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As part of Bank of America Merrill Lynch’s plan to expand its corporate banking business in Canada, the firm has hired Chris Impey as head and Daljeet Lamba as managing director of Canada corporate banking.

“This is an exciting growth area for our business in Canada, and Chris’s and Daljeet’s local expertise and extensive client relationship management skills will be invaluable in building out our platform and presence in the region,” said Dan Mida, head of Canada corporate and investment Banking.

Prior to joining Bank of America Merrill Lynch, Impey was managing director responsible for Canadian corporate clients at Citigroup; while Lamba was director, global banking, with Citigroup in Toronto.

Lamba joined the firm this summer; Impey is expected to start in October 2009.

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AMF warns investors about fraudulent securities commission

The Autorité des marchés financiers (AMF) cautions investors about an organization called the International Organization of Securities Commission (IOSC), which is not to be confused with the International Organization of Securities Commissions (IOSCO) or the Organization internationale des commissions de valeurs (OICV).

Regulators believe that the IOSC is operating a fraud scheme that targets investors with shares that have dropped significantly in value. In this fraud scheme, the perpetrator offers to redeem or exchange worthless shares for a fee. Once the fee is paid, the fraudster disappears.

The IOSC website uses– without authorization — the shields of U.S. agencies such as the United States Department of Justice and the Federal Trade Commission as its logos.

The IOSC states that it is a securities regulator operating in the U.S. for the benefit of U.S. citizens, which, of course, is false.

Regulators were alerted to the site by a member of the public who stated that he had been contacted by a Swedish-speaking person who claimed to represent IOSC. The representative also claimed that IOSC was conducting an investigation into stocks sold to the public and that IOSC held reserved funds in escrow accounts on behalf of investors.

The AMF is working with other IOSCO members to identify the persons behind IOSC and determine whether Canadians have been solicited by IOSC representatives.

Members of the public who have information about IOSC are urged to contact the AMF Information Centre at 1-877-525-0337.

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Manulife faces class action suit in Quebec City

A multi-million dollar law suit has been filed in Court of Quebec against Manulife Financial.

In its complaint filed in Superior Court, the national trade union pension Bâtirente accuses Manulife and its leadership in Toronto of failing to disclose timely information related to risks associated with the company’s annuity portfolios and segregated fund contracts with guarantees.

The National Trade Union Committee Bâtirente, which is based in Quebec, said that Manulife was aware that “extreme events” such as declines in the market would have caused the deterioration of the portfolio of guaranteed products and prepared for this eventuality.

(Translation from THE CANADIAN PRESS)

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Sun Life develops new distribution channel in China

Sun Life Financial has entered into an agreement with the China Everbright Group to reposition Sun Life Everbright Life Insurance Company to capture a greater reach of customers across China.

The pair will unite to introduce strategic investors to Sun Life Everbright, which will more than double its registered capital to approximately $500 million.

Sun Life Everbright is a joint venture of Sun Life and its well-established local partner, the China Everbright Group. Sun Life Everbright offers protection and wealth products in China. The firm opened for business in 2002 in Tianjin and has offices in 18 cities.

“This strategic restructuring is in the best long-term interest of our shareholders and secures our participation in the tremendous growth and promise of China’s life insurance and broader financial services market,” said Donald A. Stewart, CEO of Sun Life Financial. “We are maintaining a meaningful, strategic interest in one of China’s top financial services companies and affirming our long-term commitment to China.”

As part of the restructuring agreement, China Everbright will become a more important marketing and distribution channel for the products and services of Sun Life Everbright.

Pending regulatory approval, Sun Life will have a 20% interest in the restructured and repositioned company.

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TMX Group appoints new executives

TMX Group has expanded its executive team to include Glenn Goucher as senior vice-president and chief clearing officer of the Canadian Derivatives Clearing Corp. (CDCC) and John McCoach as president of TSX Venture Exchange.

“Derivatives and associated clearing activities are key growth areas for TMX Group, and Glenn will help us drive this business forward both here in Canada and worldwide,” said Thomas Kloet, CEO of TMX Group.

Currently, Gloucher is the senior executive of the Montreal Exchange. He will start his new position in Aug. 24, 2009.

McCoach was senior vice-president of the TSX Venture Exchange. He starts his new position immediately.

“In his expanded role, John will be focused on seizing new opportunities for growth both in Canada and abroad as the demand for growth capital for small and medium enterprises continues to ramp up and investors seek a well-regulated market for venture investments,” said Kloet.

(07/30/09)