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(May 30, 2006) Standard Life’s 1.6 million voting members have voted 98% in favour of converting the insurance giant into a publicly-traded company.

Standard Life required the support of at least 75% support of voting members for the resolution to pass at a special general meeting held on Wednesday in Edinburgh, Scotland.

The company will now seek Scottish court approval for the move, which would allow Standard Life’s shares to trade on the London Stock Exchange.

Chair Sir Brian Stewart says that, pending court approval and favourable market conditions, Standard Life plans to launch its share offering June 15, with the LSE listing expected to begin in July.

“We are delighted with this outcome,” Stewart said. “We have a clear and emphatic vote of confidence in our proposal to demutualize and float on the London Stock Exchange, and this decision is an excellent outcome for the future of Standard Life. As I have said throughout this process, we believe this is in the best interests of members, policyholders and our business.”

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S&P bond index lands eighth member

(May 31, 2006) The bond index constructed by Standard & Poor’s will get some added depth, starting June 2, as Desjardins Securities will begin contributing bond pricing data for the index.

The S&P/TSX Canadian Bond Index already includes bond pricing data from CIBC World Markets, RBC Capital Markets, BMO Nesbitt Burns, Casgrain & Company, Laurentian Bank Securities, Merrill Lynch Canada, and TD Securities.

“Having an independent, multi-dealer priced bond index is essential for fixed income market participants,” said Steve Rive, vice president of Canadian index services at Standard & Poor’s. “The addition of Desjardins Securities as a price provider underscores the growing acceptance of the S&P/TSX Canadian Bond Index.”

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CEO pay not boosting share value

(May 31, 2006) Ontario Teachers’ Pension Plan has unveiled a study which concludes that compensation for chief executives bears no correlation to overall stock returns.

“In recent years many boards have tried to improve the link between executive pay and company performance,” says Brian Gibson, senior vice-president, public equities, OTPP. “While a few individual companies may have made good progress, in general there is no empirical evidence that compensation has become better linked to performance.

“We are encouraging boards to re-examine their executive compensation structures to find ways to improve the link between pay and performance.”

The study sampled 65 current TSX-listed companies, using two criteria: they had share price data dating back to January 1, 1995; and were among the largest 100 companies as of January 1, 1995.

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CIBC offers commodity pool for pensions

(May 31, 2006) CIBC Asset Management has launched the CIBC Pooled Commodity Fund for pension plan sponsors. Commodities offer improved portfolio diversification because of their low correlation to either debt or equity.

The pool invests in 24 major commodities and tracks the Goldman Sachs Light Energy Index, which has a lower exposure to the energy sector than the standard commodity index.

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MFDA bans, fines New Brunswick rep

(May 31, 2006) The MFDA has ruled against Barry James Coleman in a hearing held in Moncton, New Brunswick. Between May 2004 and January 2005, Coleman misappropriated $28,250 from a client.

Coleman was also found to have performed a series of unauthorized redemptions over the same period, involving the same client, totalling $31,400.

The client discovered the redemptions and complained to Coleman’s firm, Investors Group. Coleman paid back $30,000 to the client before he was fired by IG in March 2005.

Coleman has been ordered to pay a fine of $25,000, plus $7,500 in costs. He has also been permanently barred from engaging in any securities-related business in any capacity. The MFDA does not have the legal power to collect fines from individuals no longer registered with the association.

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CFA exams slated for this weekend

(May 31, 2006) This weekend will see more than 84,000 people worldwide take one of the three examinations leading to the Chartered Financial Analyst designation. There are currently more than 68,000 people holding the designation.

Of the 84,491 slated to take one of the exams, about 9% (or 7,600) are Canadian. The largest group of candidates comes from the U.S., at 36%, while 21% are in Pacific Asia and 15% are from Europe. Last year’s pass rate averaged 48% among the 59,000 candidates who wrote the exams.

“The value and recognition of the CFA charter continues to grow worldwide, reflecting demand by employers and clients for the commitment, persistence, and passion a charterholder demonstrates by studying the curriculum and passing the examinations,” said Jeff Diermeier, CFA, president and CEO of CFA Institute. “The ethics component is particularly an asset of the designation.”

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