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(November 28, 2006) RBC Dominion Securities has agreed to pay $80,000 plus $10,000 in costs after it admitted to the Investment Dealers Association of Canada that it failed to notice a $420-million capital–ratio deficiency last June.

According to one media report, the error was traced to a securities borrowing transaction in which RBC placed “excess collateral” with Royal Trust Corp., an affiliated company. That transaction was omitted by mistake last October when RBC reported its capital levels.

Alex Popovic, the IDA’s vice-president responsible for enforcement, called the error a technical breach. Still, he says, it’s an important issue since it could have limited clients’ access to their monies.

The IDA was pleased with the way RBC handled the matter, particularly since the brokerage firm reported its mistake to the regulator shortly after it was discovered. “As soon as [RBC] recognized they’d made an error, they corrected it almost immediately. But for the fact that it involved such a significant sum of money that we felt they took all reasonable and appropriate steps in resolving the matter, including settlement with the IDA.”

No client money was lost, and there are no continuing effects related to the error.

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Comper departs on a high note

(November 28, 2006) The president and CEO of BMO Financial Group has announced he is retiring as of March 1, 2007. Tony Comper announced his decision as BMO unveiled better-than-expected earnings today, with a $2.7-billion profit for the full year.

Comper also announced he would not stand for re-election to the board of BMO but will “stay on in an advisory capacity until his scheduled retirement on April 24,” according to a press release.

The bank’s board has already chosen his successor. COO Bill Downe will step into the dual role of president and CEO.

“Bill and I have been working together almost as one since he became chief operating officer earlier this year,” Comper said. “The annual meeting before my retirement is the ideal time for me to thank shareholders for their support — and for shareholders to hear from Bill about his plans for BMO’s future.”

Comper was first appointed president in 1990, moving into the CEO’s office in February 1999, and served as chairman from July 1999 to May 2004, when the bank moved to a non-executive chairman model. He is credited with shoring up the bank at home, as well as its expansion in the U.S. and China.

“BMO is much stronger and better positioned for growth and continued success — both at home and abroad — because of Tony Comper’s vision, leadership, focus and discipline,” said David Galloway, chairman of the board, BMO Financial Group.

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TD adopts Goldman Sachs algorithms

(November 28, 2006) TD Securities has announced the adoption of a suite of equity algorithms licensed from Goldman Sachs Algorithmic Trading, with six algorithmic strategies already in place for the Canadian market, and another two in development.

“We see this as a significant value add for our clients,” says Robbie Pryde, vice-chair, TD Securities. “Pairing TD Newcrest, the number one Canadian equity franchise, with Goldman Sachs’ established, sophisticated Canadian algorithms creates a powerful tool for our clients who look to us for the best execution. This unique offering also provides our clients flexibility in how they access the equity markets.”

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(11/28/06)