By Staff | March 5, 2007 | Last updated on March 5, 2007
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(March 5, 2007) TSX Group has set a launch date for its previously announced derivatives exchange, which will begin operation in March 2009. Teaming up with International Securities Exchange (ISE), the new market, dubbed DEX.

“We are excited to announce this new exchange with ISE, a company that has shown great innovation and growth in the very competitive US derivatives market,” said Richard Nesbitt, TSX Group’s CEO. “With the launch of DEX, we will be offering both cash and derivatives trading, and providing maximum flexibility, to our customers.”

TSX is relying on its higher profile to give it a competitive advantage over Canada’s existing derivatives exchange, the Montreal Exchange.

“We have seen tremendous growth in ISE’s derivatives offering across the US, and we see this alliance as a first step in expanding our international footprint,” said David Krell, ISE president and CEO. “Working with a leading exchange group like TSX Group is clearly a natural fit.”

DEX will list and trade options, futures and options on futures on a range of Canadian securities. TSX holds a 52% stake in the new venture, with 48% held by ISE, and the estimated $26 million cost of setting DEX up will be split accordingly.

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Ontario introduces business legislation

(March 5, 2007) The Ontario government has introduced a number of new business law measures it hopes will increase corporate accountability and competitiveness in the province, Government Services Minister Gerry Phillips told the Ottawa Rotary Club in a speech on Monday.

“Business, investor and shareholder groups told us that Ontario needed to update its business laws to compete with other jurisdictions in the global economy,” said Phillips. “We listened to their concerns and are delivering strong, clear laws to ensure Ontario remains attractive to investors and businesses, and provides better protection for shareholders’ investments.”

The ministry said Bill 152, the Consumer Protection and Service Modernization Act, updates Ontario’s business laws and harmonizes them with federal law by making changes to the Ontario Business Corporations Act, Personal Property Security Act, Partnerships Act, Corporations Act and the Repair and Storage Liens Act.

Some of the changes include a measure that will improve the legal protections available to shareholders who take on the duties of director. The Act will also attempt to reduce unnecessary costs for businesses, including allowing more flexibility to communicate electronically with shareholders. Finally, it will try to protect shareholders’ investments by improving the ongoing requirements for directors to notify a company of changes in their situations that could result in conflicts of interest.

Bill 152, which will come into effect on August 1, 2007, is the second of a three-phase plan of business reforms the Ontario government is introducing. The first phase was the January introduction of the Securities Transfer Act, which was developed to harmonize Ontario security laws with those in the U.S.

The ministry said it is now preparing for the third phase, which will address regulations for the not-for-profit sector.

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Manulife Mutual Funds tops customer service study

(March 5, 2007) For the sixth consecutive year, Manulife Mutual Funds, a division of Elliott & Page Limited, has been named the best fund company in Canada for customer service, according to an Environics Research study.

The ongoing phone audit study is conducted by Environics with the help of financial advisors. Environics records and monitors the calls that these advisors make to 15 different mutual fund companies to evaluate the quality of customer service. The scores assigned come from a number of factors and are weighted in comparison to the results of other customer service departments.

The 2006 results were derived from more than 4,500 calls to customer service departments, which were evaluated on things such as professionalism, knowledge, overall value-added service to clients and client service efficiency.

Manulife said it received the highest score, 85 out of a possible 100 points, roughly five points ahead of the average industry score of 80.7. The study is conducted by Environics as a service for clients. As a result, where other leading fund companies ranked in comparison to Manulife has not been made public.

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ASC bans illegal trader for three years

(March 5, 2007) The Alberta Securities Commission has ordered a three-year market ban and a $20,000 administrative penalty against John David Williams of Cochrane, Alberta.

An ASC panel imposed the penalties after it found that Williams had raised approximately $106,500 through illegal distribution of securities to 10 Alberta residents and made prohibited representations to investors.

The ASC stated it imposed the sanctions “. . . with a view both to specific deterrence of future misconduct by Williams himself and general deterrence to others who might otherwise be minded to act similarly.”

Williams will be prohibited from becoming or acting as a director or officer of any reporting issuer for three years.

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MFDA penalizes advisor for selling on the side

(March 5, 2007) The Mutual Fund Dealers Association of Canada has fined Lip Fee Chan $150,000.

The MFDA hearing panel recounts that in 2002, Chan violated MFDA regulations when he was found to have conducted business outside of the member firm where he was employed without the company’s approval. In addition, he failed to invest $98,000 that was placed with him by one of the clients he was dealing with on the side.

Along with the fine, the MFDA has permanently banned Chan from conducting any securities-related business with any of its member firms and ordered him to pay an additional $7,500 in costs.

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(03/05/07) staff


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