $5,000 to $1 million, with an optional plan designed for children.

“Although medical advances and research have increased the chances of survival following a critical illness, this does not reduce the financial impact of the diagnosis of such an illness,” says Industrial Alliance vice-president Jacques Parent. “With group critical illness insurance, employers can now alleviate the financial pressure on employees who have to defray certain expenses that are incurred when they are stricken with a critical illness.”

ING closes Allianz deal

(December 9, 2004) The Canadian subsidiary of Dutch financial giant ING has announced the closing of its acquisition of Allianz Canada’s property and casualty operations, for about $370 million.

Under the deal, ING Canada picks up Allianz Canada and subsidiaries Allianz Insurance Company of Canada, Trafalgar Insurance Company of Canada as well as Canada Brokerlink, a network of insurance brokerages operating in Ontario and Alberta. Allianz will, however, retain its Canadian industrial lines business.

ING plans to partly finance the deal through an initial public offering of ING Canada shares.

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FundGuard analytical software launched

(December 9, 2004) Toronto-based Angoss Software today announced the introduction of FundGuard, predictive analysis software for mutual fund managers.

The company says FundGuard can help fund firms increase assets under management and reduce redemption risks.

Predictive analytics can help managers discover, predict and act on who will redeem funds and who will purchase in the coming months, Angoss said in a release.

“Being able to predict best sales opportunities and act to reverse redemption risks before the fact provides immense leverage in the market,” says Angoss president Eric Apps.

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(December 8, 2004) Nortel Networks says it will soon begin releasing its long-awaited financial statements.

Nortel expects to release limited figures for the third quarter of this year next week, as well as update estimates dating as far back as 2001.

In January, Nortel says it will start releasing full audited results. The tech firm has already missed three self-imposed deadlines for releasing financial statements.

The tech firm has been under pressure from regulators to sort out of its financial books, amid concerns about past accounting practices.

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Desjardins launches new term investments

(December 8, 2004) Desjardins Financial Security is expanding its line of retirement savings products, adding two new six-year term investments.

The Alternative Allocation Portfolio has a variable return linked to a basket of seven traditional and non-traditional asset classes, including hedge funds.

The Selective Advantage Index is linked to the performance of six market indexes in Europe, Asia and the United States.

The term products are RRSP-eligible, redeemable at any time, and include a 100% capital guarantee at maturity and at death. Both require a minimum investment of $500 and are offered through Laurentian Financial Services.

“These two products will interest individuals who want to preserve their capital and who seek returns that exceed those of guaranteed investment certificates,” said Desjardin’s Michael Aziz.

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Canadian disciplined by New York Stock Exchange

(December 8, 2004) The New York Stock Exchange has barred a former registered representative from Mississauga, Ontario.

The NYSE alleges that Paul Maines — who worked in the securities industry from 1997 to 2001 — was the subject of several client complaints involving unauthorized fund transfers and fictitious monthly account statements.

He is also accused of failing to cooperate with the exchange’s investigation. The ban will become permanent in three months unless Maines responds to the NYSE with an explanation for his actions.

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AGF Trust enhances RSP loan program

(December 7, 2004) AGF Trust has launched an enhanced online RSP loan program designed to help investors maximize the value of their RSPs, with loans starting at 1% below prime. The loans can now be used to buy non-AGF investments, as well as AGF products.

“Borrowing to invest can be an effective strategy to maximize retirement savings and reach long-term financial goals,” said John Bennett, vice-president, financial products and services at AGF Trust. “This year our RSP loan program offers more choices than ever to suit the needs of a range of investors.”

Loans are available for RESP investments, as well as RRSPs, with instant online approvals offered 24 hours a day through advisors and agents. All applicants are guaranteed a loan approval for at least $2,500, regardless of credit history and there is no income verification up to $50,000.

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Bank rate unchanged due to strong loonie

(December 7, 2004) The Bank of Canada is maintaining its target of the overnight rate at 2.5%, leaving the bank rate steady at 2.75%. In making the decision, the Bank cited the strength of the Canadian dollar and its effect on the trade, as well as an inflation rate below 2%.

“The main risks and uncertainties around the outlook for the Canadian economy … relate to global imbalances, the realignment of currencies, commodity prices, the growing presence of emerging market economies, such as China and India, and the related adjustments within the Canadian economy,” read a statement from the Bank.

BMO Financial Group senior economist Sal Guatieri said interest rates will likely remain static until the fall of 2005, due to the strength of the dollar.

“We don’t expect the Bank of Canada to resume raising rates until the fall of 2005, and only if growth remains close to potential in the first half of the year, as we expect,” he said. “A further sharp appreciation of the currency, or evidence that its impact is more severe than anticipated, could cause the Bank to unwind some of its earlier rate increases.”

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Manulife hires CIBC Mellon as custodian

(December 7, 2004) CIBC Mellon has been appointed custodian by Manulife Financial Corporation for general, segregated and mutual funds in Canada, a mandate totalling $60 billion in assets.

“We selected CIBC Mellon because of their strong industry reputation, along with their exclusive technology offerings,” said Bill Hutchinson, director of securities operations at Manulife Financial. “Another major factor for us was CIBC Mellon’s real-time reporting and straight-through processing initiatives, all of which fit well with Manulife’s operational philosophy.”

This is the largest single contract in CIBC Mellon’s history. CIBC Mellon Trust Company has provided transfer agency services, such as maintaining the master register of shareholders, and coordinating activities for Manulife’s worldwide shareholders since 2001.

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AIM Trimark gives income fund a facelift

(December 6, 2004) AIM Trimark is changing the name of its income fund, as well as the portfolio management team and the fund’s investment strategies.

Effective December 15, AIM Canada Income Class will be renamed Trimark Diversified Income Class. The fund will be managed in Toronto by members of the Trimark team, consisting of Don Simpson, Rory Ronan, Rex Chong and Anthony Imbesi.

Although the fund’s investment objectives — to generate steady income by investing mainly in shares of established Canadian companies and high-quality royalty and income trusts — will remain unchanged, the fund will use a “wider range of investment vehicles to capitalize on the different opportunities that present themselves across a variety of markets,” the company said today in a release.

The changes could include investing in REITs, foreign and domestic fixed-income securities, including high-yield, investment grade, preferred shares and convertible debt, and writing covered call options on equities held in the portfolio to generate income.

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Ottawa announces modest cuts to EI contribution rates

(December 6, 2004) The federal government is reducing the employment insurance contribution rate for employees to $1.95 from its current level of $1.98 per $100 of insurable earnings, effective January 1, 2005, Finance Minister Ralph Goodale announced today.

The rate paid by employers will also drop, to $2.73 from $2.77 per $100 of insurable earnings. Since maximum insurable earnings will remain at $39,000 for 2005, the change means a $12 reduction in EI contribution rates for employees and a $16 decrease for employers.

“Today’s announcement represents the 11th consecutive reduction in the EI premium rate since 1994, when the rate was $3.07. As a result of these rate reductions, employers and employees will pay $10.5 billion less in premiums in 2005 than they would have paid under the 1994 rate,” Goodale said.

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