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(September 5, 2006) An IDA hearing panel has dismissed a motion filed by Stephen Taub, formerly a registered representative with Brant Securities and Research Capital, who challenged the SRO’s by-laws and jurisdiction.

The panel accepted IDA staff’s position that the industry association continues to have jurisdiction over Taub, pursuant to by-laws that give the IDA jurisdiction over former “approved persons” for five years from the date on which they cease to be approved persons. Taub resigned from his position at research in September 2004.

A disciplinary hearing will be scheduled to address allegations that Taub circumvented IDA and SEC rules by opening accounts and accepting orders from clients outside of his jurisdiction of registration. It is also alleged that Taub provided confidential account information to and accepted instructions from individuals who were not registered account holders, and who had no connection with the accounts being used for trading. Further, the IDA alleges Taub’s book of business dealt substantially with client accounts for corporate clients and offshore entities that traded stocks on the Canadian over-the-counter market and the U.S. Over-The-Counter Bulletin Board. Finally, the IDA’s statement of allegations includes an extensive list of persons with criminal and regulatory histories who owned, operated or were associated with accounts where Taub was the registered representative.

The IDA alleges that “throughout the material time, certain of the accounts displayed activities and characteristics that would have caused a reasonable registrant to investigate the owners and operations of the accounts, because each activity, alone or in combination, is potentially a symptom of illegal conduct or conduct contrary to the public interest, including share manipulation and improper control block distributions.”

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Investors Group launches charitable-giving program

(September 5, 2006) Investors Group has launched a charitable-giving program that will allow clients to make gifts of money, securities or life insurance to establish a donor-advised account and make annual grants from the account to selected charities of their choice.

Clients donating through the Investors Group Charitable Giving Program receive a charitable-donation tax receipt from the Strategic Charitable Foundation. Assets donated to the foundation are invested in one of nine eligible Investors Group mutual funds. The program requires a minimum initial donation of $25,000.

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Investors missing out on global opportunities: TD

(September 5, 2006) A new report from TD Economics could provide some useful information to help clients consider foreign investments and portfolio diversification. The report published Tuesday, entitled 10 Reasons Canadians Should Invest Abroad, outlines 10 top reasons for investing internationally and explains why clients may miss out on financial opportunities if they limit themselves to domestic investments.

“Understandably, Canadians feel a greater sense of security in the domestic corporate landscape, where companies are more familiar and the Canadian dollar-denominated investments are insulated from foreign-exchange risk,” says co-author and deputy chief economist, Craig Alexander. “International investments can provide access to additional sectors and growth prospects, higher-dividend yields and attractive valuation plays. While a floating Canadian dollar can impact returns, there are ways to find shelter or even profit from exchange-rate movements.”

Among the top 10 reasons for diversifying internationally, TD points out that Canada is a small, highly-cyclical market, representing only 3.5% of global equities. In addition, international valuations look attractive, international structural changes are positive and higher-dividend yields can be found abroad. The report also points out that the Canadian market is dominated by only a few sectors, and some industries — namely, pharmaceuticals, health care, defence and information technology — are underrepresented or not represented at all in this country.

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