By Staff | May 25, 2010 | Last updated on May 25, 2010
6 min read
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Britain could face a “scarier” future than Japan faced in the 1990s, according to Adam Posen, member of the Bank of England Monetary Policy Committee.

While policymakers in the U.K. are unlikely to make the same mistakes their Japanese counterparts made 20 years ago, he said, Britain has far fewer resources to stimulate growth than Japan had.

In the 1990s — and again in the 2000s — Japan failed to capitalize on global economic booms. The U.K. is by no means alone in its economic woes, and there are few economic updrafts to be ridden.

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RBC Dexia chosen by Superfund

RBC Dexia has been selected by Superfund to provide fund administration, custody and shareholder registry services to five master/feeder funds now being marketed to Asian investors. Superfund is a managed futures fund provider which makes an institutional quality investment strategy available to private investors.

“With Asia being a specific part of our growth strategy, it was imperative our service provider has on the-ground capabilities and an excellent local reputation for providing superior client service,” said Markus Weigl, executive officer at Superfund. “As we look to expand and launch new funds in the region, it gives us comfort knowing RBC Dexia will be there to offer guidance and support our growth.”

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CSA announces youth contest winners

The Canadian Securities Administrators has announced the results of its annual Financial Fitness Challenge, which attracted more than 17,000 young Canadians.

From February 15 to April 15, 2010, the CSA challenged Canadian youth aged 15 to 21 to test their knowledge of personal finance concepts in an online competition.

More than 39,000 visitors explored the website’s educational resources, used interactive tools, and participated in online discussions. In total 17,305 youth registered on the site to take the challenge and competed for provincial and national prizes.

A $2,000 grand prize was awarded to Patricia Lee-Kim from Belleville, Ontario, while 13 other provincial and territorial winners were awarded a notebook computer. That list of winners included:

• Stephanie Ridenour (British Columbia) • Arielle Boyes (Alberta) • Ashley Teckchandani-Buziak (Saskatchewan) • Adrian De Juan (Manitoba) • Robin Buckley-Cuomo (Ontario) • Roxanne Bourgoin Ouellet (Quebec) • Jillian Breen (New Brunswick) • Chauntelle Brewer (Nova Scotia) • Laura Stewart (Prince Edward Island) • Tiffany Sceviour (Newfoundland and Labrador) • Allan Paziuk (Northwest Territories) • Olivia Ullyot (Nunavut) • Shellby Fulton (Yukon)

“As securities regulators, we believe it’s important for people to understand the fundamentals of saving and investing when participating in Canada’s capital markets,” said Jean St-Gelais, CSA chair and president and CEO of the Autoritées marché financiers (Québec). “We are pleased that young Canadians, their parents and their teachers use the Challenge as a fun and informative learning tool to create good financial habits that will last a lifetime.”

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IIROC announces penalties for Mauro, Harding

A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted settlement agreements, which include sanctions, between IIROC staff and both Francesco Mauro and Scott Fraser Harding.

Harding has admitted he failed in his role as gatekeeper in the markets when he entered and executed stock trades which he ought to have known could be expected to create an artificial price in the stock’s share price. As part of his settlement agreement, Harding agreed to pay a fine of $40,000 and costs of $10,000.

Mauro has admitted he failed in his role as Harding’s supervisor to ensure Harding complied with IIROC’s Universal Market Integrity Rules (UMIR). As part of his settlement agreement, Mauro agreed to pay a fine of $25,000 and costs of $5,000.

The Hearing Panel issued its decision on May 3, 2010. The specific violations addressed in the agreements are as follows:

• Harding entered orders and executed trades on behalf of a client for TSX-Venture-listed Evergreen Gaming Corporation. In doing so, he ought to have known the activity could reasonably be expected to create an artificial price for the security, contrary to UMIR 2.2(2)(b) and UMIR Policy 2.2 (e), for which he is liable under UMIR 10.4(1).

• Mauro, at the time a branch manager and officer at the same institution, did not meet the standard required of him in his role as a supervisor to ensure that Mr. Harding complied with UMIR and its policies, contrary to UMIR 7.1 (4) and Policy 7.1.

IIROC began the investigation into Mauro and Harding’s conduct on November 13, 2008. The violations occurred when they were Registered Representatives at the 100 Park Royal, West Vancouver Branch of CIBC World Markets Inc., an IIROC-regulated firm. Both individuals are currently registered in the same capacity at the 545 Clyde Avenue, West Vancouver Branch of Wellington West Capital Inc., an IIROC-regulated firm.

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IIROC announces discipline for IPC Securities

A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted a settlement agreement between IIROC staff and IPC Securities Corporation. IPC has admitted that its inadequate policies and procedures made it unable to effectively supervise retail clients who purchased securities under prospectus exemptions.

As part of the May 13, 2010 settlement agreement, IPC agreed to pay a fine of $65,000 and pay $10,000 toward staff costs. The Reasons and Decision document will be made public after it is issued by the Panel at a later date.

In the agreement, IPC admitted it failed to establish and maintain adequate policies and procedures to ensure clients qualified as accredited investors (in accordance with provisions of the Ontario Securities Act) before assisting them in the purchase of exempt securities. These actions are contrary to By-Law 29.27 of the Investment Dealers Association of Canada (now IIROC), Regulation 1300.2 and Policy 2. As a result of the investigation by IIROC staff, IPC has established more efficient policies and procedures to remedy these failings, according to the agreement.

The violations occurred between 2005 and 2008 and the IDA (now IIROC) began its investigation into IPC’s conduct on May 20, 2008. Toronto-based IPC was regulated by the IDA at the time and is regulated by IIROC today.

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IIROC slaps penalty against Ian Douglas Sauder

A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has imposed a $200,000 fine and a permanent ban from registration on Ian Douglas Sauder for a series of related violations which include falsifying documents, forgery and unauthorized trading in client accounts.

The penalty includes an order for Sauder to pay costs of $25,000. The permanent ban involves registration “in any capacity in situations over which IIROC has jurisdiction.”

The penalty decision follows a disciplinary hearing held on May 3, 2010 in Toronto where the Hearing Panel found that Sauder:

i. Produced falsified monthly client account statements that misrepresented holdings and activity; ii. Forged clients’ signatures on account documents and instructions without client knowledge or consent; iii. Conducted eight unauthorized transactions in client accounts; iv. Concealed from his employer the fact a client was his spouse and misrepresented that relationship to his employer in a document; concealed that he was a beneficial owner of that account then controlled and conducted transactions in it; and v. Refused and/or failed to attend and give information in an IIROC investigation.

Most of the violations occurred between 2005 and 2008 and are counts where Sauder engaged in conduct unbecoming and/or detrimental to the public interest, contrary to IIROC Rule 29.1 as well as know your client provisions under Rule 1300.1 (b). Sauder’s failure to cooperate is a violation of IIROC Rule 19.5.

IIROC began its investigation into Sauder’s conduct on April 15, 2009 when he was a Registered Representative with the Toronto Branch of Union Securities Ltd., an IIROC-regulated firm. Sauder has not been a registrant with an IIROC-regulated firm since January, 2009.

Sauder’s conduct “caused harm and a great deal of anxiety” to clients and “compromised the reputation and integrity of Union Securities,” the panel noted in its Decision and Reasons, which were issued on May 14, 2010.

“And most importantly, (his conduct) offended the foundation of trust on which the securities industry relies. (The scheme) took place over an extended period of time; it was manipulative, fraudulent and deceptive.”

(05/25/10) staff


The staff of have been covering news for financial advisors since 1998.