By Staff | August 28, 2006 | Last updated on August 28, 2006
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(August 28, 2006) The ASC has issued a notice of hearing into allegations against a number of people related to Maitland Capital, an Ontario-based company that has never been registered with the Alberta regulator.

The notice of hearing names Maitland’s two directors, Al Grossman — also president of the company — and Hanoch Ulfan, along with several individuals who are listed as sales reps or investor relations reps.

The ASC has slapped all involved with a cease-trade order as well as denying any exemptions they might claim under Alberta’s Securities Act. Maitland and its directors are already facing investigations in New Brunswick and Ontario.

The ASC alleges that Maitland engaged in illegal distribution, by raising $70,000 from 32 investors in Alberta without filing a prospectus, according to a report of exempt distribution report filed December 20, 2004. Between December 16, 2004 and January 31, 2006, the company raised an additional $2.7 million from 517 Alberta investors.

The company claimed the trades were exempt from regulations requiring a prospectus as they were among accredited investors. The ASC has disallowed this exemption.

The ASC states that Maitland staff and executives made a number of misrepresentations to investors, including the claim that Maitland would soon list on the TSX and that its share value would “skyrocket” once it was listed. The ASC alleges that one investor was contacted 30 times in one week, and was pressured to buy Maitland stock.

Individually, Grossman also faces allegations that he made misrepresentations to an investigator from the ASC.

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Mavrix files flow-through LP prospectus

(August 28, 2006) Mavrix Fund Management has announced it has filed the preliminary prospectus for the Mavrix Explore 2006-II FT Limited Partnership, which will invest in a diversified portfolio of flow-through shares.

The fund will focus primarily on the mining industry, but will also include some exposure to the energy sector. The fund has a preset cap of $50 million and is the eighth Resource Flow-Through Limited Partnership to be managed by Mavrix.

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RBC launches new income trust fund

(August 28, 2006) RBC Asset Management has announced the launch of the RBC Canadian Diversified Income Trust Fund, which will provide investors with a predictable stream of tax-efficient income.

“At 10% of the S&P/TSX Composite Index, income trusts have grown to represent a significant part of the Canadian market, which we expect to continue to grow,” said Brenda Vince, president, RBC Asset Management Inc. “We’re pleased to now offer investors a specific solution that offers diversified exposure to income trusts, along with the benefits of experienced professional investment management.”

The fund will initially offer a monthly distribution of $0.08 per unit, which represents an annual payout rate of 5.5%, based on the initial offering price of $17.50 per unit.

In other news, RBC Capital Markets announced the expansion of its research, sales and trading capabilities for the energy sector. Oil and gas services analyst Matt MacKenzie will join the Calgary office, while 20-year veteran Robert Lee was named manager of resource equity sales for North America.

“With 50 traders covering more than 800 institutional clients globally, our goal is to be a dominant force in trading energy stocks on the TSX, NYSE and UK-based exchanges,” said Derek Flood, managing director and co-head of liability trading at RBC Capital Markets, who will lead RBC’s energy initiative.

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IDA upgrading ComSet

(August 28, 2006) The IDA has announced it will upgrade its complaints and settlement reporting system within the coming weeks, although the core functions of the system will remain unchanged.

What will change, however, is the web address, along with some added capabilities and new login identification. The IDA has promised more details closer to the implementation date.

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(08/28/06) staff


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