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(February 16, 2007) TSX Group CEO Richard Nesbitt has praised the finance ministers and bank governors of the G7 for agreeing to consider free trade in securities, based on mutual recognition of regulatory regimes.

Nesbitt singles out Canadian Finance Minister Jim Flaherty for getting the ball rolling on free trade since it was Flaherty who first raised G7 consideration of the issue in a letter to U.S. Treasury Secretary Henry Paulson.

Until the G7 meeting in Essen, Germany, last weekend, the U.S. had been a strong opponent of recognizing other countries’ regulations, despite very similar standards. TSX said the U.S. has insisted that those seeking access to U.S. markets and seeking to serve U.S. investors be subject to U.S. regulations, meaning that Canadian and other companies from the G7 face a second layer of regulation when they want to start U.S. operations.

“This has created an uneven playing field for the Canadian securities industry because Canadians have relatively easy access to the U.S. market, albeit at unnecessarily high costs. But U.S. investors have far greater difficulty using Canadian brokers and accessing the Canadian market,” Nesbitt said. “Allowing U.S. exchanges, brokers and other market participants to operate freely in Canada under U.S. rules while allowing Canadians to operate freely in the U.S. under Canadian rules would help level this playing field.”

Nesbitt has been a strong proponent of free trade in securities since he became CEO of TSX Group two years ago. He has made free-trade proposals to the U.S. Chamber of Commerce in Washington and in private meetings with U.S. administration officials, including those from the U.S. Treasury, the U.S. SEC and the U.S. Council of Economic Advisers.

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Euston Capital found guilty in illegal distribution

(February 16, 2007) The Alberta Securities Commission has found that Euston Capital Corp. was involved in the illegal distribution of securities.

The ASC ruled that Euston’s president and director George Schwartz and various sales team members — Harry Gray, Bill Tevruchte, Carlos Carvao, Brent Madinger, Peter Robinson and Jackie Thomas — all engaged in illegal trades and distributions in contravention of the Securities Act.

In its decision, the ASC panel found that, except for Carvao, the Euston sales team made misrepresentations or prohibited representations to investors.

The ASC will schedule a hearing to consider sanctions.

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Scotiabank buys 10% stake in Puerto Rican bank

(February 16, 2007) Scotiabank has announced a transaction to acquire a 10% stake in Puerto Rico’s First Bancorp. Scotiabank has offered to purchase about 9.25 million First Bancorp shares for approximately $94 million US.

Based in San Juan, Puerto Rico, First Bancorp is the second-largest financial holding company in the Commonwealth and the 59th-largest bank holding company in the U.S. with about 2,800 employees and total assets of $17.4 billion US.

Scotiabank has been in the Caribbean since 1889 and in Puerto Rico since 1910. The company said that its new stake in First Bancorp further solidifies its position as the region’s leading bank.

“We have been part of the Puerto Rican market for nearly 100 years, and this represents an immediate, increased investment and an opportunity to benefit from future growth in the Puerto Rico market,” said Rob Pitfield, executive vice-president, international banking, Scotiabank. “Scotiabank has always looked beyond Canada’s borders for new opportunities and in this case, we are making an investment in First Bancorp.”

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Ontario CAs offer free tax advice to low-income earners

(February 16, 2007) The Institute of Chartered Accountants of Ontario will offer free tax clinics again this year at various times and locations across the province.

The clinics are designed to serve low-income people who need help preparing tax returns. Ideally, the clinics will help these people receive much-needed tax credits and refunds. The program is a partnership between over 200 community service groups that host the clinics and more than 1,400 volunteer chartered accountants and CA students, who complete the returns free of charge.

“The Institute of Chartered Accountants of Ontario has been coordinating this valuable program since 1969,” said Donna Genova, associate director, member services at the Institute. “Our members find it gratifying to be able to give something back to the communities where they live and work.”

Those with total annual household incomes of up to $22,500 with dependents, or $15,000 with no dependents, are eligible to attend the clinics, which will run across the province between February 19 and March 31, 2007.

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(02/16/07)