Briefly: Unregistered advisor fined and more news

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A B.C. man who conducted business as an unregistered adviser has been fined $10,000 by the British Columbia Securities Commission and must pay back the approximately $64,000 in fees he charged to 11 investors.

Between May 2006 and September 2007, Basil Roy Botha, a former registrant, admitted he charged investors on a fee-for-profit basis and managed some of the investors’ online brokerage accounts without being registered.

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Cdn businesses want more green tax breaks

According to a survey by Regus, 68% of Canadian companies have said government tax breaks are required to accelerate adoption of green investment.

In Canada, the survey found only 9% of companies monitor their carbon footprint, the lowest percentage globally. Less than a quarter (24%) of businesses had a corporate policy to invest in energy efficient equipment.

“Adoption of green equipment and monitoring initiatives is still disappointingly low, particularly for smaller companies. Yet small and medium-sized companies account for half of any country’s business makeup with reports indicating that as a result of the Harper government failing to keep pace with renewable energy investments made by the Obama administration, Canada is losing out on approximately 66,000 jobs(1). If the government is serious about meeting ambitious carbon emission reduction targets by mid-century, then it needs to further incentivize the change,” said Wes Lenci, regional vice president, Regus Canada.

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IFIC responds to FSCO statement

The Investment Funds Institute of Canada (IFIC) submitted its comments on the Financial Services Commission of Ontario’s (FSCO) proposed statement of priorities. In its response the IFIC highlighted issues such as point of sale, CCIR review of MGAs, and pension reform, key priorities of the mutual fund industry that were raised in the FSCO’s proposed statement.

The IFIC comments as follows:

Point of Sale: IFIC recommended that regulators proceed with the Fund Facts disclosure for mutual funds and segregated funds, and that FSCO support the industry’s position that the requirements for pre-sale document delivery be put on hold pending the resolution of the implications for product arbitrage with competing products.

CCIR Review of MGAs: FSCO indicated that it will be participating in a review of managing general agencies with the Canadian Council of Insurance Regulators to identify risks to consumers, regulatory gaps, and legislative and regulatory barriers. IFIC and its members are looking forward to being active participants in these consultations.

Pension Reform: FSCO identified pension regulatory services as a key focus area and noted its support for the development of harmonized regulatory solutions. IFIC encouraged FSCO to work with the Ontario government to continue to implement improvements that ease the regulatory burden for retirement savings vehicles and encourage their use. IFIC also looks forward to receiving information related to FSCO’s proposed pension reforms and welcomes the opportunity to participate in any related consultations.

While FSCO did not make specific reference to financial literacy in its proposed Statement, we believe that raising the level of financial literacy of the population would be a big step towards meeting FSCO’s mandate, which is to provide regulatory services that protect the public interest and enhance public confidence in the regulated sectors.

(06/02/10)