Briefly:

(April 8, 2005) The Canadian Securities Administrators has officially launched the National Registration System, intended to harmonize the registration regime for individuals and firms across all jurisdictions.

The system, in the works for several years, will allow registration in multiple jurisdictions with applicants dealing only with their home or principal regulator.

The NRS will apply principles of mutual reliance to reduce unnecessary duplication in the analysis and review of registration applications of investment dealers, mutual fund dealers, unrestricted advisors (investment counsel/portfolio managers) and their sponsored individuals, the CSA says.

Applicants will be required to meet the standards of the principal regulator. “Non-principal jurisdictions will generally rely on the principal regulator’s decision to grant registration and will normally grant registration within five days after the principal regulator.”

“The National Registration System will simplify the registration process for firms and individuals,” says David Gilkes, manager, registrant regulation, at the Ontario Securities Commission. “The benefits of the NRS include enhanced efficiencies for the industry and an overall quicker turnaround to become registered in multiple jurisdictions.”

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Commissioners defend ASC executive

(April 8, 2005) The part-time commissioners at the Alberta Securities Commission have released a statement defending chair Stephen Sibold and executive director David Linder.

“The commissioners have full confidence in the integrity and competence of Messrs. Sibold and Linder, and in their ability to continue to carry out their responsibilities in the offices which they hold,” the statement reads in part.

The move comes in the wake of a series of highly critical newspaper articles alleging questionable management practices at the Alberta regulator. The articles point to a report which apparently accuses Sibold and Linder of fostering a “dysfunctional and toxic” work environment.

Sibold — whose five-year term as chair ends next month — has rejected the accusations as “scurrilous and groundless” and has announced plans to sue the National Post.

In the statement, the part-time commissioners also say that they are hiring outside management consultants for advice with respect to future human resources strategies.

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Think tank recommends no change in rates

(April 8, 2005) The Bank of Canada should maintain its key overnight lending rate at 2.5%, the C.D. Howe Institute recommends.

The majority of the institute’s 12-member monetary policy council supported standing pat on rates, with only one dissenter. The central bank makes its next interest rate announcement on Tuesday, April 12.

“Canada’s aggregate demand continues to run slightly below the economy’s productive capacity, and this situation is likely to persist through the balance of 2005,” the council said, adding that high energy prices are showing little sign of spilling over into core inflation and wages.

A majority of council members also want to see the overnight rate held steady at the Bank of Canada’s meeting in late May.

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Sun Life unveils new CI product, plans to bolster LTC division

(April 7, 2005) Sun Life Financial has unveiled a new critical illness insurance product that covers 24 major illnesses in full, with another four illnesses qualifying for partial payout.

“Following a waiting period, an insured person who is diagnosed with one of the covered illnesses will receive a lump-sum payment that could be used to pay for specialized medical treatment not covered by provincial health insurance, pay off debts, or help offset loss of employment earnings if the person chooses to take time away from work to focus on recovery,” said Diana Deverall-Ross, vice-president, individual health insurance.

Sun CII also features a standalone child plan, which covers the same illnesses as the adult plan, plus five childhood illnesses: cerebral palsy, congenital heart disease, cystic fibrosis, muscular dystrophy, and type 1 diabetes.

The company also announced today a plan to build out its presence in the long-term care insurance arena, aiming to increase its force of 130 specialists to 200 by the end of the year. The firm is introducing new LTCI sales manager and training manager roles.

Sun Life has referral arrangements with its Clarica subsidiary, as well as Investors Group.

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Fiera names new vice-president

(April 7, 2005) Fiera Capital has named André Sirard as vice-president, private wealth management effective Monday, April 4, 2005.

Sirard is a CFA charter holder and brings 25 years of experience in the field of portfolio management, in the areas of investment, business development and client servicing. For the past three years he was first vice-president and chief investment officer at CIBC Private Wealth Management (TAL Private).

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VenGrowth unit launches commodity fund

(April 7, 2005) Criterion Investments, the retail structured products subsidiary of VenGrowth Asset Management, has filed a preliminary prospectus for IPO of the Criterion Dow Jones-AIG Commodity Index Fund, an income trust with exposure to its namesake index .

The fund is targeting a distribution of $0.45 per annum or 3.0% per annum on the original issue price.

CIBC World Markets Inc. is leading a syndicate of agents for the offering that includes National Bank Financial, BMO Nesbitt Burns, Scotia Capital, TD Securities, HSBC Securities (Canada), Canaccord Capital Corporation, Desjardins Securities, Dundee Securities Corporation, First Associates Investments, Raymond James, Richardson Partners Financial Limited and Wellington West Capital.

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Conference Board says GDP growth options limited

(April 6, 2005) A drastic decline in net exports that began in the second half of 2004 shows no signs of letting up, says the Conference Board’s Spring 2005 Canadian Outlook.

“Given the continued strength of the Canadian dollar, the weakness in Canada’s real trade balance is not surprising,” says Pedro Antunes, director of economic forecasting. “An additional cause for concern is high inventory levels. Inventories cannot be built forever. Production could slow if consumer spending falls off from its current pace and exports do not rebound.”

According to the report, the Conference Board of Canada expects rising inventories to ease to more sustainable levels in the first quarter of 2005, keeping real economic growth flat. It also warns that a slower build in inventories could lead to negative first quarter GDP growth. The report also suggests the economic adjustment to a stronger Canadian dollar will be largely complete by the end of 2006.

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Desjardins launches long-term care plan

(April 6, 2005) Desjardins Financial Security recently added the Independent Living, Total Long-term Care plan for clients under age 80.

The product pays a monthly benefit following a doctor’s diagnosis if the insured becomes unable to perform certain daily living activities without the help of another person, or if the insured is suffering from a cognitive impairment like Alzheimer’s disease that could endanger their health or safety.

Different policies provide benefit payments for two years, five years or a client’s lifetime. Policy waiting periods range from 30 days to 180 days. Minimum monthly payment options range from $1,000 to a maximum $8,500 each month. Monthly payments are not dependent on admission to any care facility.

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PH&N names new president

(April 5, 2005) Phillips, Hager & North Investment Management has appointed John Montalbano as president. He joined the Vancouver-based company in 1987 as an equity analyst and most recently, oversaw its distribution arm.

“We are pleased to welcome John as president,” said PH&N chair Tony Gage. “John is a respected and experienced leader with an uncompromising commitment to the firm, our clients, and the highest standards of professionalism and ethics.”

“PH&N has a breadth and depth of talented investment professionals that is second to none in Canada,” added Montalbano. “The cornerstone of PH&N’s culture over the past 40 years has been, and will remain, placing the interests of our clients first.”

Montalbano replaces Tom Bradley who has stepped down after a six-year term.

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Assante shuffles U.S. equity managers

(April 5, 2005) Assante Asset Management, the investment division of Assante Wealth Management, recently appointed Epoch Investment Partners and Trilogy Advisors to manage the Assante U.S. Equity Diversified Pool in the Assante Optima Strategy program. Epoch and Trilogy will take over as subadvisors on April 8, replacing Trilogy’s sister company, BPI Global Asset Management.

According to the fund’s investment strategy, managers select equity securities by identifying leader companies in different industries, using fundamental analysis. The U.S. equity pool, launched in May 2000, is a medium to high risk investment designed for clients willing to hold for a long term.

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Homebuyers not seeking financial advice: survey

(April 5, 2005) The majority of first-time homebuyers did not seek financial advice on their purchase, a survey released today suggests.

Fully 77% of those questioned by Decima Research for BMO said they did not get any financial advice related to home-buying. And of those who did receive advice, family and friends were a more popular source than mortgage brokers or financial planners.

“What’s surprising about these findings is the number of people who don’t seek financial advice from experts on the biggest investment they’ll ever make, and that could be a big mistake,” said Maria Racanelli, vice-president, personal banking, BMO. “Developing a realistic plan on how to manage both your regular payments and unexpected expenses often makes a huge difference in maintaining a comfort level about your overall finances.”

Recent first-time homebuyers who did obtain financial advice before purchase were more likely to agree that their home payments are a small and manageable portion of their household income than those who did not.

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Altamira savings product expands to advisor channel

(April 5, 2005) Altamira’s High-Interest Cashperformer savings account is now available through advisors and brokers, the fund company says.

The product has a current interest rate of 2.4%, and is offered to advisors through FundServ with a trailing commission of 0.25%.

“Since its December launch, High-Interest CashPerformer has proven immensely popular, growing to over $600 million in deposits,” says Altamira president Greg Reed. “Today we are making it available to all Canadians who work with financial advisors or brokers. Any cash sitting in an investor’s portfolio can now easily be placed in a CDIC insured, no-fee, high rate savings account.”

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AGF introduces Advantage Trusts

(April 4, 2005) AGF has launched three income trusts, part of the company’s new push into structured products.

The trio of AGF Advantage Trusts are available until mid-May. “They are groundbreaking products that harness the investment power of three individual income trusts wrapped within an innovative tax-efficient mechanism,” AGF says. “EP Advantage Trust, SP Advantage Trust and YP Advantage Trust represent three of Canada’s largest income trusts — Enerplus Resources Fund, Superior Plus Income Fund and Yellow Pages Income Fund.”

AGF has also hired Gord McMillan, founder of Skylon Capital and Triax Capital, on an exclusive consulting arrangement to assist in bringing new structured products to market.

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Businesses optimistic about economy, says central bank

(April 4, 2005) Greater stability of the loonie is contributing to a more positive economic outlook among Canada’s business leaders, according to a Bank of Canada survey.

The central bank interviewed senior management at 100 firms for its spring survey. In general, businesses are more optimistic about the economy than they were a few months ago, thanks to a steady dollar, which has eased concerns among exporters, the bank says.

“The balance of opinion regarding future sales is positive across most sectors and has improved in the manufacturing sector,” the survey says. “Although many firms continue to be adversely affected by the appreciation of the Canadian dollar, exchange rate considerations are less of a concern owing to the greater stability of the dollar in the three months since the winter survey.”

Businesses continue to expect strong domestic sales, and the vast majority believe that inflation will remain under control over the next 12 months.

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Saxon trumpets four-year winning streak

(April 4, 2005) Saxon Fund Management today reported net sales of $40 million for March, the Toronto-based firm’s 50th consecutive month of positive sales. Saxon’s assets under management stand at $1.38 billion.

“Reaching this golden milestone is a significant achievement — especially given the range of volatile market conditions we have seen over the last 50 months,” said Allan Smith, Saxon’s chief operating officer. “There are few, if any, other mutual funds companies in Canada that have achieved this level of consistent growth.”

Saxon launched two new funds earlier this year: the Saxon U.S. Equity Fund and the Saxon International Equity Fund.

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B.C. regulator bans three fraud artists

(April 4, 2005) The British Columbia Securities Commission has issued sanctions against three men who broke securities laws, causing investors to lose more than $2 million.

A commission panel ruled that former registered rep Larry O’Connor lied to clients when he convinced them to redeem their mutual funds and turn the money over to him.

Between February 1998 and February 2001, three elderly clients gave the Parksville-based man about $163,000. The clients have lost all or most of their money. O’Connor was permanently banned from the capital markets and ordered to pay nearly $250,000 in fines and costs.

The commission also issued sanctions against Steven Hughes of Kamloops for selling $1.4 million worth of “high-yield, low risk” securities to investors, mostly seniors. Hughes has been permanently banned from the capital markets and ordered to pay an administrative penalty of $250,000.

Surrey’s Eric Nelson was banned from the markets for 10 years and fined $55,000 after 10 investors gave him more than $550,000. He used some of the money for personal use, but lost most of it trading options.

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