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(May 12, 2006) Dan McTeague, the Liberal MP for Pickering-Scarborough, Ont., has introduced a private members bill to make registered education savings plans tax deductible.

The bill, which was introduced on May 4, would align the regulations around RESPs with RRSPs, making them dollar-for-dollar tax-deductible. The plan would allow contributions up to a maximum annual allowance and unused portions could be carried forward.

Under McTeague’s proposal, money in the RESP would be taxed once it’s cashed for use to cover education expenses. In the event the beneficiary does not pursue post-secondary education, the RESP could be cashed by the purchaser and taxed as part of their annual income.

“I believe the bill’s objective will help students and their families face the financial challenges of mounting tuition costs and also help lessen the burden of post-graduation debt,” McTeague said in a statement. “It is my hope that it will encourage more Canadian families to open RESPs and thus provide more students with access to a post-secondary education.”

McTeague says the cost of a four year program in residence will be in excess of $100,000, by 2018. As a private members’ bill McTeague’s motion has garnered little attention since it has virtually no chance of becoming law. A vote on the bill could reportedly come as early as June.

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Investor 500 annual ranking unveils Canada’s top stocks

Canadian Business magazine’s annual ranking of publicly traded companies shows 86% of the 500 largest firms, by market capitalization, generated positive returns for the 12 month period ending April 21, up from 74% in 2005. Fully 386 companies rewarded shareholders with double digit gains or better, compared to last year’s 314.

While some market watchers think the good times will continue to roll, others say investors should be paying closer attention to warning signals, such as the attention Canada is receiving from foreign investors, the country’s concentration of resource companies and the fact that cash is becoming an increasingly competitive asset class.

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Ethical Funds issues proxy voting guidelines

The Ethical Funds Company issued it’s 2006 proxy voting guidelines yesterday, outlining its position on issues of transparency, accountability and responsible reporting.

The company says proxy voting is important, as it allows shareholders to influence corporate policy on a wide range of environmental, social and corporate governance issues. The company first began disclosing its proxy voting guidelines back in 2000.

“An open and transparent disclosure process is the best course of action to ensure that mutual funds are voting in the best interest of investors,” says Ethical Funds vice president of sustainability, Bob Walker.

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D’Alessandro sells Manulife shares to diversify

Manulife president and chief executive officer, Dominic D’Alessandro announced today that he plans to exercise his stock options and sell up to 500,000 common shares of the company, approximately 12% of the holdings he currently owns or expects to acquire, sometime during the remainder of the year.

The common shares were calculated without giving effect to the recently-announced split of the company’s common shares by way of stock dividend.

“Manulife is and will remain my largest personal investment by a wide margin,” D’Alessandro said in a statement. “I continue to be very positive about the company’s prospects and look forward to continuing to grow our business. But given my current level of holdings, my financial advisors, with the full support of Manulife’s board of directors, have encouraged me to diversify my investments.”

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OSC extends Juniper cease trade order

The Ontario Securities Commission has extended its temporary order suspending trading in the securities of the Juniper Income Fund and the Juniper Equity Growth Fund, giving the commission time to continue its investigation and interview Juniper president, Roy Brown.

Juniper Fund Management Corporation bank accounts and Brown’s bank accounts have been frozen during the course of the investigation. The fund’s assets are currently being managed by third party investment counsel, Morgan Meighen & Associates, and held by third party custodian, NBCN Inc.

The OSC has requested written submissions by May 18, providing an update on the status of the ongoing reconciliation process, an update on the appointment of an external auditor, the need to appoint an external auditor and the auditor’s role in the reconciliation process, and the need, if any to appoint a monitor. The temporary cease trade order has been extended until May 23.

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