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(January 11, 2007) The IDA has fined Savitri Shamseer, a registered representative with Argosy Securities in Richmond Hill, Ontario, $40,000 for a pair of offences, including conducting discretionary trades in a client account without written approval.

Shamsheer also admitted that between February 2002 and December 2003, she failed to use due diligence to ensure that trades conducted in the same account were suitable based on factors such as the clients’ financial situation, investment knowledge, investment objectives and risk tolerance. Shamseer has partially compensated the client for losses.

As well as the fine, Shamsheer, who is still working at Argosy, must pay $3,000 in costs, disgorge $2,100 in commissions, work under strict supervision for 12 months and complete the Conduct and Practices Handbook exam within six months.

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Sunlife buys Genworth’s U.S. group benefits

(January 11, 2007) Sun Life Financial announced on Thursday it has reached an agreement to purchase the U.S. group benefits business of Genworth Financial for US$650 million.

Sun Life expects Genworth’s group operations to significantly enhance the company’s market share for its U.S. group lines of business. Sun Life said Genworth’s distribution network and focus on the small-case employer helps it accelerate its US growth strategy, which will position them as the second largest U.S. medical stop-loss provider.

“The group business is one of Sun Life’s core competencies and the addition of this high-quality franchise with its talented team further strengthens our competitive position in the United States,” said Donald Stewart, Sun Life’s CEO. “This acquisition solidifies Sun Life’s top ten position in the U.S. group business and demonstrates our continued delivery on key shareholder commitments.”

Genworth’s group operations, primarily offer group life, disability, stop-loss and dental insurance.

The transaction will be financed with existing capital. It is expected to close in the second quarter of 2007 pending approval from regulatory authorities in the United States and the Office of the Superintendent of Financial Institutions in Canada.

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Strong gains for hedge funds and emerging markets

(January 11, 2007) The Barclay Group reports that strong growth for the month of December helped hedge funds and emerging markets finish 2006 on a high note.

“Looking back from here, 2006 was quite a good year. But keep in mind that almost half of the year’s return came in the last quarter,” said Sol Waksman, president of the Barclay Group. “December was the month where everything went right.”

Waksman emphasized that the big gains were found in Emerging Markets. “Emerging markets had a phenomenal year in 2006,” he said. “The MSCI BRIC Index increased by 47.69%, as China soared 78.67%, Russia gained 52.11%, and India added 46.47%. Brazil was the laggard with a gain of 28.46% for the year.”

Waksman points out hedge funds in general were no slouch either, posting their best performance since 2003, growing 9.28%. Barclay reports that only one fund sector lost money in 2006 — the equity short bias group was down 5.24%.

The Barclay Hedge Fund Index gained 1.56% in December and was up 12.35% for the year. Barclay’s Emerging Markets Index jumped 3.57%, to finish with a yearly gain of 22.02% for 2006.

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More than 400 students pass latest CFP exam

(January 11, 2007) The Financial Planners Standards Council released the CFP exam results on Thursday. Of the 963 individuals that wrote the November exam, 43.1% passed. The six-hour CFP examination is administered in both official languages twice a year. The list of the 415 CFP candidates who passed appears in Thursday’s Globe and Mail.

The November examination was held in more than 50 centres across Canada. Topics covered reflect the knowledge, skills and professional competence required in the current practice of financial planning as established by CFP professionals and academics from across the country.

The next scheduled CFP Examination is on Saturday, June 9, 2007. Registration closes on May 9, 2007. Examination information and applications are available at www.cfp-ca.org.

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Former OSC chair joins Q4 Web Systems

(January 11, 2007) The former chair of the Ontario Securities Commission, David Brown, has joined the advisory board of Q4 Web Systems, which operates an online system that helps public companies comply with security laws.

Q4 expects Brown to play a pivotal role in helping North American companies identify and fix potential problems with their websites that may put them at risk of violating regional security laws, ranging from Sarbanes Oxley in the US and Ontario’s Bill 198.

“What makes Q4 Web Systems a world leader,” Brown said, “is that they are first to market with a software solution that tracks and records everything that appears on a corporate website in real time, and does so in a way that is simple and easy to use.”

Q4 Web Systems CEO, Derrell Heaps thinks the match-up will give his company increased credibility in the marketplace. “When it comes to disclosure, compliance and securities legislation, David Brown is a respected international authority,” Heaps said. “David Brown joining Q4 Web Systems — a firm that helps public companies comply with the very securities laws and best practices he helped shape — is the kind of confidence-inspiring move that capital markets notice.”

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