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(January 29, 2007) Minister of Finance Jim Flaherty released draft legislation, explanatory notes and a backgrounder for several measures aimed at improving the application of the goods and services tax/harmonized sales tax to the financial services sector.

The proposed new framework for the GST/HST input tax credit allocation for financial institutions is intended to reduce uncertainty from the lack of specifics in current legislation by streamlining the application of the GST/HST rules.

Flaherty also announced the ministry would consult stakeholders regarding some of the proposals, which include a new GST/HST annual information schedule for financial institutions to improve GST/HST reporting in the sector and replacing the complex system of legislative and administrative rules that govern different pension plan trust structures with a uniform GST/HST rebate system that will apply fairly to all.

“The financial services sector is a key element of the Canadian economy. Ensuring that the tax system functions smoothly and fairly in relation to it will support its continued success both at home and abroad. This ultimately benefits consumers and the Canadian economy,” Flaherty said.

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AMF takes legal action

(January 29, 2007) Quebec’s securities regulator, the AMF, has initiated court proceedings against Le Garant Consultant Inc., claiming the company illegally distributed insurance products without proper regulatory accreditation. The AMF is seeking a penalty of $17,000.

In an unrelated press release, the AMF also announced it was pursuing legal action against Claude Plouffe, of Laval, for acting as insurance broker without proper AMF accreditation. The AMF is seeking a fine of $8,760.

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Claymore names new managing director

(January 29, 2007) Grahame Lyons has joined Claymore Investments Inc. as managing director.

A 19-year veteran in Canada’s financial services industry, Lyons was most recently principal of Barclays Global Investors Canada and was responsible for iShares’ ETF business development in Western Canada.

Claymore said Lyons has garnered a reputation as a trusted market resource, particularly on ETFs, and has regularly appeared on various cable television programs, radio stations, and been quoted in regional newspapers.

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(01/29/07)