Briefly: “IIAC calls for Future Leader nominations” and more news

The Investment Industry Association of Canada (IIAC) has announced the launch of the 2010 IIAC Future Leader Scholarship Award competition. Nominations will be accepted from November 29, 2010 to January 31, 2011.

“The IIAC Future Leader Scholarship Award recognizes an employee from one of our member firms,” said Ian Russell, president and CEO, IIAC. “The award goes to an individual who best demonstrates community involvement, leadership, industry achievement and commitment to the Canadian investment industry.”

This is the second year for this prestigious industry competition and this time around, the judging panel includes esteemed professionals such Doug Hall, the past chair of Nova Scotia Business Inc., and Joe Oliver, the past president and CEO of the IDA. The award recipient receives funding to attend one session of SIFMA’s education program, the Securities Industry Institute, at the Wharton School of Business in Philadelphia in March 2011. The prize, valued at approximately $10,000, includes cost of tuition, transportation to and from Philadelphia, accommodation during the trip and $1,000 cash.

Participants of the SII program examine current thinking in economics, finance, management, marketing, professional development and operations. The course runs from March 6 to 11, 2011.

Last year’s winner was Steven Brophy, vice-president, managing director and branch manager, BMO Nesbitt Burns. “I was thrilled to have won this prestigious award,” said Brophy. “In addition to receiving a fully paid trip to the Wharton School of Business in Philadelphia, I was also able to network with many respected leaders of the business community while learning from some of the brightest minds in our industry.”

Applicants must be a full time employee of an IIAC member firm and be employed by an IIAC member firm at the time the course is offered in March 2011. All applications must be submitted to the IIAC via email at membership@iiac.ca by 5:00 p.m. on Monday, January 31, 2011. A panel of judges will review each entry during the first week of February 2011.

AGF launches Emerging Markets Funds

AGF has announced the launch of AGF Emerging Markets Bond Fund and AGF Emerging Markets Balanced Fund, offering two opportunities for investors who want exposure to emerging markets growth, but do not have the appetite for pure equities.

“As emerging markets evolve into a core category of tomorrow, we believe it is critical to give investors access to these markets today,” said Gordon Forrester, executive vice-president, marketing and product strategy and development for AGF Investments Inc.

The AGF Emerging Markets Bond Fund’s investment objective is to maximize total returns by investing primarily in fixed-income securities of emerging market issuers. Members of the AGF fixed-income team, which has over 10 years experience in emerging market bonds, will lead management of the fund.

“AGF has extensive experience in emerging markets bonds and is one of Canada’s largest investors in emerging markets local currency,” said Martin Hubbes, executive vice-president and chief investment officer.

The AGF Emerging Markets Balanced Fund is a diversified emerging markets fund-of-fund portfolio that will invest primarily in a mix of emerging market equity and fixed income, including AGF Emerging Markets Bond Fund and AGF Emerging Markets Fund, as well as cash and cash equivalents. The fund is one of the first of its kind and will provide above-average long-term total return. The AGF global equities team will lead management.

“As a truly global firm we are a leader in bringing international investing to Canadians,” said Blake C. Goldring, chairman and CEO of AGF Management Limited. “This tradition continues today with the launch of two groundbreaking products that offer investors the opportunity to access emerging markets, while better managing risk through a diversified approach.”

HSBC Funds gets fund merger approval

HSBC Investment Funds has received unitholder approval to merge each of the four HSBC LifeMap MM Portfolios into their equivalent LifeMap Portfolio.

On the effective date of the mergers, holders of Investor Series, Advisor Series, Manager Series and Institutional Series units of each HSBC LifeMap MM Portfolio will receive equivalent units of the HSBC LifeMap Portfolio, and the four separate portfolios will be wound up and terminated.

The mergers were approved by 96%, 99%, 98% and 93%, respectively, of the votes cast at the meetings of the four LifeMap MM Portfolios held on November 26, 2010.

The proposed mergers will be effective on or about December 10, 2010. Unitholders in the HSBC LifeMap MM Portfolios have the right to redeem their units up to the close of business on December 9, 2010, or on the business day immediately preceding the effective date of the mergers.

MFDA approves Partners In Planning settlement

A Settlement Hearing in the matter of Partners In Planning Financial Services Ltd. (the “Respondent”) was held on November 25, 2010 in Regina, Saskatchewan, before a Hearing Panel of the MFDA’s Prairie Regional Council.

The Hearing Panel approved the Settlement Agreement between the Respondent and MFDA Staff, as a consequence of which the Respondent:

• Has paid a fine in the amount of $20,000; • Has paid the costs of the proceeding in the amount of $2,500; • Shall retain an independent consultant at the Respondent’s expense to assist in resolving certain leverage related deficiencies pursuant to the Terms of the Independent Monitor attached to the Settlement Agreement; and • Agrees in the future to comply with all MFDA By-laws, Rules and Policies, and all applicable securities legislation and regulations made thereunder, including MFDA Rules 2.2.1, 2.5.2 and 2.10 and MFDA Policy No. 2.

In the Settlement Agreement, the Respondent admitted to the following contraventions of MFDA Rules prior to April 2010:

• it failed to establish, implement and maintain adequate policies and procedures to supervise leveraged trades and ensure the suitability of leveraging recommendations made by Approved Persons to clients; and • it failed to maintain sufficient records of the supervision of leveraged trading and leveraging recommendations conducted by its Approved Persons, including records of trades reviewed, inquiries made, responses received and resolutions achieved.

The Hearing Panel will issue written reasons for its decision in due course. Copies of the Settlement Agreement and the Hearing Panel’s Order are available on the MFDA website at www.mfda.ca.

– Staff

MFDA accepts Ciardullo settlement

A Settlement Hearing in the matter of Luigi Francesco Ciardullo (the “Respondent”) was held (Friday) in Toronto, Ontario before a Hearing Panel of the MFDA’s Central Regional Council.

The Hearing Panel accepted the Settlement Agreement between the Respondent and MFDA Staff, as a consequence of which the Respondent:

• Has paid a fine in the amount of $10,000; • Has paid costs in the amount of $2,500; • Shall be prohibited from conducting securities related business while in the employ of, or associated with a Member of the MFDA for a period of 3 months commencing November 26, 2010; • Shall in the future comply with all MFDA By-Laws, Rules and Policies, and all applicable securities legislation and regulations made thereunder, including MFDA Rules 1.1.1(a), 2.1.1, and 2.1.4.

In the Settlement Agreement, the Respondent admitted that, contrary to MFDA Rules:

• Between December 2005 and March 15, 2008, the Respondent failed to observe high standards of ethics and conduct in the transaction of business by accepting $150,000 from an individual, PL, to invest on PL’s behalf and then providing monies to another individual, SA, for investment on her behalf, without PL’s knowledge and approval; • Between February 2006 and March 15, 2008, the Respondent engaged in personal financial dealings with a client, PL, which gave rise to an actual or potential conflict of interest between the Respondent and client PL, which the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of client PL; and • Between December 2005 and March 15, 2008, 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, referring or facilitating the investment of $150,000 by PL in an investment owned, managed or arranged by SA or persons unknown.

The Hearing Panel will issue written reasons for its decision in due course. Copies of the Settlement Agreement and the Hearing Panel’s Order are available on the MFDA website at www.mfda.ca.

– Staff

(11/29/10)