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(May 4, 2007) The Canadian Securities Institute has announced the first graduating class of the new Ch.P. Strategic Wealth designation. The first 25 people to hold the designation were recognized at a reception at the CN Tower in Toronto on May 3.

The designation is for advisors who offer integrated wealth services, spanning investments in securities and mutual funds, to tax services and estate planning.

“The new Ch.P. Strategic Wealth program offered by CSI was designed with extensive industry input to meet market and client needs for a completely new, holistic and strategic approach to the business of managing wealth,” said Dr. Roberta Wilton, CSI president and CEO. “This approach helps clients build, sustain and transfer wealth long term, through each life stage.”

The CSI also recognized Kris Vikmanis, presenting her with an honorary Ch.P. Strategic Wealth, for her work on raising competency of financial professionals. Vikmanis is a senior vice-president and managing director at BMO Nesbitt Burns and head of the company’s retirement market.

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Flexible rate key to economic success: Dodge

(May 4, 2007) David Dodge, the governor of the Bank of Canada, says that Canada’s adherence to a flexible exchange rate has been crucial to maintaining a relatively strong Canadian economy because it allows policymakers to focus their attention on the economy rather than safeguarding the value of the dollar.

In a speech to Quebec’s Financial Markets Association (ACI) Dodge explained that a flexible exchange rate helped Canada in coping with economic shocks. He highlights that in the past, the fluctuating value of the dollar has indicated which areas of the economy need attention. Government can then decide to shift resources out of sectors with declining profitability and into sectors where profits are rising.

“Under a floating rate regime, movements in the currency help to smooth that process and to minimize the adjustments in other areas of the economy,” Dodge said.

He emphasized that Canada’s 50 years of experience with a floating rate could be instructive for emerging economies.

“A fixed exchange rate can be the right choice for economies — especially small economies — where an independent monetary policy is difficult to execute. In such a situation, the costs associated with having a flexible currency may outweigh the benefits,” Dodge said. But for many — and indeed for most large economies — a flexible exchange rate can bring important economic benefits, benefits that clearly outweigh the costs.”

He also emphasized that a floating rate is only one way to address global economic shifts. The exchange rate regime is just one part of a sound policy that should also include a commitment to low and stable inflation and a well-functioning domestic financial system.

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Accounting board seeks comment

(May 4, 2007) Canada’s Accounting Standards Board (AcSB) is calling for input on how privately owned companies should report their financial information.

Currently, private companies are subject to the same generally accepted accounting principles as all other companies in Canada.

“The fundamental premise is that ‘one size does not fit all’ when it comes to meeting the divergent needs of Canadian reporting entities,” said Paul Cherry, chair of AcSB.

The discussion paper and invitation to comment are available on the AcSB website at www.acsbcanada.org.

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(05/04/07)