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In a speech to the Regina and District Chamber of Commerce, Bank of Canada Governor Mark Carney explained that much hard work remains to be done before a recovery will take hold.

Amid all the talk of “green shoots” in the global economy, he likens the process of recovery to the methodical and innovative process of farming, “Saskatchewanians know that it is a long, anxious time between the appearance of seedlings and the harvest,” he said.

Focusing on the stability of the Canadian financial system, Governor Carney said that the overall level of risk to the Canadian financial system is broadly unchanged since last December. He discussed three risks to Canada’s financial stability: 1) the liquidity and funding positions of our banks, 2) the adequacy of their capital, and 3) the financial health of Canadian households.

The strong position of Canada’s banks has improved further in recent months and the balance sheets of Canadian households continue to be relatively sound. However, the global recession will mean that these reserves will be drawn upon in the months ahead.

He added that possessing one of the soundest financial system is not enough to avoid financial crisis, as the recent global financial crisis proved.

More robust core funding markets, a better bank capital regime, and measures to reduce pro-cyclicality all need to be put in place, the Governor said.

Just as farmers are constantly innovating and investing in new equipment and crop varieties, policy makers need to innovate to make our financial system more resilient and efficient.

“The Bank will continue to work with our domestic and international partners to build such a financial system,” Governor Carney said in conclusion, “so that the economic harvest in Saskatchewan and across Canada can be more consistently bountiful.”

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Dundee appoints new officers

Lucie Prescot has been named as the new vice-president and chief financial officer of Dundee Corporation. She succeeds Joanne Ferstmen who is continuing in a new role with Dundee.

Prescot has been with Dundee since 1986 and recently she was vice-president and controller.

Also, Thomas Augustinas has been appointed vice-president of Ravensden Asset Management Inc., Dundee’s registered Investment Counsel/Portfolio Manager. Augustinas jointed Dundee in 2004 and has over 15 years of international resource, commodities and corporate finance experience.

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Canaccord Adams (UK) names new president

Giles Fitzpatrick joins Canaccord Adams as president of the firm’s UK subsidiary, effective June 29, 2009.

He will focus on the equities business with sales, trading and research reporting directly to him, and will be a director of the company. He will be focused on raising Canaccord Adams’ visibility and increasing the firm’s impact within the buy-side community.

Fitzpatrick was most recently the CEO of Fox-Pitt, Kelton. Prior to this, he spent five years on the global equities management committee at ABN AMRO, first as global head of trading, and later as head of European equities.

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CSA registration reform close to final stages

The Canadian securities regulators are almost done finalizing National Instrument 31-103. This instrument aims to harmonize and streamline registration requirements of financial professionals (i.e. dealers, advisors, and fund managers).

Investment advisors can expect to see a reduction and change in the categories of registered advisors. Also, the instrument will require most advisors to register as portfolio managers, whether or not they have discretionary authority over the clients’ investment portfolio.

The instrument is expected to be published by mid July and come into effect by the end of September 2009. The timelines to meet the new registration requirements have been extended and can be found in NI 31-311.

(06/18/09)