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(July 23, 2007) While some rules are made to be broken, most are not. The B.C. Securities Commission announced Monday that Edward Bernard Johnson has been suspended and fined for breaking IDA rules.

Between April 2000 and September 2004, Johnson let Stanley Steven Ross, who was already prohibited from trading securities, trade in a client’s account without proper authorization.

Johnson executed about 400 trades for Ross. While the evidence notes that Johnson wasn’t aware of Ross’s ban, the hearing panel said if he had followed IDA protocols, he would have known that Ross was prohibited from trading.

“By failing to comply with those rules,” the panel said, “Johnson allowed Ross to make hundreds of trades in our markets that ought never to have taken place, all in violation of a trading ban imposed by this commission.”

Making matters worse for himself, Johnson initially told the commission that he had no idea that Ross traded in the account. He later admitted he was lying.

Johnson has been fined $68,000 and can’t trade from September 1 to November 1.

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CI partners with KBSH Capital Management

(July 23, 2007) CI Investments has found a new partner to manage its American Managers Corporate Class. The company announced Monday that KBSH Capital Management will look after the multi-manager, multi-style U.S. equity fund.

“KBSH is an institutional money manager with an exceptional track record in choosing U.S. stocks using a growth-oriented investment approach,” says Peter Anderson, CI’s CEO. “The KBSH team is a natural fit for the fund and will provide an additional layer of expertise and diversification.”

The CI American Managers Corporate Class, a fund with $341 million in assets, is overseen by four other portfolio management teams, as well.

KBSH will also look after the Select U.S. Equity Managed Corporate Class and Select U.S. Equity Managed Fund, which are part of the Portfolio Select Series. KBSH is responsible for the small-cap portion of the funds.

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RBC Dexia scores huge pension plan contract

(July 23, 2007) RBC Dexia Investor Services has been selected by the Université du Québec as its custodian and securities lending provider for the institution’s $2.3 billion pension fund.

“After an extensive assessment of the capabilities of the various investor services providers in the Québec marketplace, we determined that RBC Dexia would provide the best overall fit for our organization,” said Richard Laflamme, general director of the Université du Québec’s pension fund.

Laflamme said strong market knowledge, a global business approach and a “high-touch approach to servicing their clients” were the main reasons Canada’s largest university network went with RBC Dexia.

(07/23/07)