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(July 7, 2006) The C.D. Howe Institute’s Monetary Policy Council has recommended the Bank of Canada raise interest rates by 25 basis points to 4.5% at its next meeting on July 11.

The council of economists and academics was nearly unanimous in its recommendation, with Carleton University’s Nicholas Rowe dissenting by advocating no change to the overnight rate.

The MPC also looked ahead to the Bank’s meeting in September and recommended a further quarter-point hike to 4.75%. Again, Rowe disagreed, sticking with his 4.25% recommendation.

The MPC cited strong economic growth on the demand side and a tight labour market among its reasons for higher rates.

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Lipper joins fund committee

(July 7, 2006) The Canadian Investment Funds Standards Committee (CIFSC) has announced that Lipper has joined its ranks. Lipper is a well-known U.S.-fund research firm and a subsidiary of Reuters.

“We are pleased that Lipper has agreed to join our organization, and look forward to having its valuable input further enhance the committee’s work,” said Ralf Hensel, CIFSC chair. “Lipper’s entry comes at a time when CIFSC has decided to add key players to its current complement of members, including industry, investor and regulatory representatives, to ensure all possible views are appropriately considered.”

Jed McKnight, head of North American research, will serve as Lipper’s representative on the committee. “Lipper considers this appointment an honour and looks forward to working with the existing committee members to help advance the Canadian investment fund industry,” he said.

Fund researcher Morningstar Canada left the CIFSC in March, and has since unveiled its own competing set of fund categories.

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Univeris lands four new clients

(July 7, 2006) Wealth management platform provider Univeris has announced four new clients, AXA Financial Services, Qtrade Canada, FundTrade Financial and FundEX Investments, which is soon to be merged with FundTrade.

FundEX and FundTrade alone represent assets under management of about $7.5 billion, while AXA Financial is the Canadian unit of the global insurance giant of the same name. The four new clients bring the total AUM using Univeris to $63 billion.

“It is never outdated and is unique in that it is a single life purchase for a company,” said Carmine Tullio, president and CEO of Univeris. “It’s the best of what technology can offer for the financial services industry and upon which our clients can deploy their unique wealth management strategies into the market.”

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FPSC announces CFP exam results

(July 7, 2006) The Financial Planners Standards Council has announced the results of the most recent sitting of the CFP exam, with 410 of 933 people passing, for a success rate of 43.94%. The 2005 pass rate in June was 47% while 478 financial planners successfully completed the November 2005 sitting of the exam, for a pass rate of 52%.

Among those taking the exam for the first time, the success rate in June was slightly higher, at 50.78%. The list of the 410 successful CFP candidates will be published in The Globe and Mail on Thursday, September 7, 2006.

“Congratulations to all the successful candidates,” said Cary List, executive vice president of standards, COO and acting president of FPSC. “They are now one step closer to earning the CFP credential — acknowledged throughout Canada and internationally as the gold standard for competence and ethics in financial planning.”

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Standard Securities agrees to pay $80,000 fine

(July 7, 2006) Stock market regulator RS has fined Standard Securities $80,000 after the firm admitted that it failed to implement an adequate trade supervision and compliance system. Standard has also agreed to pay $20,000 in costs.

According to the settlement agreement, between April 2002 and April 2004, Standard Securities did not adopt adequate written policies and procedures to be followed by the company’s directors, officers, partners and employees to ensure compliance with RS Universal Market Integrity Rules and policies.

RS notes that Standard undertook “significant improvements” to its trade supervision and compliance systems in 2004, and that a review last year found no material deficiencies with Standard’s trade supervision and compliance system.

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