By Staff | May 25, 2009 | Last updated on May 25, 2009
3 min read
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The Investment Industry Regulatory Organization of Canada (IIROC) has announced the launch of a whistleblower hotline to allow those with first-hand knowledge of wrongdoing in the securities industry to report it.

“This service will ensure that individuals who believe that they have significant information to convey deal directly with IIROC senior staff who will ensure that each tip is properly evaluated and promptly dealt with,” said Susan Wolburgh Jenah, IIROC president and CEO.

The service includes a toll-free telephone number — 1 (866) 211-9001) — as well as an email address:

Whistleblower team members will immediately assess and ensure that prompt and appropriate follow-up action on reported issues or behaviour is taken. IIROC’s whistleblower team is comprised of:

• Maureen Jensen, senior vice-president, surveillance and compliance; • Rosemary Chan, senior vice-president, general counsel and corporate secretary; • Carmen Crépin, vice-president, Québec; and • Warren Funt, vice-president, Western Canada.

This service does not replace IIROC’s traditional complaint handling service for clients of IIROC- regulated firms.

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Canadians watch their spending

In response to the economic downturn, more Canadians are looking for ways to increase their savings.

According to the fourth annual RBC account habits poll, six-in-ten Canadians have become more concerned about their monthly spending in the past six months.

The survey finds 56% claim to have stopped buying non-essential items and 44% are eating out less or packing their lunches. Also, One-in-six young adults (aged 18 — 34) have taken part-time jobs.

For the cash that is not stashed away, Canadians say they want better value for every dollar spent. The survey showed that 96% of respondents said better value for money was important (66% very important) to them. While 65% rated lower costs/fees as being very important, 52% wanted to do business with a company with a solid reputation and 32% said receiving something above and beyond the product or service was very important.

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AIC cuts Preferred Income Fund fees

AIC said May 25 that it will waive a portion of the management fee on the AIC Preferred Income Fund to help boost the yield for investors. This action is being taken as a response to the usually low interest rate environment in Canada and the U.S.

Effective June 1, 2009, the waiver reduces the management fee for both A class and F class units of the AIC Preferred Income Fund by 25 basis points. As a result, the associated trailer fee will also be temporarily reduced.

AIC will continue to monitor the situation and may, at its discretion, raise management fee to its previous level or make further reductions. Trailer fees will be adjusted in accordance with any future changes to the annual management fee.

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Teachers’ trims BCE holdings

One of Canada’s most powerful pension funds has quietly sold off one of its long-time key holdings. On Friday, the Ontario Teachers’ Pension Plan dumped a large portion of its BCE holdings.

The fund sold 30.6 million shares of BCE, worth $713 million, in four large trades through TD Securities. The pension plan once had 50.8 million share worth $1.2 billion, but in its last regulatory filing, as of March 31, the stake had shrunk to 39.8 million shares.

Shares of BCE closed Friday at $23.91 — a price well below the $42.75 takeover bid for BCE tabled by Teachers’ back in 2007. Rival money managers commented that the Teachers’ probably see better opportunities elsewhere.

(05/25/09) staff


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