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(August 7, 2008) American consumer confidence has slowed its decline, according to the latest reading of the RBC CASH (Consumer Attitudes and Spending by Household) Index.

Overall consumer confidence rose 19.2 points, to a reading of 33.8. The July measurement of 14.6 had marked the all-time low for the index since it was launched in 2002.

“Consumer sentiment bounced back due to a moderation in the prices of gasoline and oil as well as a modest rebound in the equity markets,” said T.J. Marta, economic and fixed income strategist for RBC Capital Markets. “However, the ongoing decline in house prices, continued tight credit conditions and soft jobs market indicate that while sentiment might be in the process of bottoming at a very depressed level, it has not likely begun an upward trend.”

The index measures consumers’ sentiment on the current and future state of their local economy, personal financial situation and confidence in making a large investment.

The index saw a jump of 50 points in sentiment regarding Americans’ personal expectations, but it’s still in negative territory for the eighth straight month, at -4.7.

This month 29% of consumers believe their personal financial situation will be stronger half a year down the road, up from 25% in July. At the same time, however, expectations for their local economy sagged, with 26% expecting it to weaken, compared to 23% in July.

Attitudes toward stock and real estate investment improved, with 28% of respondents saying the next 30 days would likely be a good time to get into the stock market, and 41% saying the real estate market would be a good place to invest in the coming month.

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MFDA settles with Sullivan

(August 7, 2008) The Mutual Fund Dealers Association has approved a settlement with Patrick Sullivan, at all material times an advisor with IQON Financial Inc.

Sullivan is alleged to have facilitated trades in All Island Equity Mortgage Investment Corporation to clients of IQON, but not through the facilities of the firm.

Sullivan has agreed to pay a fine of $30,000 plus costs totalling $5,000.

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Rice to expand Ontario presence

(August 7, 2008) Rice Financial Group has reached a deal to purchase “certain assets” of Farm Mutual Financial Services Inc., pending regulatory approval.

The deal would see the transfer of about 40 advisors and $400 million in assets under administration to Rice Financial. These assets are largely located in Southern Ontario.

“We look forward to having this highly experienced group of advisors join the Rice Financial organization,” said Dave Velanoff, CEO of Rice Financial Group. “This pending transaction is another step toward Rice Financial’s objective to expand rapidly in the province of Ontario.”

(08/07/08)