By Staff | July 31, 2006 | Last updated on July 31, 2006
3 min read
Previous Brieflies this week: | MON | TUE | WED | THU |

(July 31, 2006) The Ontario Securities Commission alleged Monday morning that Biovail Corporation chairman, Eugene Melnyk, along with Biovail director and chief operating officer of Watt Carmichael, Roger Rowan, actively violated a number of insider trading securities laws. Watt Carmichael was also alleged to have mislead regulators and failed to have adequately supervised trading in Melnyk’s accounts.

The hearing, scheduled to take place in Toronto on September 21, will likely address OSC allegations that Watt Carmichael failed to adequately supervise trading in client accounts, and then actively mislead IDA and OSC staff by providing responses that were misleading or untrue and, further, altered documents in an effort to conceal information.

In the list of allegations specifically related to the dealer, the OSC says Watt Carmichael chairman and CEO, Harry Carmichael, and Michael McKenney, the firm’s chief compliance and CFO knew, or should have known, that Rowan had multiple roles as director of Biovail, that he was a member of Biovail’s audit committee, and that he was required to cease trading in Biovail securities during blackout periods prior to the release of the company’s earnings. Along with memo excerpts from Rowan to Melnyk outlining ways to “get the IDA to go away,” the OSC statement also discusses commissions generated by Rowan’s trading activities, ownership ties between the two companies and a detailed list of insider trading and cover-up allegations.

• • •

C.A. Bancorp launches Sentry Select closed end fund

(July 31, 2006) Merchant bank C.A. Bancorp has filed a final prospectus for the Sentry Select Total Strategy Fund, an exchanged-listed closed-end fund.

The trust will be actively managed by a team of Sentry Select’s top portfolio managers, using a long-short equity strategy with a long bias. At least 75% of the fund’s assets will be invested in a diversified portfolio of Canadian equity and equity-related securities, including income trusts. Up to 25% of the trust’s assets will be invested with a focus primarily on securities of private companies that managers believe to be near-term IPO candidates.

Brokers offering the fund earn 5% selling commission plus a 0.4% annual service or trailing commission. Management fees are 1.1% of the fund’s net asset value plus 25% of total returns that exceed 8% per year. Minimum investment is $2,000.

• • •

Connor, Clark & Lunn step up advisor marketing efforts

(July 31, 2006) Connor, Clark & Lunn Managed Portfolios announced this morning it has hired consultant, Craig Swistun, to be the company’s new vice-president of marketing and development.

Swistun has been involved with the company during the past year in a consulting capacity to help develop, coordinate and launch CC&L’s entry into the retail-managed asset market. Company president and CEO, Nick Mancini, says “with manufacturing and distribution experience, he truly understands the needs of financial advisors.”

• • •

Clients bullish about energy: TD

(July 31, 2006) A survey of U.S. retail investors by TD AMERITRADE suggests that clients are optimistic about energy, calling it one of the biggest investment opportunities for the remainder of 2006.

The group of do-it-yourself investors included in the “Independent Investor Survey” answered a series of questions about general market sentiment, sector outlook and hot investment opportunities. The group also offered up their thoughts on real estate and overseas events. The survey found that 51% of respondents are already invested in energy and 50% believe energy is going to be the “hot sector” over the next six months, while 97% who see energy as the next hot sector are willing to move their assets in that direction.

Nearly half of respondents say they expect a 6% to 12% return on their investments in the next year while 30% of respondents expect more than a 12% return. Half of those who say they moved money out of equities in the past month shifted their assets into money market and other savings accounts.

• • • staff


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