Dealers agree to return Portus fees

Fifty-seven investment and mutual fund dealers have agreed to a regulatory plan that will see more than $12 million in Portus referral fees returned to investors by May 31.

Earlier this month, the Ontario Securities Commission (OSC), the MFDA and the IDA asked the dealers to voluntarily participate in the reimbursement plan and respond in writing by January 28.

“We’re pleased that the dealers responded positively to the initiative and agreed with us that it was the fair thing to do on behalf of investors,” says the OSC’s Wendy Dey, adding that all Ontario firms agreed to follow the initiative.

In total, 64 dealers across Canada approved referrals resulting in their clients investing in Portus through some 25,000 accounts. Fifty-nine of these dealers are MFDA members and five are members of the IDA. Two of the IDA members are also affiliated with an MFDA member.

Seven firms are outside the OSC’s jurisdiction, and the commission is refusing comment on whether they are also complying with the arrangement.

“We have been communicating with our partners in other jurisdictions but it is up to them to decide what is appropriate,” says Dey.

Here’s a list of the Ontario-registered dealers who have agreed to the plan and the OSC’s conditions, which include participating in regulatory studies relating to the referral fee arrangements and non-mutual fund products.

• Aegon Dealer Services Canada Inc.
• Altimum Mutuals Inc.
• Argosy Securities Inc.
• Armstrong & Quaile Associates Inc.
• ASL Direct Inc.
• AXA Financial Services Inc.
• Berkshire Investment Group Inc.
• Berkshire Securities Inc.
• Blueprint Investment Corp.
• Brownstone Investment Planning
• Burgeonvest Securities Limited
• Candor Financial Group Inc.
• Canfin Magellan Investments Inc.
• Doheny Securities Limited
• Equity Associates Inc.
• Excel Financial Growth Inc.
• Family Investment Planning Inc.
• Farm Mutual Financial Services Inc.
• Fundex Investments Inc.
• Fundtrade Financial Corp.
• Global Maxfin Investments Inc.
• GP Capital Corporation
• Independent Accountants’ Investment Group
• Info Financial Consulting Group Inc.
• Interglobe Financial Services Corp.
• International Capital Management Inc.
• Investia Financial Services Inc.
• IPC Investment Corporation
• Keybase Financial Group Inc.
• Legacy Associates Inc.
• Levine Financial Group Inc.
• Meta Financial Management Ltd.
• Monarch Wealth and Investment Group Inc.
• Odyssey Capital Corporation
• Olympian Financial Inc.
• Partners In Planning Financial Services Ltd.
• Planmar Financial Corp.
• Polyfunds Investment Inc.
• Portfolio Strategies Corporation
• Professional Investments (Kingston) Inc.
• Quadrus Investment Services Ltd
• Queensbury Securities Inc.
• Queensbury Strategies Inc.
• Target Investment Planners Inc.
• Ten Star Financial Inc.
• The Investment House of Canada Inc.
• Value Investment Planning Centre Inc.
• W.H. Stuart Mutuals Ltd.
• Wellington West Capital Inc.
• Wellington West Financial Services Inc.
• WFG Securities of Canada Inc.
• Worldsource Financial Management Inc.
• Y.I.S. Financial Inc.

The OSC notes that the reimbursement plan does not apply to IQON Financial, Manulife Securities and Peak Investment Services, who have already made arrangements to return fees to their investors.

Merchant Capital Wealth Management is also exempt as the firm is in the process of winding down its operations.

Filed by Doug Watt, Advisor.ca, doug.watt@advisor.rogers.com

(01/31/06)

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