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(September 7, 2007) The IDA has suspended Johanne Pinet of Laval, Quebec, for one year, after she was found guilty of misappropriating funds.

Between October 18, 2005, and November 18, 2005, Pinet misappropriated funds from her half-brother, a client of National Bank Financial Inc., where she worked, in the amount of $1,120, via eight withdrawals.

Pinet had used the funds to pay off personal debts, and returned the full amount to the account before being asked to. All the same, an IDA hearing panel deemed this to be conduct unbecoming and detrimental to the public interest, contrary to bylaw 29.1.

The IDA cited Pinet’s otherwise clean record and her co-operation with the investigator in issuing the suspension. She was fired from National Bank and must pay $4,000 in costs to the IDA within 24 months.

“Considering that her income was minimal, imposing a hefty fine on her would be equivalent to imposing a permanent bar from approval,” the IDA said in a release.

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Arrow offers two new hedge funds

(September 7, 2007) Arrow Hedge Partners has launched two new Canadian-based long/short funds, the Arrow Roundtable Fund and the JC Clark Opportunities Fund, which are focused on the small- and mid-cap market.

“The opportunity for extraordinary gains in the Canadian market arises from several factors, including the relatively light analytical coverage of small- and mid-cap stocks relative to larger-cap stocks,” says Mark Purdy, CIO of Arrow Hedge in Toronto.

Investing in a concentrated portfolio of stocks, the fund managed by Roundtable includes a long bias and limited use of leverage. The fund managed by JC Clark will also invest in a concentrated portfolio, but has a “variable bias” toward long and short positions.

“These two managers are amongst the most talented managers of their types in Canada,” says Jim McGovern, Arrow’s CEO. “We’re proud to represent the two complementary approaches in our efforts to bring the unique opportunity set of the non–large-cap Canadian market to our investors.”

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Saxon links PPNs to flagship funds

(September 7, 2007) Saxon Financial has launched principal-protected notes linked to the Saxon Stock Fund, with the guarantee provided by BMO Financial.

The BMO Saxon Canadian Equity Protected Deposit Notes, Total Return Class, offer up to 200% exposure to returns from Saxon Stock Fund and 100% principal protection at maturity.

The terms of the deposit notes are seven years, with multiple series available for 2007 and 2008.

The firm also announced the launch of a series of notes linked to the performance of its Saxon Balanced fund. The BMO Saxon Balanced Protected Deposit Notes have a 5.5-year term to maturity, provide 100% principal protection at maturity and up to 200% exposure.

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HSBC woos mass affluent

(September 7, 2007) HSBC has announced what it is calling the first “truly global personal banking service” aimed at the mass affluent, which is being rolled out simultaneously in 35 countries in North America, Europe, the Middle East and the Far East.

HSBC Premier allows customers access to the same set of services in all 35 jurisdictions, with 250 “Premier Centres” located in major cities.

“We estimate there are around 200 million mass affluent consumers in the world today, and that number is growing rapidly, by as much as 20% a year,” explains Michael Geoghegan, group CEO of HSBC.

To qualify, clients need to maintain $150,000 CDN in personal deposit and investment balances or $350,000 CDN in personal deposit, investment and credit balances. HSBC defines the mass affluent as those consumers with liquid assets of between $100,000 US and $2 million US.

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Loring Ward names new CFO

(September 7, 2007) Loring Ward International has named a successor to outgoing chief financial officer Jerry Melia. Effective November 1, Robert J. Badolato will assume the post.

“Bob’s significant industry experience and expertise, along with the outstanding results he has delivered since joining Loring Ward, make him an ideal fit for this position,” said Robert P. Herrmann, CEO of Loring Ward. “I look forward to working closely with him as we continue to manage and grow the business.”

Badolato joined Loring Ward in June 2006 as corporate controller, before which he was chief accounting officer for TD Waterhouse Group.

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ING names new president, CEO

(September 7, 2007) ING Canada has named Charles Brindamour as successor to outgoing president and CEO Claude Dussault. The transition will be effective January 1, 2008.

Brindamour joined ING in 1992, held a number of executive positions both in Canada and in Europe, and has been COO of ING Canada since January 2007.

Dussault has been elected chairman of the bank’s board, replacing Yves Brouillette, who has been chairman since April 2002. Brouillette will remain a director and will continue to play an active role in a number of the board committees.

(09/07/07)