Briefly:

Previous Brieflies this week: | MON | TUE | WED | THU |

The Canadian Securities Administrators has released a staff notice reminding advisors and dealers of their duty to satisfy suitability obligations.

Staff Notice 33-315, Suitability Obligation and Know Your Product, published today, points out that anyone advising clients or selling securities must not only know their client, but must know their product.

“Both individual representatives and firms owe a duty to their clients to ensure the suitability of investments and we expect dealers and advisors to carefully consider product attributes and the investment objectives of their client before recommending any product,” said Jean St-Gelais, CSA chair and president and CEO of the Autorité des marchés financiers. “Any registrant that does not meet these obligations is in breach of securities law.”

Understanding the investment product includes knowing the costs, risk and financial position of the issuer. The Canadian regulators require that advisors and dealers explain the risks of the product to their client and why it is suitable.

The regulators are also pushing firms to implement a product review process to evaluate new products and monitor existing ones.

• • •

BetaPro implements roll methodology for two commodity ETFs

BetaPro Management Inc. will be changing to the roll methodology for the HBP Natural Gas Bull +ETF and the HBP Natural Gas Bear + ETF, effective Sept. 8, 2009.

Futures contracts that are not rolled from one delivery month to another will require that the holder accept delivery of a physical commodity on maturity.

In order to roll, the HBP Natural Gas Bull+ ETF and HBP Natural Gas Bear+ ETF will refer to a primary futures contract and a secondary futures contract in different weighting over the period of time the roll is implemented. As contracts reach that delivery date at the end of the month, the secondary contract for a subsequent delivery month becomes the primary futures contract.

Both commodity funds seek investment results, net of sales expenses, that correspond to two times (200% HBP Bull), or negative two times (-200% HBP Bear), the daily performance of the (NYMEX) natural gas futures contract for the next delivery month.

• • •

RBC appoints Fontaine as special advisor

Phil Fontaine, the former National Chief of Assembly of First Nations (AFN), has signed on with RBC as special advisor on aboriginal relationships.

Fontaine will provide advice and counsel to help the bank deepen its relationships with Aboriginal governments, communities and businesses in Canada.

Gord Nixon, RBC president and CEO, said that Fontaine’s extensive work with First Nations communities will be instrumental in building the service to the Aboriginal community.

“RBC is a leader in building relationships with Aboriginal peoples and I’m pleased to join RBC as it continues working for the benefit of First Nations, Métis and Inuit peoples, helping them increase opportunities for economic development,” Fontaine said.

• • •

The Co-operators completes buy of VSIL

The Federated Agencies Limited, a subsidiary of The Co-operators, has completed its purchase of Vancity Insurance Services Ltd. (VSIL).

The purchase will significantly increase The Co-operator’s presence in British Columbia. All VSIL service locations are already operating under The Co-operators’ brand.

Vancity will continue to offer life, creditor and title insurance as part of its overall financial services offering.

Squamish Insurance Services is not part of the purchase agreement and will continue operations as usual.

VSIL customers will not experience any changes to their insurance policy as a result of the acquisition.

• • •

Debt collection leads top five list

During the second quarter of 2009, debt collection was the most requested service by customers of Pre-Paid Legal Services, an Oklahoma-based service with members across the U.S. and four provinces in Canada.

Between April and June 2009, the top service requested included requests for debt collection (46,073), foreclosure/eviction (36,179), family law (38,325), bankruptcy (14,980) and employment issues (26,461).

Harlad C. Stonecipher, founder and CEO of Pre-Paid Legal Services, says that these figures show the effect of economic hardship.

The PPD “Top Five List” is based on the total volume of member requests for service submitted to the network of 53 independent provider law firms.

• • •

Manulife Singapore farms out fund valuation to RBC

RBC Dexia Investor Services has been selected by Manulife (Singapore) Ltd. to handle the fund valuation for 42 investment linked portfolios, consisting primarily of fund-of-funds structures.

This mandate further strengthens RBC Dexia’s position in Singapore and enhances its reputation as a reliable and effective partner for companies looking to review their back and middle office requirements in an environment where cost and process efficiencies have come to the fore.

Scott McLaren, head of sales and distribution for Asia Pacific at RBC Dexia said that increasingly more asset gatherers are looking for outside help to maintain operational efficiency issues and address unique needs.

“By listening to Manulife, we were able to ensure we understood these important issues and we look forward to working with them” said McLaren.

(09/02/09)