Briefly:

Previously: | MON | TUE | WED | THU |

Most of the time, it feels like the advisory channel is the only segment of the financial services industry under scrutiny. But take heart, the Investment Industry Regulatory Organization of Canada has announced a hearing into activities of online discount brokerage Questrade.

The hearing stems from allegations that, from December 2006 to the present, the brokerage advertised margin rates below those prescribed by IIROC and its predecessor, the IDA. To make matters worse, the regulator had advised the firm not to do so beforehand.

Over the same period, Questrade failed to obtain required margin from its clients as required by IDA By-law 17.11 and outlined in IIROC Dealer Member Rule 17.11. Again, regulatory staff had advised the firm ensure clients had sufficient margin.

The IDA initiated the investigation into Questrade’s conduct on May 14, 2007. The Respondent is currently an IIROC-regulated firm.

A hearing will be held on Tuesday, April 28, 2009 at Legal Transcript Services, located at 390 Bay Street, 11th Floor, Suite 1102, Toronto, ON at 10:00 a.m.

• • •

China aims for 2010 recovery

The Chinese economy will recover from its recession in 2010, restarting its long march toward prosperity, according to a survey of chief marketing officers. Seventy-five percent of those surveyed said next year would be the start of the recovery.

In the meantime, though, the marketing heads said they were under pressure to reduce their costs, resulting in reduced sponsorships and events. As a result, they are increasingly turning to digital media and in-store advertising.

The survey was commissioned by The Marketing Group of China, and was conducted by market research firm Millward Brown-ACSR, and global communications agency, Hill & Knowlton.

“Our survey shows that whilst marketing cuts are hard to avoid in the current climate, firms need to be aware that lowering the priority placed on getting their message across could have damaging consequences in the long term,” said David Zhao, managing director of leading communication consulting firm Hill & Knowlton’s Shanghai office.

• • •

Mackenzie streamlines shelf

Mackenzie Financial has proposed changes to its mutual fund lineup, citing fee reduction, tax efficiency and better prospects for investor returns.

The company proposes eliminating seven of its funds by merging their assets with similar portfolios. These include:

• Mackenzie Universal Canadian Value, into Mackenzie Universal Canadian Value Class • Mackenzie Universal Global Property Income, into Mackenzie Universal World Real Estate Class • Mackenzie Putnam Global Equity, into Mackenzie Ivy Foreign Equity Class • Keystone Saxon Smaller Companies, into Saxon Small Cap • Keystone Sceptre Canadian Large Cap, into Mackenzie Maxxum Canadian Equity Growth • Keystone Sceptre Canadian Small Cap, into Mackenzie Ivy Enterprise; and • Keystone Bissett Canadian Equity, into Saxon Stock

Special meetings will be held June 1, 2009, for investors of the merging funds to consider and vote on the proposed mergers. Fees will either be unchanged or lower for investors.

Mackenzie has also announced plans to change sub-advisors on three portfolios, effective April 30, 2009. Mackenzie Universal World Science & Technology Class will be managed by Mackenzie senior vice-president, Ian Ainsworth.

Mackenzie Cundill Investment Management will be appointed sub-advisor of Keystone Templeton International Stock Class and that fund will be renamed Keystone Cundill International Value Class.

The multi-manager Symmetry Equity Class and Symmetry Registered Fixed Income Pool will both see changes in their sub-advisors, with Mackenzie Cundill assuming an international value oriented equity mandate. Howson Tattersall Investment Counsel will be appointed sub-advisor within the Canadian equity and small-cap equity segments of the fund.

The Symmetry Registered Fixed Income Pool is being reallocated amongst existing sub-advisors Goodman & Co. and Mackenzie Investments.

• • •

Rogers Associate Financial Partners names new director

Rogers Associate Financial Partners has appointed Christian Camus, PhD. as a director of the firm, subject to regulatory approval.

Camus fills the vacancy created by the resignation of Deborah Atten.

(04/03/09)