By Staff | July 5, 2007 | Last updated on July 5, 2007
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(July 5, 2007) On Thursday the IDA announced that it found Edmonton’s Moin Mirza guilty of failing to cooperate with an investigation, while in another case it fined Bruce Calvin Deck $138,212 for various offences.

In Mirza’s case, the IDA needed to talk to the advisor but was unable to get a hold of him for several months. On August 15, 2006, the association sent Mirza a letter, demanding that he appear at an interview on September 7, but he failed to appear.

Finally, on May 8, 2006, Mirza met with enforcement staff and provided the information they were looking for. However, the eight-month delay was unacceptable to the IDA, which found that his behaviour was “consistent with a lack of any desire to cooperate and an intentional avoidance of the request for cooperation.”

A penalty will be determined at a later date.

As for Deck, his fine was accompanied by a two-year suspension.

Working at TD Waterhouse in Prince George, B.C., Deck was accused of a number of violations including participating in off-book transactions, engaging in personal financial dealings with clients, and engaging in poor business practices, among other things.

His punishment also includes another $15,000 fine for costs and, once his suspension is over, he’ll be required to rewrite and pass an exam based on the Conduct and Practices Handbook Course and the Canadian Securities Course. He’ll also be on probation for a year.

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TD Asset Management introduces new pooled funds

(July 5, 2007) TD Asset Management is broadening its institutional solution set by adding three new pooled funds.

Two of these funds — the TD Emerald 130/30 Enhanced Canadian Equity Pooled Fund Trust and the TD Emerald 130/30 Enhanced U.S. Equity Pooled Fund Trust — are “active extension” or 130/30 funds. The other fund is a multi-strategy portable alpha fund called TD Emerald Multi-Strategy Canadian Bond Fund.

“[These] 130/30 funds have proven very popular with U.S. institutional investors and TDAM is excited to be one of the first managers to bring these funds to the market in Canada, including a Canadian equity version,” said Robin Lacey, managing director.

Dino Bourdos, vice-president and director, portfolio management, added, “Clients large and small are searching the marketplace for strategies to generate additional return without substantially increasing risk — portable alpha is a proven and efficient risk-managed approach worth investigating.”

The portable alpha fund combines the asset management company’s leading index management and product structuring skills with its successful proprietary alpha-generating strategies. It targets 3% excess return over the Scotia Capital Universe Bond Index with little additional risk.

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Citizens Bank offers new high interest savings account

(July 5, 2007) Citizens Bank of Canada has announced the Citizens Inhance Cash Multiplier Account, which offers Canadians an annual interest rate of 3.85% and the ability to hold deposits in their investment portfolios. The online bank is teaming up with Inhance Investment Management on this project.

“We are very excited to be embarking on this joint venture with our sister company,” said Kerry Ho, Inhance’s CEO. “There is a real demand for this product in the market today, and we are pleased to be able to offer a new alternative for investors.”

“This is a natural product extension for us, and we see a need for it in the marketplace. We believe this is an excellent option for a client’s cash deposits,” added Jason Farris, president and CEO of Citizens Bank.

The account is available only to clients of Canadian advisors, and requires an initial deposit of $5,000.

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Mellon Bank buys ABN AMRO Mellon

(July 5, 2007) After working together for three years, Mellon Bank has decided to purchase ABN AMRO’s 50% share in ABN AMRO Mellon Global Securities Services.

The joint venture was launched by shareholders in 2003 to provide global custody and related services to institutions outside North America.

When the deal closes — likely in Q3 2007 — ABN AMRO Mellon will become part of the Bank of New York Mellon Corporation, a new company created by the merger of the Bank of New York Company and Mellon Financial Corporation. The terms of the agreement were not disclosed.

“This is a landmark day for ABN AMRO Mellon, which since its inception has continually raised the bar and clients’ expectations when it comes to delivering service excellence and product innovation,” says Nadine Chakar, ABN AMRO Mellon’s CEO. “From the outset, the joint venture was structured to avoid disruption in the event of any change of ownership. Accordingly, ABN AMRO Mellon’s focus on our clients will not waver, and we will maintain the highest degree of operational continuity as we take our business to the next level.”

Chakar will continue on as CEO of ABN AMRO Mellon, while taking on a new role at the Bank of New York Mellon as head of EMEA for the BNY Mellon Asset Servicing group.

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Russell Investments hires new fund company

(July 5, 2007) Russell Investments Canada announced Thursday that it has hired a new company to manage its overseas equity fund.

AllianceBernstein will be responsible for about 20% of the fund, specializing in value investing. This arrangement means the Boston Company will cease managing the fund.

“We believe that AllianceBernstein is a highly ranked value manager that offers broad value exposure to the fund. We have high confidence in the excess return drivers of this product,” says Sadiq Adatia, a portfolio manager who’s involved in the Russell Overseas Equity Fund.

(07/05/07) staff


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