Briefly: Jory Capital faces IIROC hearing and more news

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IIROC has announced a disciplinary hearing for Patrick Cooney and Jory Capital Inc. The hearing has been scheduled before a panel of the Investment Industry Regulatory Organization of Canada (IIROC).

The issue is related to allegations that Cooney, chief executive and sole director of Jory, failed to take measures to ensure Jory met compliance standards with regard to the maintenance and monitoring of regulatory capital and the reliability of financial reporting. It is also alleged that by failing to ensure Jory met various required standards on supervision, Cooney breached additional IIROC Dealer Member Rules as well as Universal Market Integrity Rules (UMIR).

Following are the specifics of the allegations:

• Cooney failed to ensure that Jory design, establish, oversee and implement an effective financial compliance program to ensure proper compliance with regulatory requirements regarding maintenance of adequate risk adjusted capital (RAC), monitoring of regulatory capital and reliability of financial reporting, contrary to Rules 29 and 2600.
• Jory failed to maintain its RAC greater than zero on January 24, 2008, during the months of June to October 2009 and again on April 14, 2010, all contrary to Rule 17.1.
• Cooney failed to ensure that Jory establish, maintain, and enforce a supervisory system, contrary to Rule 38; and failed to ensure that Jory develop and implement a trade supervision policy, as required by UMIR 7.1.
• Cooney engaged in conduct unbecoming his positions by failing to ensure that Jory fulfill representations provided to IIROC, contrary to Rule 29.1

IIROC formally initiated the investigation into Cooney’s and Jory’s conduct on September 28, 2009. The alleged violations occurred between 2005 and 2009 when Cooney was an Approved Person employed at the Winnipeg office of Jory, an IIROC-regulated firm. Cooney continues to be registered in the same capacity at the same office.

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Sun Life introduces new products

Sun Life Financial has introduced new life insurance products with a view to help Canadians plan, protect, and prosper.

The two new permanent life insurance products, Sun Par Protector and Sun Par Accumulator, will join an existing suite of life and health insurance and wealth management products available to Canadians.

“Our Sun Par products are two powerful life insurance products that can help clients protect their family and assets,” said Kevin Strain, senior vice-president, Individual Insurance and Investments, Sun Life Financial. “These new products give clients the opportunity to generate long-term growth through policyholder dividends from a leader in the Canadian insurance industry.”

The new products offer a strong foundation of guarantees, including minimum guaranteed death benefit and cash value. Both products offer such features as clients lifetime protection, choice from a variety of dividend options, and a wide range of additional features to customize the product.

Sun Par Protector caters to longer-term needs, including estate protection, coupled with the flexibility to enhance their retirement through access to the cash in the policy if their needs change. Sun Par Accumulator, on the other hand, promises higher early cash values for clients needing $500,000 or more of lifetime coverage, in exchange for modestly lower long-term growth.

The products will be available later this month through Sun Life Financial advisors and a select group of advisors partnering with Sun Life. While a particularly strong fit for business owners, professionals, and executives, they will also appeal to Canadians looking for effective solutions to protect their families, innovative ways to save for retirement, or an effective cornerstone in their estate planning needs.

“These products have proven through the years that they can be a valuable, tax efficient part of a client’s financial plan,” said Strain. “Canadian consumers are demonstrating a renewed interest in participating whole life insurance, and Sun Life is the company to provide it.”

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More from Manulife

Manulife rebranded and relaunched its Value Leaders under a new brand name Manulife Leaders Portfolios.

The portfolios take a more active approach to asset allocation and includes leading mutual funds from the Manulife family of mutual funds.

“With the integration of AIC Funds in September of 2009, we saw the opportunity to take a strong product and make it even better”, said Jeff Ray, assistant vice president, Mutual Fund Products. “By integrating some of Manulife’s most popular and award-winning mandates into an already strong line up of funds, and by applying an active approach to asset allocation, we believe the new Manulife Leaders Portfolios provide advisors and their clients with a highly competitive managed solution and a strong foundation for many investors’ financial plans.”

Portfolios will be available in three different mandates: Manulife Leaders Balanced Income Portfolio, Manulife Leaders Balanced Growth Portfolio and the Manulife Leaders Opportunities Portfolio. Each portfolio will contain what Manulife has identified as its leading funds, and will be managed by a team of asset allocation specialists including Mark Schmeer, CFA, chief investment officer, asset allocation and Don Rich, PhD, head of tactical asset allocation at MFC Global Investment Management. The asset allocation team intends to take an active, hands-on approach to allocating the assets within each portfolio.

“Asset allocation portfolios and other managed product solutions are becoming increasingly popular with advisors and their investors across Canada,” said Ray. “The Manulife Leaders Portfolios provides real value for advisors through a highly experienced team of asset allocation specialists and a competitive suite of mutual funds.”

(06/07/10)