By Staff | October 31, 2008 | Last updated on October 31, 2008
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(October 31, 2008) If our approach to finances is learned behaviour, there’s some troubling news about the next generation of clients. A recent study commissioned by Credit Canada found that only 14% of parents are having in-depth discussions about money with their teenaged children.

Without guidance on the importance of saving — and in many cases, an absence of a positive role model — teens are either following their parents’ bad example, or exceeding it.

“We are poised to have another generation unprepared to manage their money and save for their futures because nobody is taking the time to properly explain all the basics of money management to them,” said Laurie Campbell, executive director of Credit Canada. “The next generation will be as ill-equipped to deal with their finances as their parents if we don’t start taking the responsibility of teaching our children the basics about money more seriously.”

The study found that only one-third of parents consider monthly savings to be important, and only 20% of teens are saving on a monthly basis.

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Scotia shuffles upper ranks

(October 31, 2008) Scotiabank has announced Sabi Marwah as the successor to vice-chairman Bob Brooks, who is set to retire today. Marwah will also serve as the bank’s chief operating officer.

“Sabi Marwah’s contribution to Scotiabank continues to be significant, and his leadership and guidance are valued within the bank,” said Rick Waugh, president and CEO of the bank. “I am very pleased to make this announcement and look forward to working with Sabi as his role expands into new areas.”

Marwah has been with the bank since 1979, holding numerous senior executive positions; mostly recently, he was named vice-chairman and chief administrative officer in 2005.

Scotia also announced the appointment of Brian Porter as group head, risk and treasury. Porter currently also serves as executive vice-president and chief risk officer.

In a related move, Stephen Hart, currently senior vice-president and head, credit risk, has been appointed executive vice-president, chief credit officer. In this new role, he will report to Porter.

“We are confident that these changes to our executive team and this structure represent the right approach to ensuring continued strong leadership and the ongoing success of the Scotiabank Group,” said Waugh.

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Unity Life buys Forethought funeral policies

(October 31, 2008) Unity Life of Canada has struck a deal to purchase the Canadian insurance operations of Forethought Financial Group, an American provider of insurance and financial services aimed at retirement and “end of life” expenses.

“This transaction reaffirms our growth strategy of targeting blocks of business that complement Unity Life’s market and area of expertise, and reinforces our commitment to becoming Canada’s leading niche insurer,” said Tony Poole, president and CEO of Unity Life. “This addition will further strengthen Unity Life’s asset base, and aligns well with our existing insurance portfolio of specialty products.”

The deal would add about 20,000 funeral funding policies, with policy liabilities of about $90.6 million, to Unity Life’s book. The transaction is subject to regulatory approval on both sides of the border. The deal is expected to close on or about December 31, 2008.

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OSC seeks receiver for ASL Direct

(October 31, 2008) The Ontario Securities Commission (OSC) is seeking a court order to appoint a receiver for mutual fund dealer ASL Direct Inc.

ASL Direct offered clients rebates equal to their trailer commission in exchange for a monthly fee.

The matter will be heard before the Superior Court of Justice, at 330 University Avenue, Toronto, on Tuesday, November 4, 2008, at 10 a.m. ASL Direct has been under an OSC cease-trade order since April 22, 2008.

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AGF kills Global High Income fund

(October 31, 2008) AGF Funds has announced that it will terminate the AGF Global High Income Fund on December 31, 2008. Effective immediately, the fund has been closed to purchases.

At the end of October, they managed only $1.7 million in assets, according to AGF also cited the low number of investors holding the fund, in its decision to wind it up.

Prior to termination, unitholders will have the option to switch their investment to any other AGF fund or to redeem their units.

Any units that remain in the fund at the end of the year will be invested in units of AGF Canadian Money Market Fund or AGF U.S. Dollar Money Market Account, based on the currency denomination of the original purchase.

(10/31/08) staff


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