Briefly: “Arrow Hedge rebrands funds” and more news

Arrow Hedge Partners is rebranding its funds and fund families in an effort to better showcase the range and specific makeup of its products. The changes include new fund names that will highlight the portfolio management firm running the funds. To that end, most of the 14 single-manager fund names have been simplified by removing […]

By Staff | November 2, 2010 | Last updated on November 2, 2010
7 min read
  • The Respondent is permanently prohibited from conducting securities related business while in the employ of or associated with any Member of the MFDA;
  • The Respondent shall pay a fine in the amount of $120,000; and
  • The Respondent shall pay costs to the MFDA in the amount of $10,000.

A copy of the Notice of Hearing is available here.

– Staff

• • •

MFDA issues Notice of Settlement Hearing regarding Luigi Ciardullo

The MFDA today announced that it has issued a Notice of Settlement Hearing regarding the presentation, review and consideration of a proposed settlement agreement by a Hearing Panel of the MFDA’s Central Regional Council.

The settlement agreement will be between Staff of the MFDA and Luigi Francesco Ciardullo and involves matters for which Mr. Ciardullo may be disciplined by a Hearing Panel pursuant to MFDA By-laws.

The subject matter of the proposed settlement agreement concerns allegations that between February 2006 and March 2008, Mr. Ciardullo accepted monies from one individual who instructed him to invest the monies on her behalf, and Mr. Ciardullo then provided the monies to another individual to invest on the former individual’s behalf, without the former individual’s knowledge and approval.

The settlement hearing is scheduled to commence at 10:00 a.m. (Eastern) on November 26, 2010 in the hearing room located at the MFDA offices, 121 King Street West, Suite 1000, Toronto, Ontario and will be open to the public, except as may be required for the protection of confidential matters.

A copy of the Notice of Settlement Hearing is available here.

– Staff

• • •

IIROC announces disciplinary hearing for Alain Béland

A hearing has been scheduled before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) to consider whether the panel should accept a settlement agreement between IIROC staff and Alain Béland.

The agreement concerns allegations that Mr. Béland effected trades directly with insiders of public companies on his own behalf and on behalf of clients, failed to ensure that investment recommendations were suitable with regard to client objectives, personally compensated clients without the knowledge of the firm and failed in his duty to protect the public in connection with a client’s trades that were or could have been an indication of market manipulation.

The hearing will not be open to the public, but will become open in the event the panel accepts the agreement. If the agreement is accepted, the panel’s decision and reasons will be made available at www.iiroc.ca.

Hearing Date: 10 a.m., November 16, 2010 Location: 5 Place Ville-Marie, Suite 1550, Montréal

Specifically, the agreement concerns allegations that Mr. Béland:

• violated IIROC Rule 29.1 when he engaged in conduct unbecoming and detrimental to the public interest and/or failed in his duty to protect the public; and when he breached Standards A and C of the Conduct and Practices Handbook by failing to observe high standards of ethics and conduct.

• violated IIROC Rules 1300.1(a) and 1300.1(p) when he failed to ensure investment recommendations to his clients were consistent with their objectives and risk tolerance.

The alleged violations occurred as follows, when Mr. Béland:

• facilitated the off-book purchase of shares in a public company by a client, who in fact was his spouse, directly from insiders, without prior disclosure of the proposed trade to the firm.

• failed to ensure that investment recommendations regarding three of his clients were consistent with their investment objectives and risk tolerance.

• recommended certain securities, despite the fact he, his spouse and representatives on his team held these securities in personal accounts and had purchased them through Mr. Béland, who had a privileged connection with the insiders of these companies, who were also clients of the team, and that, at December 31, 2005, 248 of the team’s accounts held approximately 18.5% of the outstanding shares in one company and 128 accounts held approximately 1.5% of the outstanding shares in another.

• took part in a private placement in a public company for his own account, without prior disclosure of the proposed trade to the firm.

• arranged for the participation of a client in an over-the-counter investment in the stock of a certain company, without prior disclosure of the proposed trade to the firm.

• falsely represented that the assignment of shares in a firm to a certain client had been completed free of charge, when in fact it was completed for $6,000.

• allowed a client to make an over-the counter investment in a stock through the company’s president, by way of an exchange in her RRSP account, without prior disclosure of the proposed trade to the firm.

• failed to protect the public in connection with numerous trades in certain securities by a client who happened to be a consultant for these companies, when he knew or should have known that the trades were or could have been an indication of market manipulation.

• arranged with another representative on his team for the settlement of the complaints of these three clients by compensating them, all without the knowledge of the firm.

• purchased securities of a public company directly from a client with insider ties to that company, without prior disclosure of the proposed trade to the firm.

• took part in a private placement in a public company for his own account, without prior disclosure of the proposed trade to the firm.

The Investment Dealers Association of Canada (now part of IIROC) began its investigation into Mr. Béland’s conduct on November 10, 2006. The violations are alleged to have occurred between 2004 and 2006, while he was a Registered Representative with the Brossard Branch of Desjardins Securities Inc. Mr. Béland is no longer a registrant with an IIROC-regulated firm.

– Staff

• • •

Aston Hill announces asset manager changes

Aston Hill Financial has announced changes to its lineup of investment managers, including the departure of Ravi Sood, a long-time portfolio manager with Navina Asset Management, which was bought by Aston Hill in August.

The company also announced the appointment of Jeffrey Burchell, as a new portfolio manager to the team, effective Nov. 15, 2010. Burchell is an experienced long-short equity manager and most recently worked for Polar Securities, where he focused on a U.S. and Canadian market-neutral mandate.

He will assume lead portfolio manager duties on the Navina Opportunities Fund, the Lawrence Partners Fund and the Lawrence Enterprise Fund, which were previously managed by Sood.

The company also announced that Andrew LB Hamlin will be assuming lead portfolio management duties on the Global Agribusiness Trust, the TOROS Fund and the Navina Global Resource Fund.

– Steven Lamb

• • •

CRA sets 2011 maximum pensionable earnings

The Canada Revenue Agency has announced that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2011 will be $48,300, an increase of $1,100 from 2010.

Contributors who earn more than $48,300 in 2011 are not required or permitted to make additional contributions to the CPP.

The basic exemption amount for 2011 remains at $3,500. Individuals who earn less than that amount do not have to contribute to the CPP.

The employee and employer contribution rates for 2011 will remain unchanged at 4.95%, and the self-employed contribution rate will remain unchanged at 9.9%.

The maximum employer and employee contribution to the plan for 2011 will be $2,217.60, and the maximum self-employed contribution will be $4,435.20. The maximums in 2010 were $2,163.15 and $4,326.30, respectively.

– Steven Lamb

(11/02/10)

Advisor.ca staff

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.

Arrow Hedge Partners is rebranding its funds and fund families in an effort to better showcase the range and specific makeup of its products.

The changes include new fund names that will highlight the portfolio management firm running the funds. To that end, most of the 14 single-manager fund names have been simplified by removing the “Arrow” designation. For example, the Arrow Enso Global Fund is now named Enso Global.

“We wanted to showcase these managers’ independence and distinct investment styles,” said Mark Purdy, managing director and chief investment officer of Arrow Hedge Partners. “All our single managers are held to Arrow’s conservative risk exposure limits: low leverage, high liquidity and 100% position-level transparency. All have been carefully selected based on their credentials, track record and area of expertise. Accredited investors can access these specific strategies directly to fit their own risk tolerance.”

The single-manager hedge funds will be grouped under the Global Series, North American Series and Income Series.

Arrow also offers four funds of hedge funds, which will be offered under the Portfolio Series brand.

Full details of the rebranding are available on the Arrow Hedge Partners website.

– Steven Lamb

• • •

MFDA Hearing Panel makes findings against Meiz Majdoub

A disciplinary hearing in the matter of Meiz Mohammed Majdoub (the “Respondent”) was held on October 27, 2010 in Toronto, Ontario before a three-person Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).

The Hearing Panel found that Allegations #1 and #2 in the Notice of Hearing, set out below, had been established:

Allegation #1: Between January 2005 and September 2005, the Respondent engaged in securities related business that was not carried on for the account of the Member and through the facilities of the Member by selling or facilitating the sale of approximately $840,000 of units in investment products that were not approved for sale by the Member to 19 individuals, contrary to:

(a) MFDA Rules 1.1.1 and 2.1.1; and (b) the policies and procedures of the Member and MFDA Rules 1.1.2 and 2.5.1.

Allegation #2: Between December 2004 and January 2006, the Respondent engaged in a dual occupation which was not disclosed to and approved by the Member or securities regulators by operating companies to raise capital and provide sales and administrative support for a capital raising entity, contrary to:

(a) MFDA Rules 1.2.1(d) and 2.1.1; and (b) The policies and procedure of the Member and MFDA Rules 1.1.2 and 2.5.1.

The Hearing Panel made the following orders at the conclusion of the hearing and advised that it would issue written reasons for its decision in due course:

  • The Respondent is permanently prohibited from conducting securities related business while in the employ of or associated with any Member of the MFDA;
  • The Respondent shall pay a fine in the amount of $120,000; and
  • The Respondent shall pay costs to the MFDA in the amount of $10,000.

A copy of the Notice of Hearing is available here.

– Staff

• • •

MFDA issues Notice of Settlement Hearing regarding Luigi Ciardullo

The MFDA today announced that it has issued a Notice of Settlement Hearing regarding the presentation, review and consideration of a proposed settlement agreement by a Hearing Panel of the MFDA’s Central Regional Council.

The settlement agreement will be between Staff of the MFDA and Luigi Francesco Ciardullo and involves matters for which Mr. Ciardullo may be disciplined by a Hearing Panel pursuant to MFDA By-laws.

The subject matter of the proposed settlement agreement concerns allegations that between February 2006 and March 2008, Mr. Ciardullo accepted monies from one individual who instructed him to invest the monies on her behalf, and Mr. Ciardullo then provided the monies to another individual to invest on the former individual’s behalf, without the former individual’s knowledge and approval.

The settlement hearing is scheduled to commence at 10:00 a.m. (Eastern) on November 26, 2010 in the hearing room located at the MFDA offices, 121 King Street West, Suite 1000, Toronto, Ontario and will be open to the public, except as may be required for the protection of confidential matters.

A copy of the Notice of Settlement Hearing is available here.

– Staff

• • •

IIROC announces disciplinary hearing for Alain Béland

A hearing has been scheduled before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) to consider whether the panel should accept a settlement agreement between IIROC staff and Alain Béland.

The agreement concerns allegations that Mr. Béland effected trades directly with insiders of public companies on his own behalf and on behalf of clients, failed to ensure that investment recommendations were suitable with regard to client objectives, personally compensated clients without the knowledge of the firm and failed in his duty to protect the public in connection with a client’s trades that were or could have been an indication of market manipulation.

The hearing will not be open to the public, but will become open in the event the panel accepts the agreement. If the agreement is accepted, the panel’s decision and reasons will be made available at www.iiroc.ca.

Hearing Date: 10 a.m., November 16, 2010 Location: 5 Place Ville-Marie, Suite 1550, Montréal

Specifically, the agreement concerns allegations that Mr. Béland:

• violated IIROC Rule 29.1 when he engaged in conduct unbecoming and detrimental to the public interest and/or failed in his duty to protect the public; and when he breached Standards A and C of the Conduct and Practices Handbook by failing to observe high standards of ethics and conduct.

• violated IIROC Rules 1300.1(a) and 1300.1(p) when he failed to ensure investment recommendations to his clients were consistent with their objectives and risk tolerance.

The alleged violations occurred as follows, when Mr. Béland:

• facilitated the off-book purchase of shares in a public company by a client, who in fact was his spouse, directly from insiders, without prior disclosure of the proposed trade to the firm.

• failed to ensure that investment recommendations regarding three of his clients were consistent with their investment objectives and risk tolerance.

• recommended certain securities, despite the fact he, his spouse and representatives on his team held these securities in personal accounts and had purchased them through Mr. Béland, who had a privileged connection with the insiders of these companies, who were also clients of the team, and that, at December 31, 2005, 248 of the team’s accounts held approximately 18.5% of the outstanding shares in one company and 128 accounts held approximately 1.5% of the outstanding shares in another.

• took part in a private placement in a public company for his own account, without prior disclosure of the proposed trade to the firm.

• arranged for the participation of a client in an over-the-counter investment in the stock of a certain company, without prior disclosure of the proposed trade to the firm.

• falsely represented that the assignment of shares in a firm to a certain client had been completed free of charge, when in fact it was completed for $6,000.

• allowed a client to make an over-the counter investment in a stock through the company’s president, by way of an exchange in her RRSP account, without prior disclosure of the proposed trade to the firm.

• failed to protect the public in connection with numerous trades in certain securities by a client who happened to be a consultant for these companies, when he knew or should have known that the trades were or could have been an indication of market manipulation.

• arranged with another representative on his team for the settlement of the complaints of these three clients by compensating them, all without the knowledge of the firm.

• purchased securities of a public company directly from a client with insider ties to that company, without prior disclosure of the proposed trade to the firm.

• took part in a private placement in a public company for his own account, without prior disclosure of the proposed trade to the firm.

The Investment Dealers Association of Canada (now part of IIROC) began its investigation into Mr. Béland’s conduct on November 10, 2006. The violations are alleged to have occurred between 2004 and 2006, while he was a Registered Representative with the Brossard Branch of Desjardins Securities Inc. Mr. Béland is no longer a registrant with an IIROC-regulated firm.

– Staff

• • •

Aston Hill announces asset manager changes

Aston Hill Financial has announced changes to its lineup of investment managers, including the departure of Ravi Sood, a long-time portfolio manager with Navina Asset Management, which was bought by Aston Hill in August.

The company also announced the appointment of Jeffrey Burchell, as a new portfolio manager to the team, effective Nov. 15, 2010. Burchell is an experienced long-short equity manager and most recently worked for Polar Securities, where he focused on a U.S. and Canadian market-neutral mandate.

He will assume lead portfolio manager duties on the Navina Opportunities Fund, the Lawrence Partners Fund and the Lawrence Enterprise Fund, which were previously managed by Sood.

The company also announced that Andrew LB Hamlin will be assuming lead portfolio management duties on the Global Agribusiness Trust, the TOROS Fund and the Navina Global Resource Fund.

– Steven Lamb

• • •

CRA sets 2011 maximum pensionable earnings

The Canada Revenue Agency has announced that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2011 will be $48,300, an increase of $1,100 from 2010.

Contributors who earn more than $48,300 in 2011 are not required or permitted to make additional contributions to the CPP.

The basic exemption amount for 2011 remains at $3,500. Individuals who earn less than that amount do not have to contribute to the CPP.

The employee and employer contribution rates for 2011 will remain unchanged at 4.95%, and the self-employed contribution rate will remain unchanged at 9.9%.

The maximum employer and employee contribution to the plan for 2011 will be $2,217.60, and the maximum self-employed contribution will be $4,435.20. The maximums in 2010 were $2,163.15 and $4,326.30, respectively.

– Steven Lamb

(11/02/10)

Arrow Hedge Partners is rebranding its funds and fund families in an effort to better showcase the range and specific makeup of its products.

The changes include new fund names that will highlight the portfolio management firm running the funds. To that end, most of the 14 single-manager fund names have been simplified by removing the “Arrow” designation. For example, the Arrow Enso Global Fund is now named Enso Global.

“We wanted to showcase these managers’ independence and distinct investment styles,” said Mark Purdy, managing director and chief investment officer of Arrow Hedge Partners. “All our single managers are held to Arrow’s conservative risk exposure limits: low leverage, high liquidity and 100% position-level transparency. All have been carefully selected based on their credentials, track record and area of expertise. Accredited investors can access these specific strategies directly to fit their own risk tolerance.”

The single-manager hedge funds will be grouped under the Global Series, North American Series and Income Series.

Arrow also offers four funds of hedge funds, which will be offered under the Portfolio Series brand.

Full details of the rebranding are available on the Arrow Hedge Partners website.

– Steven Lamb

• • •

MFDA Hearing Panel makes findings against Meiz Majdoub

A disciplinary hearing in the matter of Meiz Mohammed Majdoub (the “Respondent”) was held on October 27, 2010 in Toronto, Ontario before a three-person Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).

The Hearing Panel found that Allegations #1 and #2 in the Notice of Hearing, set out below, had been established:

Allegation #1: Between January 2005 and September 2005, the Respondent engaged in securities related business that was not carried on for the account of the Member and through the facilities of the Member by selling or facilitating the sale of approximately $840,000 of units in investment products that were not approved for sale by the Member to 19 individuals, contrary to:

(a) MFDA Rules 1.1.1 and 2.1.1; and (b) the policies and procedures of the Member and MFDA Rules 1.1.2 and 2.5.1.

Allegation #2: Between December 2004 and January 2006, the Respondent engaged in a dual occupation which was not disclosed to and approved by the Member or securities regulators by operating companies to raise capital and provide sales and administrative support for a capital raising entity, contrary to:

(a) MFDA Rules 1.2.1(d) and 2.1.1; and (b) The policies and procedure of the Member and MFDA Rules 1.1.2 and 2.5.1.

The Hearing Panel made the following orders at the conclusion of the hearing and advised that it would issue written reasons for its decision in due course:

  • The Respondent is permanently prohibited from conducting securities related business while in the employ of or associated with any Member of the MFDA;
  • The Respondent shall pay a fine in the amount of $120,000; and
  • The Respondent shall pay costs to the MFDA in the amount of $10,000.

A copy of the Notice of Hearing is available here.

– Staff

• • •

MFDA issues Notice of Settlement Hearing regarding Luigi Ciardullo

The MFDA today announced that it has issued a Notice of Settlement Hearing regarding the presentation, review and consideration of a proposed settlement agreement by a Hearing Panel of the MFDA’s Central Regional Council.

The settlement agreement will be between Staff of the MFDA and Luigi Francesco Ciardullo and involves matters for which Mr. Ciardullo may be disciplined by a Hearing Panel pursuant to MFDA By-laws.

The subject matter of the proposed settlement agreement concerns allegations that between February 2006 and March 2008, Mr. Ciardullo accepted monies from one individual who instructed him to invest the monies on her behalf, and Mr. Ciardullo then provided the monies to another individual to invest on the former individual’s behalf, without the former individual’s knowledge and approval.

The settlement hearing is scheduled to commence at 10:00 a.m. (Eastern) on November 26, 2010 in the hearing room located at the MFDA offices, 121 King Street West, Suite 1000, Toronto, Ontario and will be open to the public, except as may be required for the protection of confidential matters.

A copy of the Notice of Settlement Hearing is available here.

– Staff

• • •

IIROC announces disciplinary hearing for Alain Béland

A hearing has been scheduled before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) to consider whether the panel should accept a settlement agreement between IIROC staff and Alain Béland.

The agreement concerns allegations that Mr. Béland effected trades directly with insiders of public companies on his own behalf and on behalf of clients, failed to ensure that investment recommendations were suitable with regard to client objectives, personally compensated clients without the knowledge of the firm and failed in his duty to protect the public in connection with a client’s trades that were or could have been an indication of market manipulation.

The hearing will not be open to the public, but will become open in the event the panel accepts the agreement. If the agreement is accepted, the panel’s decision and reasons will be made available at www.iiroc.ca.

Hearing Date: 10 a.m., November 16, 2010 Location: 5 Place Ville-Marie, Suite 1550, Montréal

Specifically, the agreement concerns allegations that Mr. Béland:

• violated IIROC Rule 29.1 when he engaged in conduct unbecoming and detrimental to the public interest and/or failed in his duty to protect the public; and when he breached Standards A and C of the Conduct and Practices Handbook by failing to observe high standards of ethics and conduct.

• violated IIROC Rules 1300.1(a) and 1300.1(p) when he failed to ensure investment recommendations to his clients were consistent with their objectives and risk tolerance.

The alleged violations occurred as follows, when Mr. Béland:

• facilitated the off-book purchase of shares in a public company by a client, who in fact was his spouse, directly from insiders, without prior disclosure of the proposed trade to the firm.

• failed to ensure that investment recommendations regarding three of his clients were consistent with their investment objectives and risk tolerance.

• recommended certain securities, despite the fact he, his spouse and representatives on his team held these securities in personal accounts and had purchased them through Mr. Béland, who had a privileged connection with the insiders of these companies, who were also clients of the team, and that, at December 31, 2005, 248 of the team’s accounts held approximately 18.5% of the outstanding shares in one company and 128 accounts held approximately 1.5% of the outstanding shares in another.

• took part in a private placement in a public company for his own account, without prior disclosure of the proposed trade to the firm.

• arranged for the participation of a client in an over-the-counter investment in the stock of a certain company, without prior disclosure of the proposed trade to the firm.

• falsely represented that the assignment of shares in a firm to a certain client had been completed free of charge, when in fact it was completed for $6,000.

• allowed a client to make an over-the counter investment in a stock through the company’s president, by way of an exchange in her RRSP account, without prior disclosure of the proposed trade to the firm.

• failed to protect the public in connection with numerous trades in certain securities by a client who happened to be a consultant for these companies, when he knew or should have known that the trades were or could have been an indication of market manipulation.

• arranged with another representative on his team for the settlement of the complaints of these three clients by compensating them, all without the knowledge of the firm.

• purchased securities of a public company directly from a client with insider ties to that company, without prior disclosure of the proposed trade to the firm.

• took part in a private placement in a public company for his own account, without prior disclosure of the proposed trade to the firm.

The Investment Dealers Association of Canada (now part of IIROC) began its investigation into Mr. Béland’s conduct on November 10, 2006. The violations are alleged to have occurred between 2004 and 2006, while he was a Registered Representative with the Brossard Branch of Desjardins Securities Inc. Mr. Béland is no longer a registrant with an IIROC-regulated firm.

– Staff

• • •

Aston Hill announces asset manager changes

Aston Hill Financial has announced changes to its lineup of investment managers, including the departure of Ravi Sood, a long-time portfolio manager with Navina Asset Management, which was bought by Aston Hill in August.

The company also announced the appointment of Jeffrey Burchell, as a new portfolio manager to the team, effective Nov. 15, 2010. Burchell is an experienced long-short equity manager and most recently worked for Polar Securities, where he focused on a U.S. and Canadian market-neutral mandate.

He will assume lead portfolio manager duties on the Navina Opportunities Fund, the Lawrence Partners Fund and the Lawrence Enterprise Fund, which were previously managed by Sood.

The company also announced that Andrew LB Hamlin will be assuming lead portfolio management duties on the Global Agribusiness Trust, the TOROS Fund and the Navina Global Resource Fund.

– Steven Lamb

• • •

CRA sets 2011 maximum pensionable earnings

The Canada Revenue Agency has announced that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2011 will be $48,300, an increase of $1,100 from 2010.

Contributors who earn more than $48,300 in 2011 are not required or permitted to make additional contributions to the CPP.

The basic exemption amount for 2011 remains at $3,500. Individuals who earn less than that amount do not have to contribute to the CPP.

The employee and employer contribution rates for 2011 will remain unchanged at 4.95%, and the self-employed contribution rate will remain unchanged at 9.9%.

The maximum employer and employee contribution to the plan for 2011 will be $2,217.60, and the maximum self-employed contribution will be $4,435.20. The maximums in 2010 were $2,163.15 and $4,326.30, respectively.

– Steven Lamb

(11/02/10)