Briefly: “Insurers call for smart regulation” and more news

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The Canadian Life and Health Insurance Association (CLHIA) has added its voice to those of six other international insurance associations, calling on world leaders to tread carefully when they craft new regulations for the financial services industry.

The industry wants leaders of the G20 nations, who will meet April 2 in London, to develop regulations that take into account an individual insurer’s risk management and diversification.

“This initiative, undertaken by leading insurance associations, reflects our joint commitment to encourage G20 leaders to continue down the path of risk- and principles-based regulation, while strengthening regulatory co-operation around the world,” said Frank Swedlove, president of the CLHIA.

The insurance associations also want accounting rules to be strengthened, making fair value accounting more applicable, and want regulators to be properly equipped to guard against the systemic risks facing the global industry.

The CLHIA also pointed out that the Canadian industry remains relatively strong.

“Canadians can be assured that companies are well positioned to meet any obligations to their policyholders,” Swedlove said.

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Mackenzie sets date of fund merger vote

Mackenzie Financial has scheduled a meeting of MSP Maxxum Trust unitholders, to vote on a proposal to merge the fund into Mackenzie Maxxum Dividend Class.

The investment objectives and strategies of the two products are similar. The meeting will be held on June 1, 2009, at Mackenzie’s head office in Toronto. If a quorum is not present at this meeting, then the meeting will be adjourned to June 15, 2009.

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Budget sends “mixed message”: CFIB

The Ontario government’s plan to harmonize the provincial retail sales tax with the federal GST removes one “thorn in the side” of small businesses, but the Canadian Federation of Independent Businesses has expressed reservation about the planned transition.

The RST was troublesome to many small businesses, the CFIB says, because of its Byzantine rules, but at least retailers were compensated for collecting taxes for the province. Under the HST, the group doubts there will be any such compensation.

“Ontario small businesses are once again being asked to work for free to collect taxes for the provincial government,” said CFIB president Catherine Swift. “It would also be nice to see a significant reduction in Ontario’s tax collection bureaucracy as a result of this harmonization.”

The CFIB did give kudos to the government for reducing personal income tax and small business tax rates and for eliminating the small business surtax.

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TSX extends relief period

The TSX Group is extending exemptive relief to companies listed on the Toronto Stock Exchange and TSX Venture Exchange. The relief measures ease the listing requirements for companies that were forced into non-compliance by the rapid decline in their share value.

The temporary relief was put in place in November 2008, and will now remain in effect until September 30, 2009.

The Toronto Stock Exchange has extended the remedial review period for delistings from a maximum of up to 120 days to up to 210 days.

The TSX Venture Exchange has temporarily added flexibility in how existing continued listing requirements are applied to listed issuers. The junior exchange also extended the time within which Capital Pool Companies can complete their qualifying transactions.

(03/27/09)