Briefly: “TMX to open London office” and more news

TMX Group is going to London. The Canadian securities exchange will open a new office in early 2011, focusing on driving new business opportunities in U.K. and European markets.

“We’ve built a strong and diversified portfolio under the TMX Group umbrella and have begun to expand our business to international markets over the last few years,” said Thomas Kloet, TMX Group CEO. “With a presence in London, one of the world’s leading financial markets, we will be able to accelerate our international growth and better serve our existing and prospective European clients and partners.”

There are already about 300 international organizations listed on the Toronto Stock Exchange and TSX Venture Exchange.

TMX Group is a minority partner with London Stock Exchange in EDX London, which provides futures and options trading in a range of international markets across equity and index derivatives.

– Steven Lamb

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MFDA issues Notice of Hearing regarding James Woloshen

The Mutual Fund Dealers Association of Canada today announced that it has commenced disciplinary proceedings against James Woloshen (the “Respondent”). MFDA staff alleges in its Notice of Hearing that the Respondent engaged in the following conduct contrary to the By-laws, Rules or Policies of the MFDA:

Allegation #1: Between February 8, 2002 and December 2007, the Respondent engaged in personal financial dealings with clients GB and JB by borrowing a total of $50,000 from them and thereafter misappropriating the monies, thereby giving rise to a potential or actual conflict of interest which was not addressed by the exercise of responsible business judgment influenced only by the best interests of clients GB and JB and failing to deal fairly, honestly and in good faith with clients GB and JB, contrary to MFDA Rules 2.1.4 and 2.1.1.

Allegation #2: Between about September 2005 and December 2008, the Respondent engaged in personal financial dealings with clients RE and JE by borrowing $20,000 from them which he failed to fully repay, thereby giving rise to a potential or actual conflict of interest that was not addressed by the exercise of responsible business judgment influenced only by the best interests of clients RE and JE and failing to deal fairly, honestly and in good faith with clients RE and JE, contrary to MFDA Rules 2.1.4 and 2.1.1.

Allegation #3: Between about February 2004 and December 2006, the Respondent referred clients to a charitable donation program and received $93,600 in referral fees for doing so, thereby:

(a) having and continuing in another gainful occupation that was not disclosed to and approved by the Member, contrary to MFDA Rule 1.2.1(d); and (b) participating in a referral arrangement, contrary to MFDA Rule 2.4.2.

Allegation #4: Commencing in about September 2009, the Respondent failed to cooperate with an investigation of his conduct, contrary to section 22.1 of MFDA By-law No. 1.

The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA’s Central Regional Council on November 9, 2010 at 10:00 a.m. (Eastern) in the Hearing Room located at the offices of the MFDA, 121 King Street West, Suite 1000, Toronto, Ontario.

The purpose of the first appearance is to schedule the date for the commencement of the hearing on its merits and to address any other procedural matters. The first appearance will be open to the public, except as may be required for the protection of confidential matters.

A copy of the Notice of Hearing is available here.

– Staff

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Cumberland launches market neutral fund

Cumberland Private Wealth Management has launched a new market neutral fund focused on the U.S. technology sector. The fund will use offsetting long and short positions to reduce overall market risk as well as specific sector and industry risks.

“A market neutral fund can be a difficult concept to grasp for some investors traditionally used to making money when markets go up, and losing when they go down,” said John Wilson, chief investment officer, Cumberland. “However investors today are looking for alternatives in a volatile market that has limited yield. Market neutral funds can play a vital role in optimizing overall portfolio risk, while enhancing long term portfolio returns.”

The company says tech stocks are often priced inefficiently, which is key to managing a market neutral fund. The accelerating pace and complexity of innovation leading to constant cycles of renewal and obsolescence, while disruptive new technologies often cause significant market share changes within an industry.

The fund will mitigate liquidity risk by investing primarily in corporations a market capitalization in excess of US$500 million.

– Steven Lamb

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T. Rowe Price builds Canadian institutional team

U.S.-based investment management firm T. Rowe Price has named Craig Siddall, as vice-president and consultant relations manager focusing on Canada. He will be based in Toronto.

Siddall will be responsible for further developing T. Rowe Price’s relationships with investment consultants serving institutional investors.

“Craig’s hiring reinforces our commitment to serving institutional investors and will enhance our ability to effectively communicate with the institutional consulting community,” said Wendy Brodkin, director of Canadian business development, with T. Rowe Price. “I look forward to partnering with Craig to expand our institutional asset management presence.”

– Steven Lamb

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Northwest Founder joins Pro-Financial

Pro-Financial Asset Management has announced that two new members have joined its senior executive team, including the founder of Northwest Mutual Funds.

Michael Butler, president and partner, and Tony Cox, chief operating officer and chief financial officer, joined the Oakville, Ont.-based financial management company as it expands its Pro-Index and Pro-Guaranteed Funds divisions.

“As we continue to develop our services, particularly in the Pro-Index and Pro-Guaranteed Funds divisions, we will count on Michael and Tony to provide leadership based on their experience and entrepreneurial spirit,” said Stuart McKinnon, CEO of Pro-Financial.

Butler comes to Pro with over 25 years of experience in the financial services industry, including a stint at Sun Life’s Spectrum United Mutual Funds. He also founded Northwest Mutual Funds in 1997 and was instrumental in building Northwest & Ethical Investments.

Cox is a chartered accountant who spent 17 years with major accounting firms in London (UK), Montreal, and Toronto. He has worked on IPOs and has launched and built investment fund management companies for groups including Sun Life, National Bank Financial, and Investment Planning Counsel.

– Electa Porado

(11/03/10)