Briefly: “Keep regulation fair: Advocis” and more of Tuesday’s news

While most Canadians await the federal budget to be tabled in Ottawa January 27, Advocis has drawn attention to the impending Ontario budget, calling for any regulation of the financial services industry to be “smart.”

“We are not asking for a handout or a subsidy,” said Advocis president and CEO Greg Pollock. “Our members simply want to do business in a regulatory environment that not only protects the public but also ensures that advisors and planners are not hampered by unnecessary and inefficient regulation.”

Advocis is recommending the provincial government keep a closer eye on regulators, pointing out that investor protection should not hinder the same investor’s ability to choose qualified financial advice.

“In addition to smart regulation — not one-size-fits-all regulation, we need to see more and better proof of the need for additional regulation,” Pollock said. “Our members see the regulation but seldom see any indication of an understanding of the size of the problem the regulation is intended to address. A cost-benefit analysis from the regulator about the benefits of protecting the consumer against the increased burden of compliance costs to the financial advisor or planner would go a long way.”

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Canadians plan to feather nest

It appears the Canadian nesting instinct remains intact, despite the barrage of negative economic reports. A poll by TD Canada Trust has found that the majority of homeowners who had been planning home renovations are going ahead with the project.

Investing in a reno may be seen as a way to prop up falling real estate values. Sixty-three per cent of Canadians say the economic downturn may have provided them an opportunity to buy a home.

While the jobless rate has crept slightly higher in recent months, 92% of survey respondents said the economy has not forced them to consider selling their home.

“Our research shows 72% of Canadians who are thinking about putting their homes on the market are concerned that the economy will affect their ability to sell in the next year,” says Joan Dal Bianco, vice-president, real estate secured lending, TD Canada Trust. “The fact is, the home market has changed — it’s become much more balanced, creating opportunities for both buyers and sellers.”

The survey also found that 37% of Canadians planned to save more, while 33% were planning to pay down debt. Almost one-third said they had no plans to change their financial habits.

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Scotia teams up with Gordon Pape

Scotiabank has enlisted the help of Gordon Pape to explain the benefits of the TFSA to Canadians. The bank and Pape will produce a video for clients and hold a seminar at the Toronto headquarters of Scotia’s recently acquired online brokerage, E*Trade Canada.

“Canadians have had many questions on how to incorporate this account into their overall financial portfolio to maximize their benefits,” said Barb Mason, executive vice-president, wealth management, Scotiabank. “We have partnered exclusively with Gordon Pape to bring his years of expertise and his research on this new account to our clients to help them make the most of their new TFSA.”

“I believe the tax-free savings account is the most powerful investment option since the introduction of RRSPs more than 50 years ago,” said Pape, who has recently published Tax-Free Savings Accounts: A Guide to TFSAs and How They Can Make You Rich. “I believe every Canadian should have a TFSA, and I am delighted to be working with Scotiabank to help people understand how they can use these accounts to their best advantage.”

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CIBC Mellon offers TFSA services

CIBC Mellon is offering TFSA services to allow public companies to offer a TFSA option as part of employee share purchase plans. The services are also available to investment fund companies offering TFSAs to clients.

“The TFSA is a great new personal savings vehicle that helps Canadians reduce taxes on their savings,” said Thomas C. MacMillan, president and CEO, CIBC Mellon. “Our TFSA services will help investment fund companies and public companies offer new tax-free savings and investment solutions for their clients and employees.”

(01/20/09)