Briefly:

(September 9, 2005) The IDA has fined RBC Dominion Securities $130,000 after the brokerage firm designated a branch manager in a B.C. office who never actually performed the job.

The case dates back to 1997 when RBC DS maintained branch offices in Penticton and nearby Kelowna.

The Kelowna branch manager was instructed by the firm to ask a representative at the Penticton office to become branch manager. The Kelowna manager told the rep that if he agreed to be the branch manager of the Penticton branch, he would hold the position in name alone and he would not have any responsibilities since the Kelowna manager would take over management duties for both branches.

The arrangement was in place for 46 months, until the Penticton rep resigned.

The IDA hearing panel ruled that by operating the Penticton branch as it did, RBC DS achieved a strategic advantage over other members of the industry who complied with the association’s bylaws. RBC DS also achieved an economic benefit from not having to pay the salary and bonus of a branch manager, the IDA said.

In April of this year, RBC DS agreed to pay a $50,000 fine but the hearing panel opted to boost the fine, believing that the initial penalty did not take into account the strategic and economic benefit enjoyed by the firm under the arrangement. RBC DS was also ordered to pay additional $5,000 in costs.

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Fraudster banned, fined by B.C. regulator

(September 9, 2005) The British Columbia Securities Commission has permanently banned Glenn Rosen from the province’s securities market after finding that he illegally sold securities, and lied to and defrauded investors in three separate schemes.

Rosen was also ordered to pay penalties of $375,000. The commission says Rosen illegally raised more than $440,000 from investors through “a pattern of deceitful behaviour to exploit the vulnerabilities of prospective victims and induce them to part with their money.”

At least 47 people were victims of his schemes, which involved two phony sports companies and a car detailing product.

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Feds to consult on single regulator

(September 9, 2005) The federal government has convened a conference with the provinces to begin the process of creating a national securities regulator.

Speaking to the Vancouver Board of Trade on Thursday, Finance Minister Ralph Goodale said “We need a system that keeps up with the rest of the world or we will have trouble getting access to capital.”

The conference, which is scheduled for September 29 in Ottawa, will address proposals for both a centralized and decentralized system. That includes the so-called “passport system” where Canada would have 13 provincial and territorial securities commissions that recognize each other’s decisions.

“You don’t want your country to be a backwater when it comes to capital markets,” said Goodale. (Filed by Joel Kranc, Benefits Canada)

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Housing starts eased in August

(September 9, 2005) Housing starts for August dropped to 201,000 units, down from 242,600 in July, the Canada Mortgage and Housing Corporation reports.

“Despite the decrease in August, housing starts in Canada have now been above the 200,000 level for 27 consecutive months,” says CMHC chief economist Bob Dugan. “Housing market fundamentals remain strong with high employment levels and low mortgage rates.”

Scotiabank economist Adrienne Warren says Canada’s homebuilding boom still appears to have plenty of steam, but the level of starts may have peaked. Still, she agrees that low interest rates and solid job growth will continue to support a high level of construction activity in the coming months.

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CSA publishes local exemptions

(September 9, 2005) The Canadian Securities Administrators today released a 16-page document of local exemptions to its new national instrument intended to harmonize prospectus and registration requirements.

The rule takes effect September 14.

For a complete list of the local exemptions to NI 45-106, please click here..

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Oil could hit $100 a barrel, CIBC says

(September 8, 2005) Rising energy prices are here to stay, says CIBC World Markets, predicting today that crude oil could hit $100 a barrel by the end of 2007.

CIBC has raised its forecast for oil prices for next year to $84 a barrel from $65. And chief economist Jeff Rubin forecasts that oil prices will average $93 a barrel in 2007, and could reach or exceed $100 by the end of that year.

Both supply and demand factors are pushing oil prices higher, Rubin’s report says. “The devastation to both oilfields and oil industry infrastructure from Hurricane Katrina will not only impact current oil production but future production as well.”

“The full economic impact of expected oil price increases is difficult to gauge,” Rubin says. “At a minimum, the economic drag from higher energy prices should quickly cap rising short-term interest rates in both Canada and the United States, apart from possibly one more rate hike on either side of the border.”

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Empire signs loan distribution deal with B2B Trust

(September 8, 2005) Empire Financial Group announced today that it will use the services of B2B Trust to provide segregated fund loans to clients who want to borrow to invest in their non-registered Empire insurance policies.

Under the terms of the distribution deal, B2B will provide a comprehensive suite of loan options, including the 100% Accelerator Loan, which offers approved clients up to $100,000 with no money down, no margin call and interest-only payments.

“The agreement with B2B Trust complements rather than replaces Empire’s long-time partnership with TD Investment Lending Services,” says Empire’s Jim Gibson. “Our clients and business partners want maximum choice and flexibility in terms of lender, loan and payment options. With these two premier providers and Empire’s proven performance as a value manager, we’re delivering an effective wealth accumulation strategy.”

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Survey names TD top Canadian bank

(September 8, 2005) An independent survey of Canadians has ranked TD Canada Trust as the top bank in Canada, based on factors such as customer service and online banking.

“We’re honoured to have been recognized for our achievements in this, our 150th anniversary year,” said Ed Clark, president and chief executive officer of TD Bank Financial Group. “These awards reflect the hard work and dedication of our employees and their commitment to delivering long term shareholder value.”

The survey was conducted between July 11 to August 24, 2005 by market research firm Synovate. Known as the Customer Service Index, the survey has been conducted by Synovate annually since 1987.

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TSX Datalinx delivers bond index data

(September 8, 2005) Standard & Poor’s has announced market data for the S&P/TSX Canadian Bond Index is now available from TSX Datalinx, giving subscribers access to daily risk and return files for over 300 standard sub-indices comprising the index, as well as information about all the bonds in the index portfolio.

“TSX Datalinx will distribute data for the new index,” said Eric Sinclair, senior vice president at TSX Datalinx. “Working with Standard & Poor’s on this index reinforces our commitment to the fixed income market in Canada.”

TSX Datalinx offers access to the competitively priced S&P/TSX Canadian Bond Index data by email, FTP and via a user-friendly web interface.

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Fidelity teams up with McCartney

(September 7, 2005) Fidelity Investments apparently believes in yesterday, signing up Paul McCartney for its latest ad campaign, which will trace the musician’s career through various stages of his life in a 30-second TV spot.

“Generations have grown up with Paul McCartney,” said Robert Reynolds, vice chairman and chief operating officer, Fidelity Investments. “People continue to be inspired by how he approaches life — with confidence, innovation and a long-term view. He’s the perfect partner for Fidelity to help investors transition to the next chapter in their lives.”

The television ads will hit the airwaves on Thursday night. Fidelity is also sponsoring the pop icon’s latest concert tour, as he takes his band on the run to promote his twentieth studio album, “Chaos and Creation in the Backyard.”

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DBRS opens shop in London

(September 7, 2005) Dominion Bond Rating Service has opened its London office today, marking the ratings agency’s first foray into Europe. DBRS Europe will focus initially on European financial institutions and structured finance ratings and analysis.

“Opening our London office is a pivotal step in DBRS’s efforts to expand its geographic footprint and strengthen our presence internationally,” says Walter Schroeder, president of DBRS. “The addition of a London office will create important synergies for our North American, European, and multi-national investors.”

The London shop will be headed by Sam Theodore, who joins DBRS from Moody’s. Over his 11 year career at Moody’s, Theodore served as managing director for European bank ratings and global banking coordinator.

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Scotia announces executive shuffle

(September 7, 2005) Scotiabank has announced the appointment of Brian Porter as chief risk officer. Porter is currently Deputy Chairman, Scotia Capital, and Head of Canadian Capital Structuring. He will replace Warren Walker, currently the bank’s executive vice president, global risk management.

The bank also named Stephen McDonald and John Schumacher as co-heads for Scotia Capital. All three appointments take effect November 1, 2005.

“This new structure reflects the significant depth of leadership talent at Scotia Capital and the specific expertise of each of these officers,” said Rick Waugh, president and CEO of Scotiabank. “Both Steve and John are well respected for their knowledge of Canadian and international corporate lending and capital markets, and their commitment to client service.”

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Abria appoints vice-president

(September 6, 2005) Hedge fund firm Abria Alternative Investments has appointed Brian Kralik, a CA and CFA, as vice-president finance.

Kralik comes to Abria from the Ontario Teachers Pension Plan, where he was managed Teachers’ investment finance operations, including $12 billion in private capital and alternative investments.

He also spent five years at accounting firm KPMG, providing audit service to Canadian financial institutions.

“Mr. Kralik’s experience in managing the day-to-day operations of a large portfolio of various private and alternative investments at one of the world’s leading institutional investors will be a great benefit to Abria and our investors,” said Abria founder Henry Kneis. “As VP Finance, Brian will focus on managing Abria’s finance and investment operations and assisting in the operational due diligence of existing and prospective fund managers.”

Abria also announced today that it is in the process of completing the manager selection, due diligence and structuring of three new alternative products: a leveraged version of its existing market neutral fund of hedge funds, a diversified energy focused fund of hedge funds and a specialty finance investment fund.

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Pension consulting firm converts to income trust

(September 6, 2005) Pension and benefits consulting firm Morneau Sobeco has filed a preliminary prospectus for a proposed initial public offering of units of the Morneau Sobeco Income Fund.

The fund will indirectly acquire and hold a majority interest in the business currently conducted through Morneau Sobeco and its subsidiaries, the firm said in announcing the trust last week.

BMO Nesbitt Burns and National Bank Financial will be co-lead managers on the fund. The underwriting syndicate will also include CIBC World Markets, TD Securities, RBC Dominion Securities and Scotia Capital.

Morneau Sobeco is Canada’s largest Canadian owned pension and benefits consulting and outsourcing firm, with nearly 1,000 employees in 11 cities in North America.

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Former broker fined $10,000

(September 6, 2005) A former broker who was once bankrupt has been fined $10,000 by the IDA for buying U.S. securities that were not approved in his home province of Alberta. The infractions took place between October 1999 and March 2000 when Gus Dimas worked as a registered representative in Merrill Lynch’s Calgary office.

Dimas and eight other individuals purchased 1,000 shares of ThinWeb, a U.S. firm which is now defunct. After leaving Merrill, he worked at several other firms but has been out of the industry for more than a year, pending the result of the IDA probe.

As a further condition of re-registration, Dimas must also re-write the Conduct and Practices Handbook examination, be subject to a four-month period of close supervision and pay $1,500 in costs.

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Consumer confidence slumps

(September 6, 2005) Canadian consumer confidence has fallen to its lowest level in more than a year, according to The Conference Board of Canada.

Canadians are also more pessimistic about family finances, job market prospects, and big ticket spending, the board found. The survey was conducted between August 11 and August 16.

“Consumer spending has been driving economic growth for much of 2005, but this is the first significant decline in confidence this year,” said Pedro Antunes, director of economic forecasting. “It appears that high energy costs and looming interest rate hikes are starting to worry consumers. If confidence continues to drop over the next few months, we will start to see an impact on domestic spending.”

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