Market timing settlements to be announced mid-month

(December 7, 2004) The IDA says it has reached settlement agreements with three major brokerage firms over allegations of market timing. However, details won’t be announced until next week.

In news releases issued late Monday, the IDA said it had reached deals with BMO Nesbitt Burns, RBC Dominion Securities and TD Waterhouse Canada.

“The subject matter of the settlement agreement is an allegation that the respondent failed to implement supervisory systems to detect and prevent potentially harmful market timing activities,” the IDA said.

The three firms will appear before an IDA hearing panel at the same time on December 16.

“We take this matter very seriously,” said Bill Hatanaka, executive vice- president, Wealth Management, TD Bank Financial Group. “As a financial institution we realize that the most important asset we have is the trust of investors and customers and we know we must work hard every day to earn and maintain that trust.”

“TD Waterhouse Canada does not condone market timing,” he added. “We have enhanced our practices and procedures and are committed to reviewing them on a regular basis.”

The other two brokerages did not comment on the agreements.

The MFDA also announced on Monday that it has reached a settlement agreement with Investors Group on the market timing issue.

“The subject matter of the proposed settlement agreement is an allegation that IGFS permitted an institutional client to conduct a frequent trading market timing strategy in certain Investors Group mutual funds during the period September, 2000 to November, 2002,” the MFDA said.

The MFDA will also deal with the IG case on December 16.

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