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(May 25, 2007) Do you ever wish your clients knew more about where their group plan life insurance was being invested? Well, wish no more.

Group Retirement Services, a division of Great-West Life and its subsidiaries, London Life and Canada Life, has added a new “smart messages” feature to member statements.

“Smart messages are a risk-management tool that can help members understand how their investments are performing and increase awareness about specific aspects of the member’s plan that may require action,” says Michael Campbell, vice-president of group retirement services marketing.

As well as providing information on financial, demographic and other, more general, topics, the smart messages offer updates on such things as key stages for investing, portfolio diversification and tax receipt mailings.

“Providing customized information that speaks directly to members about their individual accounts, smart messages help members make more informed decisions about their retirement plans,” says Campbell.

The impetus behind this initiative was a 2006 industry survey that reported that plan members want help to learn how to invest their retirement savings. They also asked for clearer information on their statements.

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Middlefield rolls out two new funds

(May 25, 2007) Middlefield Mutual Funds announced Friday that it’s adding two new funds to its class family of funds. The Global Growth Class and Uranium Metals Class will join other funds in Middlefield’s offerings, such as the Equity Index Class and the Canadian Growth Class.

The front-end fund symbol for the Global Growth Class is MID 110, while the deferred is MID 120. For the Uranium Metals Class, the front-end symbol is MID 210, and the deferred is MID 220.

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Jitney Group fined $50,000

(May 25, 2007) Jitney Group, a Montreal-based online brokerage firm, is almost ready to put its regulation wranglings behind it. The company has been in hot water with the IDA recently, culminating in a $50,000 fine.

The fine was announced by the IDA Friday, after hearing panel accepted a settlement agreement between the two sides.

The trouble started when Jitney — which has admitted to breaking rules — failed to maintain a risk-adjust capital at a level greater than zero between December 31, 2002, and February 25, 2004. As a result, it was capital deficient for up to $1,877,000.

Between March 8 and April 28, 2004, Jitney failed to comply with a business restriction imposed by the IDA that forced the company to limit the size of its securities owned. Jitney sold short positions and received capital of $150,000.

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IQON Financial gets dinged by MFDA for $100,000

(May 25, 2007) On Friday, the MFDA announced that it has fined IQON Financial $100,000, plus $7,500 in costs.

The fine stems from allegations that IQON allowed an employee to participate in securities-related business outside the normal practices; the staff member had said he wouldn’t do so. The MFDA also alleges that IQON failed to follow conditions that the SRO laid out to resolve compliance deficiencies.

As part of the settlement, IQON must retain an independent monitor to look at problems in the company’s trade supervision.

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Preliminary prospectus filed by Copernican British Banks Fund

(May 25, 2007) Copernican Capital Corp., the manager of the Copernican British Banks Fund, announced Thursday that it has filed a preliminary prospectus to Canada’s securities commissions for an IPO.

Investors will be able to purchase one trust unit and one-half of a warrant for $10.00; the warrant must be traded in for a $10.00 trust unit by June 30, 2010.

The fund, which was created to give investors exposure to leading British bank-based financial services companies, is a closed-end investment trust that gives trust unitholders monthly cash distributions at an initial rate of 8% or $0.80.

AIC Investment Services is responsible for the fund’s overall investment strategy.

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Three firms guilty of tax evasion

(May 25, 2007) The Canada Revenue Agency has completed its investigation into three Quebec investment firms, finding them all guilty of tax evasion. Each firm, including 9063-8925 Quebec Inc. (Berkshire), 9056-2323 Quebec Inc. (First Financial) and First One Investment Corporation (First One), has been slapped with a $100,000 fine.

All three companies used a similar scheme to allow investors to withdraw amounts from their locked-in retirement funds without declaring them as revenue or paying income taxes on them.

Under the scheme, the investors transferred funds from their RRSPs, LIRAs and RPPs into a self-directed RRSP and then invested in shares of the investment firms involved. The companies then loaned the same amount back to the investors at preferential rates.

“The Income Tax Act stipulates that withdrawals of retirement funds must be included in a taxpayer’s income and are subject to income tax withholding,” the CRA pointed out in a press release. “The value of the shares was, therefore, added to the taxable income of the taxpayers who participated in this scheme.”

(05/25/07)