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(December 4, 2006) The IDA has imposed a fine of $25,000 on Denes Luciano Fransesco Peroni and Robert Paul Joseph Hétu, having found the pair “knowingly engaged in conduct unbecoming and contrary to the public interest.”

Both were listed as approved persons with the Sudbury branch of Berkshire Securities Inc. at the time. The IDA found that between January 2002 and February 2003, they had hidden the true cost of three advertising campaigns from their firm, claiming the ads in question had run in the newspaper 12 times when, in fact, they had run only four times.

The ad campaign was carried out in cooperation with three mutual fund companies, and afforded Peroni and Hétu “compensation that exceeded what is permitted by National Instrument 81-105,” according to IDA documents.

“Without in any way derogating from the gravity of the respondents’ misconduct, their offence does not rank in the worst category of offences,” the IDA panel said in its decision. “The amounts involved were small and have been recovered from the respondents. The victims were not investor clients.”

On top of the fine, the pair must jointly pay $50,000 in costs and are suspended from the industry for nine months, as of November 17, 2006. They are required to rewrite the conduct and practices exam before they will be re-approved as registered reps.

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Brandes hires Sionna, offers low load option

(December 4, 2006) Brandes Investment Partners has announced it will include a new low load option on Class A units of the firm’s funds, reducing the investor commitment from seven years to just three. The option is effective on all Brandes Funds, as of December 28, 2006.

“This sales option is becoming an industry standard,” says Oliver Murray, president and CEO of Brandes. “Adding low load is about providing investors with choice and flexibility to structure their portfolios accordingly.”

At the same time, Brandes has announced a number of changes to its Brandes Canadian Balanced Fund, naming Kim Shannon’s Sionna investment managers as “additional investment advisor” on the fund.

The fund’s name will be altered, to Brandes Sionna Canadian Balanced Fund, effective December 5, 2006. The fund’s management fee will fall 10 basis points, and the typical exposure to foreign equities will decrease, from 30% to 25%.

“We are thrilled to be making the inaugural announcement regarding the new strategic alliance,” says Murray. “Sionna’s approach to Canadian equities is a perfect fit for a balanced strategy. Combined with the Brandes global equity and fixed income, this is an excellent core portfolio holding for clients.” The distribution policy for the fund will be changed, with payments made quarterly instead of annually. Unitholders with non-registered accounts may opt for a cash distribution.

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CI extends service contract with RBC Dexia

(December 4, 2006) RBC Dexia Investor Services has won a five-year extension of its contract to provide investors services for CI Financial, including custody, fund accounting and securities lending services.

“We’ve enjoyed a very positive working relationship with RBC Dexia since 2001 and we are extremely confident in our decision to extend our outsourcing agreement for another five years,” said David Pauli, CI Financial executive vice-president. “We continue to be impressed — not only by RBC Dexia’s track record and high quality of service but by the commitment to the wider business we see through the recent joint venture between RBC and Dexia.”

Under the contract, RBC Dexia will also act for Assante Wealth Management as the primary custodian for the private clients of Stonegate Private Counsel and United Financial Corporation.

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(12/04/06)