Briefly: “Counsel offers new income portfolio” and more news

Counsel Portfolio Services has launched Counsel Managed Yield Portfolio, a tactically managed, diversified income product designed to provide investors with potentially higher yields than they might expect from traditional income investments.

“With a broader range of income solutions, we are giving advisors even more flexibility to manage the income needs of their clients,” said Sam Febbraro, Counsel’s president and CEO.

The portfolio will invest in a variety of fixed income securities including high yield fixed income, global fixed income, Canadian dividend equities and global real estate securities.

The portfolio will include the following asset managers: PanAgora Asset Management Inc., TD Asset Management Inc., Mackenzie Financial Corporation, Franklin Templeton Investments, Leon Frazer & Associates Inc., and FSX Securities Canada Inc.

Counsel also announced an enhanced portfolio design and asset allocation structure for Counsel Conservative Portfolio, Counsel Balanced Portfolio, Counsel Growth Portfolio and Counsel All Equity Portfolio. The asset allocation adjustments are supported by the capital market assumptions research and asset class return projections provided by Ibbotson Associates.

– Steven Lamb

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IIROC announces penalty for Hector Wong

A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has permanently suspended and barred Hector Wong from further registration in any capacity with IIROC. The penalty follows the panel’s decision in which they found that Mr. Wong misappropriated funds from his employer through inappropriate trading of US treasury bills, contrary to IIROC Rule 29.1.

In issuing the penalty, the panel also imposed a fine of $100,000 and ordered Mr. Wong to pay $25,000 in costs.

The panel’s Reasons for Decision were issued October 29, 2010 and are available on the IIROC website.

In an earlier hearing held on June 16, 2010, the panel found Mr. Wong misappropriated funds from his employer by purchasing several US treasury bills in his account from his firm’s inventory account. The panel found that the treasury bills’ prices were inappropriately low and had been set deliberately by Mr. Wong. When the US treasury bills matured they generated profits in two of his personal accounts that were inflated due to the mispricing of the purchases.

In the Reasons for Decision from the penalty hearing, dated October 29, 2010, the panel stated that Mr. Wong’s actions were “intentional, deceitful, and intended to transfer to his account funds that did not belong to him. He knew what he was doing and the consequences of his actions.” The panel also stated, “A clear message must be sent to the industry and to the respondent that misappropriation is a serious matter. Anything less than a permanent ban in this case would undermine industry expectations and imperil the trust and confidence in securities markets that is shaken when this kind of misappropriation occurs.”

The violations occurred in or about September to December 2006, when Mr. Wong was an Officer (Trading, Resident) with the Toronto branch of Hampton Securities Limited, an IIROC-regulated firm. IIROC began the investigation into Mr. Wong’s conduct on May 29, 2007. He is no longer registered with an IIROC-regulated firm.

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IIROC sets hearing for Ronald David Stoneburg

A hearing has been scheduled before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC), to hear evidence and submissions in the matter of Ronald David Stoneburg.

The hearing concerns allegations that Mr. Stoneburg misappropriated in excess of $350,000 from several clients and forged the name of one client on a cheque.

The hearing is open to the public, unless the panel orders otherwise. The decision of the panel will be made available at www.iiroc.ca.

Hearing Date: 10 am, November 25, 2010 Location: Legal Transcript Services, Suite 1102 – 390 Bay Street, Toronto

Specifically the allegations are that Mr. Stoneburg violated IIROC IIROC Rule 29.1 by engaging in business conduct or practice which is unbecoming or detrimental to the public interest when he:

• misappropriated approximately $150,000 from two clients, a retired couple who intended to buy an annuity, while he was employed with Canaccord Capital Corp.;

• misappropriated in excess of $200,000 from approximately 11 clients by either endorsing their cheques to himself without those clients’ knowledge or consent, or by cashing cheques addressed to him that were supposed to be used to purchase client investments, while he was employed with yourCFO Advisory Group Inc.; and

• forged the name of a client thereby endorsing the client’s cheque to himself, also while he was employed with yourCFO Advisory Group.

IIROC formally initiated the investigation into Mr. Stoneburg’s conduct on May 14, 2009. The alleged contraventions occurred between 2006 and 2009 when Mr. Stoneburg was a Registered Representative first with Canaccord in Ottawa and, subsequently, with yourCFO Advisory Group, both IIROC regulated-firms. Mr. Stoneburg is no longer a registrant with an IIROC-regulated firm.

The Notice of Hearing is available here.

(11/12/10)