Briefly: “Credit unions promote activism” and more news

Today is International Credit Union Day and credit unions are promoting the differences they make in the communities they serve.

A new survey shows that Canadian credit unions contributed nearly $37.5 million to local community projects last year. The donations sponsored arts and culture, sport activities, educational programs and facilities, economic development, healthcare, environmental causes and disaster relief, social services, and other local community events and initiatives.

Nearly $1.3 million was given to provide scholarships and bursaries while more than $4.5 million went to charitable foundations and more than $3.4 million in financial services to community organizations.

“Community involvement and support are at the core of the credit union difference,” said David Phillips, president and CEO of Credit Union Central of Canada. “Credit unions have a long history of supporting communities and the survey results show that this commitment remains strong, even during tough economic times.”

The support doesn’t end with monetary donations either: 75% of survey respondents reported that their employees volunteered during their unpaid time off in 2009. More than half of the credit unions surveyed also said their employees participated in community activities as part of their paid work. More than 200,000 hours were volunteered on paid time.

There are 186 million credit union members around the world, with 54,000 credit unions in 97 countries.

– John Powell

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DIY investors get easier access to bonds

Scotia iTRADE is making it easier for self-directed investors to participate in the bond market, rolling out a commission-style pricing on fixed income trades.

The “Buck a Bond” pricing charges $1 per $1,000 face value, with a minimum commission of $19.99, to a maximum of $250.

“Self-directed investors recognize that fixed income can be a key component of a well-diversified portfolio, yet not all invest in them due to limited access or offerings,” said Bob Grant, managing director, online brokerage, Scotiabank. “Providing greater value and improved access to fixed income securities trading and information will enable our customers to consider including fixed income in their overall investment strategy.”

Scotia iTRADE offers an inventory of over 2,300 fixed income securities, including corporate, municipal, provincial and federal debt.

– Steven Lamb

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IIROC sets date for Blackmont Capital, Duke penalty hearing

A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has been scheduled to consider the appropriate penalty for Blackmont Capital Inc. and Dean Shannon Duke.

Hearing Date: November 2, 2010 at 10 a.m. Location: Reportex Agencies Ltd., 925 West Georgia Street, Suite 1010, Vancouver, BC

The penalty hearing is open to the public, unless the panel orders otherwise.

The panel’s decision and reasons on the penalty will be made public at www.iiroc.ca.

In a decision announced in a September 29, 2010 news release, the panel found that Blackmont and Duke violated IIROC rules when they:

• participated in an arrangement which involved payment of commissions to a third party who acted as an “external asset manager” for banks resident in either Switzerland or Liechtenstein, and who placed orders in the accounts of seven clients. Blackmont and Duke did not disclose this arrangement to these clients, which constitutes business conduct detrimental to the public interest, contrary to IIROC Rule 29.1 (formerly IDA Bylaw 29.1) and IIROC Rule 29.6 (formerly IDA By-law 29.6); and
• effected trades in four client accounts based on third-party instructions without having a written trading authorization, contrary to IIROC Rule 200.1(i)(3) [formerly IDA Regulation 200.1(i) (3)].

The panel also found that Blackmont engaged in business conduct detrimental to the public interest, contrary to IIROC Rule 29.1, when it failed to meet the requirements of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations by failing to obtain the following documentation for certain client accounts:

(a) Corporate records which indicated the “power to bind” a corporate client; (b) Signature documentation regarding trading authorization; and/or (c) Identity verification for authorized trading individuals.

All of these violations occurred between January 2003 and October 2007.

The IDA (now part of IIROC) began investigating Blackmont’s conduct on December 10, 2007, and Duke’s conduct on February 1, 2008. The violations occurred when Duke was a Registered Representative with the Vancouver Branch of Blackmont. Duke is no longer registered in any capacity with an IIROC-regulated firm.

Blackmont Capital Inc. is now Macquarie Private Wealth Inc., following a name change on February 1, 2010. The firm was previously named First Associates Investments Inc. before becoming Blackmont Capital Inc. in 2005.

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IIROC announces disciplinary hearing for Savitri Shamseer

A disciplinary hearing has been scheduled before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) to hear evidence in the matter of Savitri Shamseer.

The hearing concerns allegations that Shamseer made discretionary trades in a client account that was not a discretionary account.

Hearing Date: Thursday November 11, 2010, 10:00 am Location: 121 King Street West, Suite 1600, Toronto, IIROC Boardroom 2

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

Specifically, it is alleged Shamseer made 19 discretionary trades in a client’s account without first having the account approved and accepted as a discretionary account, contrary to IDA Regulation 1300.4 (now IIROC ).

The alleged violations occurred between September 2006 and February 2007, while Ms. Shamseer was a Registered Representative at Argosy Securities Inc., an IIROC-regulated firm. The IDA began investigating Shamseer’s conduct on February 6, 2008, after receiving a client complaint. Shamseer is no longer with an IIROC-regulated firm.

(10/21/10)

Staff

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