Briefly:

(July 8, 2005) The Canadian Securities Administrators has published a new rule intended to harmonize and consolidate prospectus and registration exemptions across Canada. The change will result in more efficient access to capital markets, the regulator says.

Provided all necessary approvals are obtained, National Instrument 45-106 Prospectus and Registration Exemptions (NI 45-106) will come into effect on September 14, 2005, replacing most significant existing exemptions found in securities legislation across Canada.

CSA president Jean St-Gelais says the new instrument is more straight-forward and user-friendly.

“Harmonizing our prospectus and registration exemptions offers ‘one-stop shopping’ for Canadian issuers — they no longer have to review 13 different sets of legislation to access the exempt market,” he added. “This is a very significant achievement and will provide much value to companies trying to raise capital.”

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Kelly steps down at Wellington West

(July 8, 2005) Kevin Kelly, president and co-chief executive at Wellington West Capital is reportedly stepping down from the job he shares with Charlie Spiring, just six months after joining the firm.

Kelly is leaving in order to spend time with his family, reports suggest, but will continue with Wellington as a non-executive member of the board and a minority shareholder. Kelly is being replaced by executive vice president John Rothwell.

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B.C. regulator fines tardy Toronto investment firm

(July 8, 2005) It took nearly 45 years, but the British Columbia Securities Commission has finally caught up with a Toronto-based investment firm which was serving B.C. clients without being properly registered in the province.

Martin, Lucas & Seagram, an investment counsel and portfolio manager, admitted to advising as many as nine B.C. clients.

The firm was ordered to pay more than $135,000, including registration fees it would have had to pay over the four-decade period.

Martin, Lucas & Seagram officially registered in B.C. in March, 2005.

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Quadrus introduces automatic portfolio rebalancing

(July 8, 2005) Quadrus Investment Services has introduced automatic rebalancing of mutual funds across a client’s entire portfolio.

“Investment representatives have often asked us to make it easier to build portfolios with mutual funds, and to provide simple yet sophisticated solutions for their affluent clients,” says company vice-president Alf Goodall. “We have achieved this by introducing the first investment program in Canada to automatically rebalance a client’s portfolio across any mutual funds they hold with Quadrus.”

There are no fees attached to the new program, known as Fusion — clients pay only the regular fees associated with mutual funds as outlined in the prospectus, Quadrus says.

Quadrus is also introducing six new tax-advantaged funds, available immediately: Quadrus Cash Management Corporate Class, Quadrus Fixed Income Corporate Class, Quadrus Canadian Equity Corporate Class, Quadrus Canadian Specialty Corporate Class, Quadrus U.S. and International Equity Corporate Class and Quadrus U.S. and International Specialty Corporate Class.

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Hub completes consolidation process

(July 7, 2005) Hub Financial, the country’s largest managing general agent, and its mutual fund dealer, Hub Capital, have unveiled a new corporate structure, after amalgamating 15 MGAs into a single company.

“I am happy to announce that we have arrived,” says Hub Financial president Terri DiFlorio. “We recognize and identify that a more unified front is what is required to take us to the next level. Hub Financial and Hub Capital are poised to be industry leading financial services intermediaries serving the needs of our brokers and representatives in every way.”

Effective immediately, John Lutrin will assume the role of executive vice-president and chief marketing officer for the entire company, including all product lines. In addition, Jeff Botosan has been appointed executive vice-president and chief operations officer.

“Although Hub Financial and Hub Capital will continue to exist as separate corporate entities, this is the first day in our future together as Hub,” DiFlorio said.

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CSFB Canada appoints new chair

(July 7, 2005) Credit Suisse First Boston Canada has appointed Ronald Lloyd, former head of Merrill Lynch Canada, as its new chair.

Lloyd will lead CFSB Canada’s investment banking operations, the company said in a statement. “We are delighted to welcome Ron to CFSB,” said CEO Brady Dougan in a statement. “He is a trusted advisor to many of the leading corporations in Canada as well as a proven manager. Under Ron’s leadership, we look forward to building on the success of this key component of our banking franchise.”

Lloyd has more than 20 years of financial services experience and currently serves as vice chair of the IDA.

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Ottawa to increase contribution rates for public sector pension plans

(July 7, 2005) The federal government is raising pension plan contribution rates for public servants, as well as members of the Canadian Forces and the RCMP.

Current contribution rates are 4% on the portion of salary up to the maximum covered by the Canada Pension Plan or the Quebec Pension Plan ($41,100 for 2005) and 7.5% on the portion of salary above this maximum.

Starting in January 2006, plan member contributions will increase 0.3% each year until 2008 on earnings up to the maximum covered by the CPP/QPP, and until 2013 for earnings above the CPP/QPP maximum.

“The increase in member contribution rates reflects the government of Canada’s goal of ensuring that the costs of public sector pension plans are shared in a balanced way between the plan members and the government, and ultimately, the Canadian taxpayer,” said Treasury Board president Reg Alcock.

“The current contribution rates are among the lowest when compared to other major public sector pension plans,” Alcock added. “This increase ensures the long-term sustainability of the three pension plans.”

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OSC postpones Norshield hearing

(July 7, 2005) The Ontario Securities Commission has extended a temporary order suspending the registration of Norshield Asset Management until the fall. A hearing on the matter is now set for October 6.

Last week, an Ontario court appointed RSM Richter as receiver over the assets and properties of the Montreal-based hedge fund firm and its retail arm, Olympus United Group.

Norshield manages a variety of hedge funds and alternative investment products offered across Canada by Olympus, sold as shares in the Olympus United Funds Corporation. Olympus Funds has approximately 2,000 shareholders, the majority of whom are in Ontario, the OSC says.

At the beginning of May, Olympus announced the deferral of redemptions in a number of its funds. On May 13, the registration of Olympus was suspended because Olympus was operating without a registered trading and compliance officer.

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De Goey leaves Assante

(July 6, 2005) Former Assante advisor John De Goey has moved his practice to Burgeonvest Securities.

“I was given an excellent opportunity to open my own branch and to assist in building the Burgeonvest brand,” De Goey says, adding that he was drawn to the independent nature of the firm.

Headed by Mario Frankovich, Burgeonvest is headquartered in Hamilton, Ontario, with branch offices in Burlington and Windsor. De Goey, who will be based in Toronto, is an author and is frequently quoted in the media. He regularly contributes articles to several publications, including Advisor’s Edge Report..

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TD streamlines fund offerings

(July 6, 2005) TD Asset Management has announced plans to streamline its fund line-up, eliminating funds with significant mandate overlap. For example, the TD International Growth Fund will be merged into the TD International Equity Fund.

“This re-organization will allow us to offer our customers a more cost efficient and streamlined fund line-up,” says Steve Geist, president of TD Mutual Funds. “We continue to focus on the needs of our customers to ensure that we are providing the strongest possible line-up, and this proposed re-organization will further support that goal.”

Under the plan, still to be approved by regulators and unitholders, the following funds will be discontinued: TD Canadian Government Bond Index Fund; TD International Growth Fund; TD Managed Index Income Portfolio; TD Managed Index Income & Moderate Growth Portfolio; TD Managed Index Balanced Growth Portfolio; TD Managed Index Aggressive Growth Portfolio; and TD Managed Index Maximum Equity Growth Portfolio.

Once the necessary approvals have been obtained, the mergers will take effect in early October. Each unitholder’s investment in a terminating fund will be exchanged on a dollar-for-dollar basis for securities of the applicable continuing fund on a tax-deferred basis.

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BMO rolls out new western farm credit program

(July 6, 2005) BMO Bank of Montreal has unveiled a new financing product designed to assist prairie farmers in growing their businesses. BMO AgriReadiLine incorporates a variety of term loans and an operating line of credit into one re-advanceable mortgage-secured facility, the bank says.

“A significant number of our agricultural clients are looking for simpler financing solutions, which would allow them access to credit on a regular basis without requiring additional paperwork,” said Ted McCarron, senior vice president, prairies division, BMO Bank of Montreal. “The BMO AgriReadiLine will help agricultural business owners gain access to credit that is available where and when they need it.”

BMO AgriReadiLine is available to farmers in Alberta, Manitoba and Saskatchewan. BMO has also extended its BSE Disaster Assistance program until November 30, 2005.

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Sun Life purchase expands Hong Kong operations

(July 6, 2005) Sun Life Financial has agreed to purchase Hong Kong-based CMG Asia and CommServe Financial, which make up Commonwealth Bank of Australia’s insurance and pension operations in Kong Hong. The deal still faces regulatory scrutiny in Hong Kong, Bermuda as well as from the Office of the Superintendent of Financial Institutions (OSFI).

“The primary business development objective for Sun Life Financial worldwide has been to build sustainable scale and scope in the businesses in which we choose to compete,” said Jim Prieur, president and COO at Sun Life Financial. “Among the many benefits of this transaction, the acquisition will enable Sun Life Financial to leverage its market-leading expertise in the pension business in Hong Kong.”

Sun Life Financial Hong Kong will become the seventh largest life insurance company in Hong Kong measured by premiums from new sales, with a proprietary sales force of about 1,700 advisors and approximately 350,000 customers.

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Assante offers institutional manager pools

(July 5, 2005) Assante Wealth Management has launched a new Institutional Managed Portfolios program, which offers advanced portfolio management from several top money managers.

“This is really a breakthrough for affluent investors who want access to leading institutional investment managers,” explains Joe Canavan, chair of Assante Wealth Management. “We have brought together top performers selected for their proven abilities and track records.”

Starting September 1, 2005, IM Portfolios will have fixed administration fees, which Assante says will offer more transparency and predictability of costs for investors.

“Investors do not always realize that operating expenses vary significantly among managed money programs and among wealth management companies, leading to wide variations in the costs borne by investors,” explains Steve Donald, president and COO of Assante Wealth Management. “Our approach ensures that investors will know exactly what they are paying to invest, now and in the future.”

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BMO Nesbitt Burns launches unified account

(July 5, 2005) BMO Nesbitt Burns has announced the launch of a new unified managed account program. The Architect Program combines separately managed accounts, mutual funds, ETFs and alternative investment products into a single account, the firm says.

“This is a whole new level of portfolio construction that supports our clients’ focus on their long-term investment strategy instead of on short-term individual security and manager returns,” says Sarah Widmeyer, vice-president and managing director, managed assets group, BMO Nesbitt Burns. “Our new Architect Program consolidates everything into one account with one fee and one statement.”

The Architect Program offers both pre-configured model portfolios designed by specialist teams at BMO Nesbitt Burns, as well as a full open-architecture offering. The minimum investment is $150,000.

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Acuity launches two new funds

(July 5, 2005) Acuity Funds has introduced two new mutual funds to accommodate investors seeking a mutual fund version of Acuity’s successful Pooled Funds.

The Acuity Canadian Small Cap Mutual Fund invests primarily in equity securities of a diversified group of Canadian companies with a small market capitalization. The Acuity Conservative Asset Allocation Mutual Fund invests primarily in a conservative combination of Canadian equity securities, fixed income securities and income trusts.

Both are available in Class A and Class F Units. Class A units may be purchased under the initial sales charge, level load or the deferred sales charge option.

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