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(May 30, 2008) Henri-Paul Rousseau, president and CEO of Caisse de dépôt et placement du Québec, announced Friday that he was leaving the organization.

Rousseau, who has been with the Caisse since September 1, 2002, will join both Power Corporation and Power Financial on January 1, 2009. According to a release by Power, Rousseau will be nominated for election to the boards of both corporations as vice-chairman at the next annual meeting of the corporations, planned for May 2009.

His last day as the Caisse CEO will be August 31 — he’ll remain as an advisor to the board for the next three months as the company makes the transition to a new president.

For now Richard Guay, the Caisse’s CIO, will take over until a new chief executive is found.

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Montreal Climate Exchange launches new futures contract

(May 30, 2008) On Friday, the Montreal Climate Exchange launched trading of a new futures contract on Canada carbon dioxide equivalent units.

Luc Bertrand, president and CEO of MX, says the listing of the MCeX futures contract makes the exchange the “first regulated environmental market in Canada.”

He adds that this is the first step in constructing environmental markets in Canada and getting investors involved. “Our goal is to position MCeX as a leading developer of market solutions that help industry reduce greenhouse gas emissions as efficiently as possible,” he says.

The futures contract is set up to assist industrial participants in managing their emissions risks at the lowest cost, while, at the same time, developing continuous incentives for technological innovations that reduce greenhouse gas emissions.

Bertrand expects large regulated emitters, investors in voluntary emissions reduction projects, financial institutions, institutional investors, hedge funds and insurance companies will all participate in the exchange.

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Canadians help draft IOSCO reports

(May 30, 2008) The International Organization of Securities Commissions (IOSCO), wrapped up three days of discussions on Thursday at their annual conference in Paris.

During the event, the Ontario Securities Commission and Quebec’s Autorité des Marchés Financiers, helped draft two reports — one on the credit market crisis, the other on credit rating agencies.

The first report identified failings in structured finance products; the second implements changes to the IOSCO Code of Conduct Fundamentals for CRAs.

The Canadian Securities Administrators said it will consider the reports if it develops any recommendations for changes to the Canadian securities regulatory programs as a result of the credit crisis.

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Buyout investors helping economy: CVCA

(May 30, 2008) Canada’s Venture Capital and Private Equity Association released a report recently that focused on buyout investors and their contribution to Canada’s current and future prosperity.

The survey found that buyout investors contributed between $25 billion and $30 billion in value to the Canadian economy, and created 114,000 jobs.

It also found that private equity was driving corporate innovation and productivity, which translated into high values and corporate tax revenues and benefits for investors and pensioners.

The report reveals that Canadian buyout firms have been substantially more active in buying American companies than the other way around. Between 2002 and 2006, Canadian buyout firms executed deals worth three times the value of U.S. buyouts of Canadian firms.

“This report gives a clear picture of how Canada’s private equity industry has grown and helped fuel Canada’s economic prosperity,” says Rick Nathan, president of the CVCA and managing director of Kensington Capital Partners Limited. “What is evident from the report is that the combination of superior business strategies that challenge conventional wisdom, active corporate governance that puts a focus on strategy and the willingness to assume risk are critical to a competitive and innovative economy in the modern business environment.”

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OSC releases continuous disclosure report

(May 30, 2008) The Ontario Securities Commission published Staff Notice 81-709 Report on Staff’s Continuous Disclosure Review of Investment Funds (2008) on Friday.

The notice summarizes the findings and comments arising from the continuous disclosure review program conducted by the Investment Funds Branch of the OSC.

OSC staff outlined a number of areas that could be improved, including the quality of management discussion, overall presentation and ongoing regulatory compliance.

More specifically, the OSC wants to emphasize that the management discussion of fund performance should have a historical and prospective analysis of the operations of the fund so investors can get a whole picture of a fund’s performance.

The notice focused on conventional mutual funds, but also provides guidance on how closed-end and exchange-traded funds can ensure their continuous disclosure is in compliance with securities legislation.

(05/30/08)