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(December 13, 2007) The Investment Dealers Association’s been busy. On Thursday the organization fined two people a total of $50,000.

Hal Julian Biren was slapped with a $25,000 fine after admitting that between February 2001 and March 2004 he “failed to use due diligence to learn and remain informed of the essential facts relative to a customer when accepting an account and instructions on the account,” says the IDA.

Between June and September 2001, he opened an RRSP account for a relative of his, but the new client application form wasn’t provided by that person, rather it was handed over by the client’s husband.

Biren then traded in the client’s account without telling that person and executed trades on the client’s husband’s instruction without getting the proper trading authorization.

Besides paying the fine, Biren, who is employed with HSBC Securities in Canada, will be subject to close supervision for 12 months and may not open a new account for his spouse or any other relative for two years.

In the second case, Andy Hyon Chul Kim, who worked at CIBC, was fined $25,000 for a variety of infractions including failing to disclose to his employer that he had invested in a private placement and opening an account with another IDA member firm. (And misrepresenting his occupation on that account).

The hearing panel found that the violations “go to the fundamental foundation of trust between a registered representative and his employer.”

The panel found Kim’s actions “deceitful” and said that they “exposed CIBC to dire consequences. Kim is now employed with TD Waterhouse Canada in Oakville.

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Le Pan appointed chair of CPAB

(December 13, 2007) The Canadian Public Accountability Board is getting a new leader. David Wilson, chair of the Ontario Securities Commission, has appointed Nick Le Pan as CPAB’s chair, effective April 2008.

Le Pan will replace the retiring Gordon Thiessen, who has been CPAB’s chair since the organization was founded in 2002. Previously, Le Pan was the superintendent of financial institutions from 2001 to 2006 and deputy superintendent before that. Earlier, he was a senior official in the federal Department of Finance.

“Nick Le Pan was the unanimous choice of the council,” said Wilson. “He was involved in the formation of the CPAB, and we believe he will provide great leadership for the CPAB, which has now become an integral part of the regulatory and oversight system for financial reporting in Canada.”

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Industrial Alliance buys L’Excellence Life

(December 13, 2007) Industrial Alliance Insurance announced on Thursday that it’s acquiring L’Excellence Life Insurance Company.

Buying L’Excellence will give Industrial Alliance an opportunity to break into the individual disability and health insurance sector.

L’Excellence deals in the manufacturing and distribution of personal life and health insurance products for individuals, corporations and professional associations, and distributes products mostly in Quebec.

“We’re pleased to acquire a company with a long and rich expertise in the individual disability and health insurance market,” says Normand Pépin, executive vice-president at Industrial Alliance. “It’s a complementary market for our life insurance activities. We plan to make L’Excellence our platform for the development of our activities in this new market segment, as much in Quebec as outside of the province.

Industrial Alliance says its investment in the Quebec-based insurance company could reach $67.3 million if everything goes as planned and if existing debts are accounted for. The company adds that share buybacks will be done quickly to eliminate any dilution for shareholders.

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PIAC wants government to amend Bill C-10

(December 13, 2007) The Pension Investment Association of Canada wants the Canadian government to amend Bill C-10 — legislation related to tax avoidance by Canadians who use foreign investment trusts.

PIAC says while many Canadians invest in foreign equities and real estate — often to avoid paying certain taxes — pension plans should be allowed to do the same as they’re already exempt from paying Canadian income tax.

The organization wants the bill amended to say that the non-resident trust rule would not apply to registered pension funds.

“There is no sound policy rationale for applying the NRT regime to registered pension funds, and it will result in significant and unnecessary costs for Canadian pension funds,” says PIAC in a release. “Unnecessary costs serve to reduce funds available to pay pensions.”

(12/13/07)