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Canada’s banking regulator should license and approve all financial instruments available to investors in the country, even if they originate in the U.S., a report recommended yesterday.

The report by two economists at the Canadian Centre for Policy Alternatives, a left-leaning think tank, advocated for a rapid creation of a single securities regulator to ensure proper monitoring of the markets and better detection of risky behaviour.

A single watchdog, replacing the 13 regional regulators now in place, is a key ambition of Minister of Finance Jim Flaherty. It would bring the shadow-banking sector under federal jurisdiction.

“The present climate of economic strain gives the finance minister his best opportunity to revise the historic error of placing money and banking under federal jurisdiction and not also including the regulation of all financial institutions, markets and instruments,” wrote economists Douglas Peters, former chief economist at Toronto-Dominion Bank, and Arthur Donner, a Toronto-based consultant.

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TD appoints new director

TD Bank Financial Group has added Carole Taylor to its board of directors.

Currently, Taylor serves as chair of the federal finance minister’s Economic Advisory Council, and she also serves as a governor of the Vancouver Board of Trade.

“As we continue to drive forward our vision of being the better bank every day, Carole’s extensive background in business and government, combined with her experience as a seasoned director, will bring strategic value to the board’s deliberations,” said John Thompson, chair of the board of TD Bank Financial Group.

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Disnat online brokerage ranked first for client satisfaction

Disnat online brokerage, a division of Desjardins Securities, has obtained the highest score for investor satisfaction among the online discount brokerage firms in Canada, according to a study by J.D. Power and Associates.

The study measured customer satisfaction in six key areas: interaction, account/information statements, trading charges and fees, account offerings, information resources and problem resolution. The discount brokerage achieved the highest overall score.

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Research Capital to distribute Pacific & Western Bank GICs

Research Capital has inked a deal with Pacific & Western Credit Corp. (PWC) to distribute the GICs of PWC’s wholly owned subsidiary, Pacific & Western Bank of Canada.

Commenting on the new partnership, David Taylor, president and CEO, said, “Research Capital is a welcome addition to our growing network of deposit agents, and we look forward to the opportunity to offer our deposit products to Research Capital’s customers. This relationship furthers our corporate strategy to diversify and expand our deposit base.”

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Commodity prices slip in July

After two consecutive monthly gains, commodity prices fell in July, dropping by 4.6% month over month, as measured by Scotiabank’s Commodity Price Index.

However, the All Items Index remains at 3.1% above the cyclical low in April, and with some G7 countries showing nascent signs of economic turnaround, commodity prices are expected to bounce back in the coming months.

Oil and gas led commodity prices lower in July (-7.5% month over month), with extensive declines in Alberta’s crude oil and Canadian natural gas export prices.

The Metals & Minerals Index also dropped by 5.2% month over month in July. Meanwhile, the Forest Product Index eased slightly by -0.3%. The Agricultural Index also retreated; it fell by 4.2% month over month in July.

In the report, Patricia Mohr, vice-president, economics, and commodity market specialist with Scotiabank, said that diversifying Alberta’s oil sand export markets to China and emerging Asia will be a key growth driver for Canada’s economy.

“Canada has the world’s second largest ‘proved’ oil reserves,” said Mohr. “As such, the Alberta oil sands represent a key ‘strong suit’ for the Canadian economy; the development of lucrative export outlets and transportation infrastructure for this resource is key to Canada’s growth prospects.”

(08/27/09)