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(September 21, 2006) The BCSC has issued a notice of hearing against Albert Stephen Budai, alleging fraud and illegal fund-raising.

According to the notice, Budai bought and then sold shares in companies he profiled in the media, a fraudulent practice referred to as “scalping.” The alleged fraud took place between January 2001 and December 2004.

The BCSC alleges that Budai also advised investors to buy shares without being properly registered. The notice claims he raised more than $1.4 million by issuing shares in a company he controlled, without meeting proper registration or prospectus requirements.

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Online tool calculates longevity risk

(September 21, 2006) A Toronto financial planning firm is offering free access to an online tool to calculate the likelihood of outliving one’s resources. TriDelta Financial Partners’ TriDelta Estate 100 tool scores users on a scale of 0 to 100, with lower scores pointing to a greater risk that the client will run out of money.

The tool draws on tax, pension and actuarial tables to arrive at the user’s final score. The company says it can give users a good indication of the size of the client’s estate and can help guide tax-planning decisions.

“We have found that even very wealthy individuals have a fear of outliving their money,” said Ted Rechtshaffen, president and CEO of TriDelta Financial Partners. “A big part of our job is to provide our clients with the facts about their future, and in many cases to reassure them that their focus shouldn’t be to save money, but to enjoy life.”

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Manulife offers benefit package for U.S. employees

(September 21, 2006) Manulife Financial has announced it has obtained the Canadian rights to ClearSource, which will be made available to Canadian group clients with fewer than 50 resident U.S. employees.

The program allows Canadian firms to provide the same benefits to employees in the U.S. as they offer their Canadian staff.

“The U.S. benefit marketplace is complex and heavily regulated by state,” said Rick Brunet, executive vice-president for group benefits, Manulife Financial. “The structure of ClearSource eliminates the complexity of dealing with the various state regulatory regimes and makes it simple for our customers.”

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Travelers offers E&O product

(September 21, 2006) St. Paul Guarantee Insurance Company, better known as Travelers, has introduced SelectOne, which offers advisors coverage for everyday risks associated with their profession. The liability product is also available to those involved in mutual funds and hedge funds.

“Investment advisors, mutual funds and hedge funds have come under increased regulatory scrutiny over the last few years and, as a result, these groups are recognizing that they require coverage to address the wide variety of risks they face,” said Phil Baker, vice-president, financial and professional services, Travelers. “Our policy is flexible so customers can choose the coverages they need and combine them all under one policy with separate liability limits for each coverage.”

Under SelectOne, advisors can be covered for the following: failure to adhere to investment guidelines and restrictions; misrepresentations and failure to adequately disclose risks; mismanagement of investments on behalf of a pension fund; breach of fiduciary duties; and unintentional errors committed in the course of performing regular investment advisor duties.

Separate coverage can be purchased for fidelity and crime exposures under a financial institution bond or a fiduciary dishonesty bond. Coverage is also available for kidnap and ransom risks.

(09/21/06)