Briefly:

(June 27, 2003) The “made-in-Canada” response to Sarbanes-Oxley looks an awful lot like… well, Sarbanes-Oxley. The Alberta Securities Commission released the new corporate governance rules today for public comment.

Most familiar among the new regulations is the call for CEOs and CFOs to certify their company’s annual and quarterly filings and that “reporting issuers to have independent and financially literate audit committees with prescribed duties.” Auditors must also be members of the Canadian Public Accountability Board.

British Columbia is the only [Canadian Securities Administrators] jurisdiction withholding support for these new measures, which are titled Multilateral Instrument 52-108 Auditor Oversight, 52-109 Certification of Disclosure in Companies’ Annual and Interim Filings and 52-110 Audit Committees.

• • •

Fraser Institute declares “Tax Freedom Day”

(June 27, 2003) The average Canadian will have their taxes paid as of tomorrow and can start working for themselves, according to the Fraser Institute.

The so-called “Tax Freedom Day” is used by the Vancouver think-tank to demonstrate to Canadians how much of their earnings end up being paid in taxes to the three levels of government.

“The fact that Tax Freedom Day falls only four days earlier than its latest date ever should be a cause for concern,” said Jason Clemens, director of fiscal studies at the Fraser Institute. “All the talk of tax relief has not resulted in meaningful reductions in the tax burden for most Canadian families.”

• • •

Cartier hires RBC for sale advice

(June 27, 2003) Cartier Capital Limited Partnership, the majority shareholder of Cartier Partners Financial Group, has hired RBC Capital Markets as its financial advisor in the sale of the group.

Jean Dumont, the president of Cartier Capital L.P., said, “The process will be conducted in a manner that minimizes any disruptions to the operation and allows Cartier Partners to continue to provide high-quality services and grow its retail business while we find a buyer that will maintain our high standards.”

• • •

HRDC boosts old age payouts

(June 26, 2003) Human Resources Development Canada has announced the cost of living adjustment for OAS benefits will be 1.2% for the next three months. For the average senior, this will see the basic payment rise to $461.55 per month.

The benefit is recalculated every three months to reflect inflation, based on the rise in the consumer price index over the previous three-month period.

Roughly 95% of Canada’s senior citizens collect the OAS, which puts over $25 billion into the pockets of 4 million people over the age of 65.

• • •

Shareholders prefer risk-takers: PwC

(June 26, 2003) Companies that “manage for risk” were beaten in the stock market by those that “managed for value,” according to a report from PricewaterhouseCoopers.

The report, titled “Out-Performance — Delivering better returns over the long term”, said companies that focused on long-term, strategic management performed 24% better than companies that took a more tactical, risk-averse focus.

The report says that investors far preferred companies that were taking chances on organic and inorganic growth strategies, rather than those that tried to simply preserve shareholder value.

• • •

OSC names three new commissioners

(June 26, 2003) The Ontario Securities Commission has appointed Wendell Wigle, Paul Kevin Bates and Suresh Thakrar to the position of commissioners, bringing the number to 14.

Wigle, who was appointed May 28, is a civil litigation specialist, member of the Queen’s Counsel, and the senior litigation counsel at Hughes, Amys.

Bates, appointed June 11, is a former CEO of Charles Schwab Canada and is a faculty member at the University of Toronto’s Joseph L. Rotman School of Management.

Thakrar, also appointed June 11, is a former VP at RBC Financial.

• • •

Fed trims key lending rate to 1%

(June 25, 2003) The U.S. Federal Reserve today cut its key overnight lending rate 25 basis points to 1%, its lowest level since 1958.

In a statement, the Fed’s Open Market Committee said that although there has been underlying growth in productivity and a firming in spending, marked by improved financial conditions, the American economy has yet to exhibit sustainable growth.

Analysts had anticipated an interest rate reduction, but were split between a quarter-point and a half-point cut.

The move increases the spread between Canadian and U.S. rates. The Bank of Canada raised its key lending rate by 25 basis points twice this year to 3.25%. The next Canadian interest rate announcement comes July 15.

• • •

Ontario court dismisses Morgis appeal

(June 25, 2003) The Ontario Court of Appeal has dismissed an investor’s attempt to sue the IDA. Christopher Morgis wanted to add the IDA as a defendant to his statement of claim against defunct brokerage firm Thomson Kernaghan.

Morgis, who claims to have lost more than $2 million, argued that the IDA failed to ensure Thomson Kernaghan’s competence and failed to adequately investigate the case when he filed a complaint against the firm more than two years ago.

“We are pleased that today’s decision again confirms the IDA’s position as a regulator acting in the interests of the public,” said Paul Bourque, the IDA’s senior vice-president of member regulation. “Regulators must be free to regulate in the best interest of the public without threat of legal action from individual clients.”

• • •

AGF reports weaker Q2 profits

(June 25, 2003) Mutual fund firm AGF Management today reported net income of $19.6 million for the second quarter of 2003, down 47% from the same period last year. Revenues declined 21% to $141 million, from $179 million in 2002.

Despite the weaker revenues, AGF’s mutual fund assets under management have risen 12% since March, to $22.2 billion. “We are building on momentum thanks to rigorous cost control in our wealth management business and higher assets under management driven by stronger equity markets,” said company president Blake Goldring.

• • •

Doctors buy Saxon

(June 24, 2003) The Canadian Medical Association’s CMA Holdings Inc. has purchased Howson Tattersall Investment Counsel, giving the doctors’ federation control of Saxon Mutual Funds.

CMA Holdings already operates MD Management, which offers financial products exclusively to doctors and their families. There should be no discernable difference to investors in either MD or Saxon products, the parties said in a press release.

Both Rick Howson and Bob Tattersall will remain with their firm, as chief investment officer and executive vice-president respectively.

• • •

National Life offers hedging options

( June 24, 2003) The popularity of hedge funds continues to grow, as National Life will now offer Hedge Accounts to holders of Flex Accounts and e-Universal Life policies.

“Investments like GICs currently lack appeal because of low interest rates,” says Promod Sharma, actuary for individual insurance. “Therefore, we’ve added a new category of investments which offer performance based on hedge funds.”

Investors can place up to 80% of their investment into the Hedge Account, with a minimum investment and withdrawal of $1,000.

• • •

Unity Life offering CI

( June 24, 2003) Unity Life has begun offering critical illness insurance, in a product branded as LifeCare. The policy covers 21 medical conditions with an available rider for 13 additional juvenile conditions to cover policyholders’ dependants.

The policy also offers access to the Best Doctors service, which arranges for international specialists to assist in drawing up a course of treatment.

Critical illness insurance has become one of the hot products recently, offering a safety net for policyholders who become too ill to work. The main goal of such policies is to provide income to cover the loss of wages.

• • •

Clearing system bans tele-cheques

(June 23, 2003) The Canadian Payments Association (CPA), the body that oversees clearings and settlements nationwide, says it will ban “tele-cheques” from its system as of January 1, 2004. The CPA says that the payment option poses too much risk to both consumers and financial institutions.

Tele-cheques look like regular cheques but are usually produced by the party receiving funds in a transaction using special software. The cheques are not signed by the account-holder, as the transactions are usually conducted over the telephone or Internet.

Tele-cheques are not yet widely used in Canada and the CPA says it is unaware of any abuses of them yet. Companies that do use tele-cheques must find a new billing option by the January deadline.

• • •

Alberta regulator approves oil and gas disclosure rule

(June 23, 2003) The Alberta Securities Commission (ASC) has approved National Instrument 51-101, a regulation that will require oil and gas companies to disclose the estimated size of their reserves.

“The new standards are designed to give investors reliable, consistent and useful information, to build and sustain confidence in our capital markets that a thriving oil and gas sector depends upon,” said ASC chair Stephen Sibold.

The disclosure will coincide with the release of financial statements and will include comparisons to the previous year’s estimates. NI 51-101 will take effect in 2004.

• • •

Mackenzie changes year-end on several funds

(June 23, 2003) Mackenzie Financial has adjusted the year-end date on several of its funds including the Mackenzie Short-Term Bond Fund and 21 funds under the Quadrus brand.

The funds will now end their fiscal year on June 30, instead of December 31, to bring them in line with the majority of Mackenzie’s other funds. The change is effective June 30, 2003.

Mackenzie says the move will reduce administrative costs.

• • •

(06/23/03)