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Mackenzie Financial has introduced three new mutual funds available for purchase today, including one income-focused class, a sector neutral Canadian equity fund and an all-Canadian dividend class.

The Mackenzie Sentinel Strategic Income Class is managed by Dan Bastasic, vice-president, investments. The fund will be invested in dividend-paying equities, income trusts, corporate bonds, convertible bonds and government bonds with no asset allocation or geographic constraints.

Investors can choose between Series T6 or T8, which provide monthly distributions at a rate of 6% per year or 8% per year, generally in the form of tax-efficient return of capital.

The Mackenzie All-Sector Canadian Equity Fund seeks long-term growth by investing in Canadian companies, and aims to follow the sector allocations of the S&P/TSX Capped Composite Index to neutralize sector risk.

“With this fund, investors will participate in general directional market movements and receive the benefit of active management, as the portfolio manager will select the stocks they feel have the potential to outperform in each sector,” said David Feather, president of Mackenzie Financial Services Inc.

The Mackenzie Maxxum All-Canadian Dividend Class seeks capital growth and dividend yield, investing primarily in common and preferred shares of Canadian companies.

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MFDA goes easy on will forger

The MFDA has reached a settlement with William Todd Gillick, after he admitted that he betrayed the trust of clients, forging their signatures on wills and swearing a false affidavit of execution.

“There is no more solemn document in our society than a will and his misdeeds in that connection are very serious indeed,” the MFDA said in its reasons for decision. “It was said that no-one suffered financially and that Mr. Gillick received no financial benefit from his actions. While that is fortunate, it is beside the point.”

Gillick’s admission of wrongdoing has saved him some grief, as the MFDA has levied a fine of $20,000, despite the minimum fine being set at $25,000 in its own penalty guidelines. He has been suspended for nine months, rather than the prescribed permanent ban. Gillick has not been in the industry since December 2007.

“At the end of the day, we are persuaded that he should be given a second chance in part because his record in the industry, to this point, has been without fault,” the MFDA wrote. “We wish to emphasize, however, that we consider the penalty agreed to by the parties to be at the very lowest end of the acceptable range.”

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IIROC bans Kelowna advisor

The Investment Industry Regulatory Organization of Canada (IIROC) has issued a finding against David Kenneth Smith, of Kelowna, B.C., fining him $50,000.

Smith has also been charged $4,329 in costs and been permanently banned from registration with IIROC.

An IIROC investigation was opened on July 31, 2008, following two client complaints regarding unsuitable investments Smith had made on their behalf. His failure to attend IIROC hearings or cooperate with the investigation were noted by the regulator.

He is no longer registered in any capacity with an IIROC-regulated firm.

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BMO buys U.S. securities lending firm

BMO Capital Markets has agreed to acquire the global securities lending team of Connecticut-based Paloma Securities, and acquire assets used in its securities lending business.

“Expanding our securities lending operation fits with our strategy of disciplined growth that focuses on our core clients,” said Tom Milroy, CEO, BMO Capital Markets. “The addition of this lending team from Paloma Securities complements our existing capability in North America and provides us with a platform to build on for future opportunities in the United States and internationally.”

Paloma Securities has offices in Greenwich, New York, Seattle, London and Melbourne, Australia. Paloma Securities is a subsidiary of the Paloma Funds.

The transaction, which is subject to regulatory approval, is expected to close in mid-December. The terms of the deal are not being disclosed.

(11/17/09)