By Staff | October 25, 2006 | Last updated on October 25, 2006
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(October 25, 2006) TSX Group has agreed to buy Shorcan Brokers Ltd. and will acquire Scotia Capital’s fixed income indices, in a pair of moves aimed at shoring up its presence in the fixed income market.

“Our stated intention is to diversify beyond equities into various asset classes, including fixed income,” says TSX Group CEO Richard Nesbitt. “We already own a 47% interest in Inc., the leading Canadian electronic fixed income trading platform. Through these most recent initiatives, we will now be the leading provider of fixed income indices in Canada, and be able to offer IDB fixed income trading to our customers.”

Shorcan Brokers was Canada’s first fixed income inter-dealer broker and has served the financial industry for the past 30 years. It is owned by its employees, who will join TSX Group at the closing of the deal, expected in Q4 of this year.

Scotia Capital’s bond indices are the most widely cited and followed in Canada, with the Universe Bond Index being the most widely recognized measure of the Canadian marketplace. In purchasing this line of business, TSX Group acquired the PC Bond analytics package, the ScotiaBond portfolio attribution package and Scotia Capital’s historical price database.

The two acquisitions will cost TSX Group $55 million.

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CFA exam sets record

(October 25, 2006) A new record has been set at the most recent sitting of the CFA exam — it saw 12,314 candidates pass their final level of the CFA Program, worldwide.

“CFA charter-holders have demonstrated commitment to their profession through completion of a rigorous curriculum and their embarking on a lifelong commitment to learning,” said Jeff Diermeier, CFA, CFA Institute president and CEO. “Employers and clients look to charter-holders for leadership given their knowledge and their passion about investing.”

There are currently more than 74,000 charter-holders around the globe, and Diermeier expects that total to grow to nearly 80,000 by early 2007.

Among those passing the recent Level III exam, 10% (1,287) were from Canada, ranking the country in fourth place among some much larger population centres. The U.S. was home to the largest group, making up 40% of those passing the exam, followed by Asia (26%) and Europe (19%).

“We estimate there to be 200,000 serious investment professionals in the United States who might qualify for the CFA designation, as well as 90,000 in the United Kingdom and 80,000 in Japan, for example, with hundreds of thousands elsewhere across the globe,” said Timothy McLaughlin, CFA, CFO for CFA Institute.

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IDA fines, suspends Vancouver man

(October 25, 2006) The IDA has imposed a fine of $20,000 and a six month suspension on Young Ho Kim, at all material times an approved person with the Vancouver offices of BMO Nesbitt Burns and Canaccord Capital.

As part of the settlement, Kim admitted that between December 2003 and June 2004 he made discretionary trades in two joint accounts that were not designated for such transactions. In February 2005, he also attempted to personally settle a client complaint without informing his firm.

On top of the $20,000 fine, Kim must also disgorge $2,168 in commissions and fees. After his six-month suspension has elapsed, he will be subject to close supervision for 12 months. He must also rewrite and pass the Conduct and Practices Handbook exam and pay $5,000 in costs.

He is no longer employed with an IDA Member firm, having been terminated by Canaccord on March 8, 2006.

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RBC buys New York broker dealer

(October 25, 2006) RBC Capital Markets has announced it is buying New York-based boutique broker, Carlin Financial Group, subject to regulatory approval. The deal is expected to close in Q1 of 2007.

According to a press release issued by RBC, Carlin’s proprietary algorithmic trading and execution is among the fastest services in the market, processing 35 million shares per day.

“We believe that this acquisition allows us to create a leading North American electronic execution platform for investors and expand into multi-asset class electronic trading,” said Greg Mills, RBC Capital Markets’ head of global equity sales and trading. “Emerging hedge fund managers, professional traders and other clients of the CFG business will continue to receive the same high quality of service they’ve come to rely on, and will now also have access to the full range of capital markets products and services we offer in the U.S.”

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AGF expands RSP loan program

(October 25, 2006) AGF Trust will be offering enhancements to advisors using its RSP loan program, including an online list of pre-approved clients and extended customer service hours.

“Advisors tell us they need loan products and services that help them build and strengthen their client base,” said John Bennett, executive vice-president at AGF Trust. “Our web-based lending solutions and our industry leading service will do just that.”

AGF Trust will extend a loan up to $50,000 without income verification, charging rates starting 1% below prime. AGF also guarantees approval for loans up to $2,500. Advisors can access their list of pre-approved clients by logging on to the AGF advisor website.

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Dynamic temporarily closes cash fund

(October 25, 2006) Goodman & Company, Investment Counsel, has announced that it will temporarily close the Dynamic Money Market Class to new lump-sum investments in order to avoid “potential adverse tax consequences” for Dynamic Global Fund Corporation.

The first temporary closure took effect October 23, 2006. Investors retain their right to switch into the money market fund from other Dynamic funds and may continue to invest through a pre-authorized chequing plan.

The fund currently holds over $221 million in assets, according to Morningstar Canada.

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(10/25/06) staff


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