By Staff | July 3, 2007 | Last updated on July 3, 2007
4 min read
Previous Brieflies this week: | MON | TUE | WED | THURS |

(July 3, 2007) A British Columbia Securities Commission panel has laid down the law on a Vancouver-based advisor who invested her client’s money in unsuitable investments.

Jill MacGregor Bock has been ordered to pay a $25,000 fine for violating securities rules. On February 27, 2007, the panel found that Bock had contravened section 48 — the suitability rule — when she sold exempt investments to certain clients.

From 1998 to 2001, Bock, who was employed by Foresight Capital Corp., a now-dissolved investment dealer in Burnaby, put her clients’ money in farming investments that the BCSC says were speculative and illiquid. Many of Bock’s clients didn’t meet the appropriate investor profile for these investments and were not properly informed of the risks involved.

“We are satisfied that if Bock continued to sell exempt products, there would be a serious risk that she would engage in similar unacceptable conduct which would jeopardize the public interest,” the panel said in its decision. The panel emphasized the special role that registrants play in the regulatory system and investors’ expectation of full regulatory compliance from them.

In addition to the fine, the panel also decided Bock must not engage in investor relations activities or work in the exempt product market for three years. At the end of the three-year period, the order will continue unless and until the administrative penalty is paid and Bock is registered as a salesperson with a registrant.

• • •

Rice Financial group gets new CEO

(July 3, 2007) Jovian Capital Corporation has announced the appointment of David Velanoff as president and CEO of its mutual fund dealer subsidiary Rice Financial Group (RFG). Malcolm Anderson, current president and CEO, will remain a director of RFG and assume the role of executive vice-chairman.

Jovian says Velanoff has spent the past 30 years with a number of major mutual fund dealers, investment dealers and insurance providers. He sits or has sat on a number of committees of the Mutual Fund Dealers Association, Investment Funds Institute of Canada, Investment Dealers Association of Canada and the Federation of Canadian Independent Deposit Brokers.

“We are very pleased to be able to welcome someone with the experience and industry insight that Dave Velanoff brings to Rice Financial. We feel that his knowledge and skills are just what Rice Financial needs to achieve the enhanced growth and prominence in the financial services marketplace that we believe it can,” said Mark Arthur, who himself was appointed president of Jovian capital just last week. “We thank Mr. Anderson for his strong leadership over the last six years at Rice Financial.”

• • •

Northwest goes global on pair of funds

(July 3, 2007) Northwest Mutual Funds added two new funds into its lineup, the Northwest Global Growth & Income Fund and the Northwest Quadrant Global Growth Portfolio, both of which will be available for sale immediately.

The Northwest Global Growth & Income Fund will be co-managed by Alliance Bernstein, which will manage the equity portion, and Aviva Capital Management, which will manage the fixed income portion.

The asset mix between equities and fixed income will be approximately 80% to 20%, and the fund will attempt to pay a monthly yield of 6 cents per unit or a yield of approximately 7%.

Within the equity portion of the Northwest Global Growth and Income Fund, Alliance Bernstein will manage a concentrated portfolio of 40 to 70 equities.

The Northwest Quadrant Global Growth Portfolio is the fifth Northwest Quadrant Portfolio introduced to market and the first that is 100% global. This portfolio will also strive to pay a monthly distribution of 6 cents per unit, a yield of approximately 7%.

“At Northwest we continually monitor trends in the market and the investment needs of our advisors and unitholders,” says Michael Butler, president of the firm. “The feedback is that income generation continues to be an important investment need and that more investors were looking to diversify into global markets. These new investments help to address both of those needs and add even greater depth to our global investment lineup.”

• • •

RBC bolsters fund offerings

(July 3, 2007) RBC Asset Management has announced the launch of the RBC Target 2025 Education Fund, which will build on the existing suite of target date funds that help parents save for their children’s education. The fund is designed to deliver growth up front, gradually becoming more conservative over time as a client’s target date approaches.

“Target date funds make it easy to manage investments for goals with specific target dates. Saving for a child’s education is a perfect application,” says Brenda Vince, president of RBC Asset Management. “While there are other potential uses for target date funds, we encourage investors to work actively with their advisor for more complex goals such as retirement, to ensure each client’s unique circumstances are considered.”

RBC Asset Management also announced the launch of Series T versions of five of its most popular funds: RBC Balanced Fund; RBC Balanced Growth Fund; RBC Canadian Dividend Fund; RBC North American Dividend Fund; and the RBC Global Dividend Growth Fund.

Series Ts attempt to be more tax-efficient by paying monthly distributions, which are expected to consist primarily of return of capital and capital gains. The target distribution is 8% annually.

• • •

(07/03/07) staff


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