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Canada has nudged out the U.S. in terms of being a cost competitive business location, according to KPMG’s Competitive Alternatives 2010 study. The last time the study was conducted, in 2008, the two countries were virtually tied. Canada now holds a 5% cost advantage.

The study examined 10 jurisdictions in North America, Europe and Asia Pacific, with Mexico taking top honours. Canada placed second, followed by the Netherlands, Australia and the United Kingdom.

The U.S. took the number 8 spot, having fallen from third place in 2008.

Canada benefited from tax cuts and reforms, as well as an easing exchange rate with the U.S. While Canada was near parity at the time of the study this year, it was trading above the U.S. dollar in 2008.

“With the Canadian dollar at USD$0.94, it is very positive for Canada to demonstrate this cost advantage over the United States,” says Simon Harding, associate partner in KPMG’s advisory services practice and head of its strategic and commercial intelligence practice. “Ten years ago, we estimated that the break-even exchange rate for the two countries was about USD$0.80, yet a number of structural changes through the 2000s have allowed Canada to maintain a cost advantage over the U.S., even in this high-dollar environment.”

The study also ranked 41 cities with populations more than two million. On a global basis, Montreal placed third, with Vancouver ranking fifth and Toronto sixth. Only one other city located in the G7 placed as highly, with Manchester ranking fourth.

To access the full report, click here.

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RBC offers phone service in Cree, Inuktitut

RBC has launched a program to provide services in two of Canada’s most widely spoken indigenous languages — Cree and Inuktitut — via its multi-language telephone banking service.

“Access to banking services plays an important role in the creation of wealth and economic sustainability in Aboriginal communities,” said Phil Fontaine, former National Chief of the Assembly of First Nations and special advisor to RBC.

“Cree is spoken by approximately 117,000 people and there are roughly 35,000 Canadians who speak Inuktitut, making them two of the most common indigenous languages spoken across the country,” Fontaine continued. “The fact that RBC is providing services in these languages is a testament to its deep understanding of the unique needs of the Aboriginal market it serves.”

RBC is the first Canadian financial institution to offer telephone services in these languages.

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GrowthWorks fund revises prospectus

GrowthWorks Capital has announced that its Working Opportunity Fund has implemented revised investment allocation rules for its Commercialization Series of Class A Shares, having received shareholder approval.

The revised rules provide for earlier pooling of investments, which should allow for greater diversification among the Commercialization Series and lowering the overall risk profile. All previously offered Commercialization Series now participate in a single, pooled venture investment portfolio.

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MFDA disciplines Paul Anthony Henry

The Mutual Fund Dealers Association of Canada (MFDA) has announced its penalty for mutual fund salesperson Paul Anthony Henry for mishandling clients’ money between 2006 and 2007, among other questionable conduct.

Henry will be suspended for two years, effective immediately. He will also have to pay a fine of $10,000 and pay costs of $2,500. In order to return to the mutual fund industry, Henry will have to complete the IFSE (IFIC) Mutual Fund Dealer Compliance Course.

For more information, visit www.mfda.ca.

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MFDA announces hearing dates for Carmen Moerike

The Mutual Fund Dealers Association of Canada (MFDA) has set May 27 and 28 as the dates for a disciplinary hearing against Carmen Moerike.

The hearing is slated to begin at 10 a.m. on both days and will be located in the hearing room of the Delta Hotel Regina in Regina, Saskatchewan.

For more information, visit www.mfda.ca.

(03/30/10)