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The Investment Industry Regulatory Organization of Canada has announced the implementation of its new complaint handling standards for member firms, which come into effect February 1, 2010.

Under the new standards, IIROC-regulated firms must meet tighter timelines for acknowledgement, investigation and response to client complaints.

Under the new standards the firm has five business days to acknowledge receipt of the client’s complaint. The firm must investigate the complaint and provide its response to the client within 90 calendar days. When firms are unable to respond within 90 days, they are expected to explain the reason for the delay to the client and to IIROC.

“These complaint handling standards are an important step forward in our ongoing efforts to adopt best practices that promote fair and timely resolution of client complaints,” said IIROC president and CEO Susan Wolburgh Jenah. “Clear and consistent standards for the handling of client complaints will enhance investor confidence in the fairness of the financial services industry.”

The new complaint handling standards were approved by the Canadian Securities Administrators on December 18, 2009. Further guidance can be found on the IIROC website.

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CLHIA applauds herpes decision

The life and health insurance industry has applauded a Supreme Court of Canada decision in the Co-operators Life Insurance Company vs. Gibbens case.

The Supreme Court ruled unanimously that a man left paralyzed by a severe case of herpes had not suffered “an accident” when he contracted the disease. The ruling overturned an earlier decision to award Gibbens $200,000.

“This outcome ensures that Canadians will continue to have access to affordable accident insurance,” said Frank Swedlove, president of the Canadian Life and Health Insurance Association (CLHIA), which was granted intervener status in the hearing.

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Mackenzie to streamline Ivy Canadian fund

Mackenzie Financial is seeking unitholder approval to reorganize the Mackenzie Ivy Canadian Fund to eliminate its Hedged Class and Unhedged Class. The hedged units will be redesignated as units of the Fund without a Class distinction.

The fund will also be permitted to use derivatives to hedge currency risks. If approved, the changes are expected to be effective on or after April 1, 2010.

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Manulife kills four funds

Manulife Mutual Funds has streamlined its mutual fund offering, killing off four funds effective December 18. The terminated funds are:

• Value Leaders Maximum Growth Portfolio • AIC American Advantage Corporate Class • AIC Global Advantage Corporate Class • AIC Global Premium Dividend Income Corporate Class

“The termination of these four funds will allow Manulife Mutual Funds to concentrate resources in other mandates that will better serve the interests of our investors,” said Jeff Ray, assistant vice-president, mutual fund products at Manulife. “The decision to terminate the four funds was based on streamlining the product offering and reducing costs associated with managing smaller funds.”

(12/21/09)