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(March 21, 2007) Canada’s status as one of the most business-friendly countries in the world might be in jeopardy, according to a new Economist Intelligence Unit research paper sponsored by Accenture. The EIU is affiliated with the magazine The Economist.

According to the study’s findings, Canada’s business environment will improve only slightly in the years ahead, providing other countries with the opportunity to catch up.

Only two years ago, Canada’s business environment was rated the best in the world, the EIU said. Now it ranks third, behind Denmark and Singapore, albeit ahead of the fifth-place United States.

The EIU said that Canada’s ranking is unlikely to change much over the next five years because of the country’s complex federal system of governance.

The federal system has led to three key problem areas for Canada: its ability to implement policy, high corporate taxation and a potential shortage of skilled labour.

The EIU points out that in terms of political effectiveness, Canada slipped to 15th among the 60 countries surveyed — better only than Japan and Italy among the G7 nations. This is largely due to internal trade barriers between the provinces.

Companies in Canada face a significant tax burden, shouldering a higher share of government tax revenue than businesses in most other countries..

The EIU also expects that short-term shortages of highly educated and skilled labour will contribute to a deterioration of the labour environment over the next five years.

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Franklin Templeton proposes fund merger

(March 21, 2007) Franklin Templeton Investments announced Tuesday a proposed merger of the Bissett Income Trust Fund into the Bissett Income Fund, which will be voted on at a special meeting of unitholders on June 1, 2007, in Toronto.

The proposal is subject to regulatory approval, but Franklin Templeton hopes the merger will take effect as of the close of business on June 8, 2007.

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MFDA releases penalty information on two separate cases

(March 21, 2007) On Tuesday, the Mutual Fund Dealers Association of Canada issued two updates on recent hearing decisions.

The first regarded the reasons for the disciplinary action taken against Donald Kenneth Coatsworth. As reported on February 1, Coatsworth was hit with a lifetime ban and fined $60,000.

The MFDA said in its release that Coatsworth was found to have done business on the side, apart from the member firm for which he worked, which merited a fine of $10,000. The bulk of the financial penalty, $50,000, was issued as a result of Coatsworth’s lack of cooperation with the MFDA investigation into his activities. Coatsworth failed to provide records and bookkeeping relevant to his unauthorized dealings.

The MFDA also released the penalties it has imposed on Joseph Zollo.

Zollo has been suspended from conducting securities-related business for a period of three years and six months. If after that period Zollo decides to resume selling mutual funds, the MFDA said, he will have to be closely monitored for an additional year and a half.

The MFDA did not give specific reasons for the actions taken against Zollo, but a February notice of hearing stated that he had been accused of acting contrary to the Securities Act of Ontario and with having unauthorized personal financial dealings with clients.

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(03/21/07)