Post by Mack Chen
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Pension manager loses $4-billion on investment bet gone wrong by Mack Chen The Alberta Investment Management Corp. — which manages pension assets, sovereign wealth, and other public money — lost billions of dollars on wrong-way volatility trades when markets crashed earlier this year, and then shut down the strategies... Read More |
Most actively managed funds failed to beat benchmarks by Mack Chen Most actively managed Canadian mutual funds failed to beat their benchmarks over a one-year period, the mid-year scorecard from S&P Dow Jones Indices says. ix out of seven fund categories underperformed against their benchmarks, the report... Read More |
8 big SEC enforcement trophies in fiscal 2018 by Mack Chen The Securities and Exchange Commission released its annual enforcement report for fiscal 2018, which ended Sept. 30. The agency touted what it called a “high level of activity” comprising 821 enforcement actions that resulted in $... Read More |
Essential tax numbers: updated for 2019 by Mack Chen Working clients Maximum RRSP contribution : The maximum contribution for 2018 is $26,230; for 2019, $26,500. TFSA limit : In 2018, the annual limit is $5,500, for a total of $57,500 for someone who has never contributed and has been eligible for ... Read More |
731,000 Canadians borrow money to pay for prescriptions by Mack Chen Some 731,000 Canadians borrow money to pay for drugs prescribed by their doctors, according to new research by the University of British Columbia. Among those who reported borrowing to pay for prescriptions, 33 per cent said they borrowed to p... Read More |
Questrade to pay $2.9-million settlement to OSC by Mack Chen Questrade will make a $2.9-million payment to the OSC as part of a settlement agreement over conflict of interest. The day after announcing the sale, Questrade purchased approximately $15 million in WisdomTree ETFs for its client portfolios. T... Read More |
Canada-model pensions are most efficient system by Mack Chen Using a Canada-model pension plan, employees would see $5.32 in retirement income for every dollar they contribute compared to the typical $1.70 resulting from an individual approach. The World Bank has defined Canada-model pension plans ... Read More |
Half of U.S. institutional investors don’t invest by Mack Chen more than half (59 per cent) of institutional investors use commingled and mutual funds. Fewer (37 per cent) use separate accounts, overlays (27 per cent) and direct securities (26 per cent). As for asset classes, two-thirds (65 per cen... Read More |
Three Toronto men charged for illegally trading securities by Mack Chen Carlos Da Silva, Sei-Jin Ki and Kamal Singh “Bobby” Athwal were business associates who sold approximately $140,000 worth of securities in Toronto Scientific Medtech Inc. to Ontario investors in 2016 and 2017,... Read More |
4 Big Rip-Offs To Avoid by Mack Chen Mortgage life insurance Extended warranty coverage Balance protection insurance from credit card lenders Door-to-door sales pitches >>> Read More |
IIROC fines TD Waterhouse $140K for inadequate supervision of advisor’s trading by Mack Chen The advisor, David Gary Durno, traded in securities and government bonds for two senior clients from 2010 to 2015 that were not in their financial interests and generated large commissions, the IIROC settlement agreement says. Th... Read More |
TD Ameritrade fined $500,000 by Mack Chen The Securities and Exchange Commission fined TD Ameritrade Inc. $500,000 on Monday for failing to file certain required suspicious activity reports after the firm halted business with 111 independent investment advisers. Activities of ... Read More |
access your own money, please pay 16% of interest by Mack Chen About 10,000 investors — many of them retirees — were swindled out of $1.2 billion they had sunk into a now-bankrupt real estate developer that federal regulators say was a Ponzi scheme . A couple of weeks ago, a little-known hedge f... Read More |
TORONTO ADVISOR FINED $150K FOR NOT ADDRESSING TWO CLIENTS’ BEST INTERESTS by Mack Chen A Toronto financial advisor has been fined $150,000, inclusive of disgorgement. Durno “recommended and implemented active trading in new issue securities and government bonds” for two clients over a period of five years (2010 to 2015). The two ... Read More |
RFMI paid its reps 10 basis points more in commission for selling RBC PS Funds over the other RBC and third-party funds by Mack Chen RFMI paid its reps 10 basis points more in commission for selling RBC PS Funds over the other RBC and third-party funds, says the settlement agreement. The higher commissions added up to more than $24.5 million and average additional annual commission... Read More |
TAXPAYERS ON THE HOOK by Mack Chen Taxpayers are on the hook for the unfunded liability of federal pension plans. “Ottawa’s unfunded pension liability is nearly $100 billion worse than stated.” These defined-benefit pensions have pension promises guaranteed by ... Read More |
Embrace volatility with dollar-cost averaging by Mack Chen Dollar-cost averaging is defined as “buying a fixed dollar amount of an investment on a regular schedule, regardless of price,” says Dustin Barrow, a certified financial planner with Abacus Wealth Management Inc. in Edmonton. The “cost... Read More |
SEC ORDERS US$35-MILLION FINE OVER DISCLOSURE OF YAHOO HACK by Mack Chen The company formerly known as Yahoo is paying a US$35 million fine to resolve federal regulators’ charges that the online pioneer deceived investors by failing to disclose one of the biggest data breaches in internet history. Personal da... Read More |
PUBLIC COMPLAINTS ABOUT FINANCIAL PLANNING TRIPLE IN 2017 by Mack Chen The Financial Planning Standards Council (FPSC) received three times as many public complaints about financial planning in 2017 as in the previous year. Of the 76 complaints received, 21% were public complaints, compared to 6% in 2016. More than half... Read More |
Build Flexibility Into Your Retirement Plan by Mack Chen If your retirement plan only works as long as nothing goes seriously wrong, you are not properly prepared for retirement. It’s important to plan ahead. Knowing how you will handle certain crises can go a long way toward minimizing the financial fallo... Read More |
TRAILING FEES PAID TO TD BROKERS RESULT IN PROPOSED CLASS ACTION by Mack Chen Trailing commissions paid to brokers who sell mutual funds are under fire in a proposed class action against TD Asset Management (TDAM). Siskinds LLP in London, Ont. and Bates Barristers P.C. in Toronto have filed the class action, a release said... Read More |
SEC ORDERS THREE ADVISERS TO PAY $12 MILLION TO HARMED CLIENTS by Mack Chen The U.S. Securities and Exchange Commission says PNC Investments LLC, Securities America Advisors Inc., and Geneos Wealth Management Inc. failed to disclose conflicts of interest and violated their best-execution duties by putting clients in higher-cost mu... Read More |
10 low-tech stock funds beating the S&P 500 by Mack Chen VictoryShares US 500 Volatility Wtd ETF, 12-month return: 17.77%. BlackRock Advantage Large Cap Core Fund, 12-month return: 17.89% USA Mutuals Vice Investor Fund, 12-month return: 18.37% BrandywineGLOBAL - Dynamic US Large Cap Value... Read More |
Carleton University support staff strike to defend DB pension by Mack Chen Carleton University employees are beginning job action Monday morning in defence of their defined benefit pension plan. Staff is arguing that the university is attempting to strip pension language from its employees’ collective agreement.&nbs... Read More |
How Retirees Can Make Good Use Of TFSAs by Mack Chen Taxes may be the single biggest expense in retirement, especially once you convert a large RRSP to a RRIF . Forced minimum withdrawals often put retirees in the position of having to take out more money than they need, pushing them into a higher ta... Read More |
4 IN 10 CANADIANS HAVE MADE WITHDRAWALS FROM RRSPS by Mack Chen 40% of Canadians have made a withdrawal from their RRSPs. Those who have done so have withdrawn an average of $20,952—an increase of $3,739 compared to last year’s average of $17,213. The reasons for withdrawing from RRSPs include: purc... Read More |
Claiming Your Investment Expenses by Mack Chen You can save on your taxes by claiming certain investment expenses which can reduce your taxable income. You can claim the fees you pay for that investment advice; any fees paid for the management of your account; fees for accountan... Read More |
Almost a million Canadians cut food, heat spending to pay for drugs by Mack Chen Almost one million Canadians cut spending on necessities such as food and heating to afford prescription drugs in 2016, according to a report by researchers at the University of British Columbia, Simon Fraser University, McMaster University and t... Read More |
Canadians estimate $756K will provide a comfortable retirement by Mack Chen Canadians estimate, on average, they’ll need $756,000 in personal savings for a comfortable retirement, according to the survey. Millennials believes they’re need the most, at $917,000, compared to generation X ($842,000) and baby boomers ... Read More |
A Sensible RRSP vs TFSA Comparison by Mack Chen When you put money in an RRSP and invest the tax refund, you’re using pre-tax dollars. The money grows inside a tax sheltered account and then you pay taxes on your withdrawals years later in retirement. The opposite is true of a TFSA – you ... Read More |
TRADERS CHARGED WITH MANIPULATING U.S. FUTURES MARKETS by Mack Chen Federal prosecutors are charging a group of traders with manipulating U.S. futures markets through a practice known as spoofing. That’s when a trader places buy or sell orders with the intent to cancel them before the transactions ... Read More |
NATIONAL BANK FINED $700K FOR DISCLOSURE FAILURE by Mack Chen National Bank has been ordered to pay a $700,000 administration fee for failing to provide timely delivery of disclosure documents to investors who purchased ETFs. The delivery failure affected a total of 128,199 ETF purchases involving 44,857... Read More |
Using Annuities To Create Your Own Personal Pension In Retirement by Mack Chen The reason why retirement planning is so difficult is because the one variable we need to know – how long we have to live – is impossible to predict. Sure, we have mortality tables and family history to help guide us, but statistically speaking... Read More |
WHAT’S NEW OR CHANGED FOR 2017 TAX-FILING SEASON by Mack Chen Tuition, education and textbook credits . As of Jan. 1, 2017, the federal education and textbook credits were eliminated. However, clients can still carry forward unused amounts from previous years. Also, with certain conditions, t... Read More |
SEARS DIVIDEND PAYMENTS UNDER REVIEW BY COURT MONITOR by Mack Chen Faces a more than $260-million pension deficit and has laid off roughly 15,000 employees, Sears made a $102-million dividend payment on Dec. 31, 2012, and a $509-million dividend payment on Dec. 6, 2013. Hundreds of millions of dollars of dividends dole... Read More |
Legislation would make it harder for investors to sue mutual funds over high fees by Mack Chen Legislation that would make it more difficult for investors to sue mutual fund companies for excessive fees was poised to advance in the House on Wednesday. The House Financial Services Committee was set to take up a bill that wo... Read More |
LAWSUIT ALLEGES CANADIAN BANKS MANIPULATED BENCHMARK RATE by Mack Chen The Fire & Police Pension Association of Colorado filed the claim against BMO, Bank of Nova Scotia, CIBC, National Bank of Canada, Royal Bank of Canada, TD and three others at the United States District Court for the Southern District of New York on Fr... Read More |
Massive investment fraud by Mack Chen For almost five years, the SEC said the Woodbridge Group of Companies operated a billion-dollar Ponzi scheme, taking advantage of 8,400 investors, many of them elderly. What is striking about the alleged fraud is that it operated in plain sight. ... Read More |
HEDGE FUND MANAGER PLEADS GUILTY TO DEFRAUDING INVESTORS by Mack Chen The owner of two Massachusetts-based investment advisory firms has pleaded guilty to defrauding his investors of millions of dollars to fund his own lavish lifestyle. Federal prosecutors say 44-year-old Yasuna Murakami, of Cambridge, pleaded g... Read More |
IIROC FINES REP $90K FOR FAILURE TO ADDRESS CONFLICT AND CLIENT COMPLAINT by Mack Chen Kirkland earned about $477,000 in net commissions in 2013 and 2014 as a result of new issues purchases, the agreement says. BMO earned fees and commissions on these same purchases of about $1,908,900. “The commissions paid to him by BMO ... Read More |
CPP INCREASE WILL RAISE FAMILY COSTS BY MORE THAN $2K by Mack Chen More than 90% of Canadian families with children will pay more once Canada Pension Plan (CPP) increases are fully implemented. All (almost 99%) middle-income Canadian families with children (incomes ranging from $77,839 to $110,201) will ... Read More |
7 Income Splitting Strategies For Families by Mack Chen Our Canadian tax system has graduated tax brackets that result in people with earnings in higher tax brackets paying a greater amount of tax. Income splitting is a tax planning technique designed to shift income from a high-income earning taxp... Read More |
Biggest Finra penalties of 2017 by Mack Chen Financial Industry Regulatory Authority fines have been climbing for the past decade. Last year the brokerage industry saw a dramatic year-over-year increase in the Finra fines against broker-dealers, hitting a record and totaling a staggering $173.8 milli... Read More |
New CPP, OAS benefit amounts take effect for 2018 by Mack Chen With the new year underway, recipients of Canada Pension Plan and old-age security benefits are getting a modest increase from the federal government. Effective Jan. 1, 2018, CPP payments will increase by 1.5 per cent for those already re... Read More |
How Will The New CPP Changes Affect You? by Mack Chen The Federal and Provincial finance ministers met again earlier this week to pursue their ongoing discussions on how to improve the Canada Pension Plan. The majority of the provinces agreed to make the following changes to CPP: 1. “Drop-out&rdqu... Read More |
10 Financial Lessons To Share With Friends by Mack Chen 1. Avoid credit card debt like the plague It’s impossible to go through life without incurring at least some debt. I’ve had student loans, credit card debt, a car loan, line of credit, and finally a mortgage. Carrying a balanc... Read More |
Important information for 2017 RRSP Contributions and 2017 Tax Reporting by Mack Chen 2018 1 st 60 Day RRSP Contribution Key Dates Jan 2 nd , 2018 to March 1 st , 2018 3pm acceptance cut-off on March 1 st , 2018 for direct trades 4 pm cut-off on March 1 st , 2018 for wire trades (coded Current Period) ... Read More |
Woodbridge bankruptcy burns advisers and real estate investors by Mack Chen Woodbridge Group of Companies, a luxury real estate developer, last week missed payments on notes sold to investors and yesterday filed chapter 11 bankruptcy. Based in Sherman Oaks, Calif., Woodbridge has raised over $1 billion from investors.... Read More |
Bank of Canada CONSIDERS ITS OWN DIGITAL CURRENCY by Mack Chen The Bank of Canada is considering the merits of establishing a digital currency as interest in cryptocurrencies like bitcoin reaches a fevered pitch. There are merits to creating a central bank digital currency as society starts to move away from cash, ... Read More |
How Emotional Investing Can Cost You by Mack Chen When choppy market returns are accompanied by uncertainty and volatility associated with major world events, even the most experienced investors can find it difficult to tune out the noise and stay disciplined. In the face of disappointing sho... Read More |
ALBERTA MAN FACES $50K PENALTY, MULTIPLE BANS by Mack Chen An Alberta Securities Commission panel has sanctioned Wayne Loderick Bennett for breaching Alberta securities laws in connection with the distribution of securities of Environmental Sentry Services Inc. (ESSI). The ASC says that Bennett was th... Read More |
5 Reasons to Start an RESP (Registered Education Savings Plan) by Mack Chen Government grants mean free money! The federal government puts in 20 cents for every dollar you contribute to an RESP – up to $500 per year – under a program called the Canada Education Savings Grant (CESG). That is a guaranteed 20... Read More |
CANADA BEHIND PEERS IN RAISING RETIREMENT AGE by Mack Chen Canada is the only G7 country without a plan to increase its age of eligibility, after the Liberal government scrapped the plans of its predecessor to increase the age to 67 by 2023. (In some cases, such as in the U.K. where there’s a plan to ra... Read More |
What Happens If Your Child Doesn’t Go To School? by Mack Chen Question: My wife and I have a child, and have an RESP – Registered Education Savings Plan – individual plan for her education savings. We’ve been doing a good job of contributing to the RESP since our daughter was born so there&rs... Read More |
CRA MISINFORMED 30% OF CALLERS, AUDITOR FINDS by Mack Chen “When we called the call centres of Canada Revenue Agency and we posed our questions, about 30% of the responses that we got back were not right,” Ferguson told a news conference—a “very concerning” finding that could be causi... Read More |
Ontario pension regulator seeks Sears pension windup by Mack Chen Ontario’s pension regulator is seeking the windup of the Sears Canada Inc. pension plan as the company continues the liquidation process. The move comes as the court dealing with Sears’ restructuring under the Companies’ Cr... Read More |
HOW YOU COULD SAVE $200 MONTHLY by Mack Chen Canadians overwhelmingly admit that restaurant food is their most popular financial guilty pleasure, reveals a survey by Capital One Canada and Credit Canada. Almost three-quarters (72%) of those surveyed say they dine out more than a few times a month, wh... Read More |
Estate Plan Mistakes by Mack Chen 1. Using a will when privacy is at stake While many individuals prefer a will-based estate plan, wills create a record for public consumption, whereas revocable trusts protect the privacy of an estate. “They both do the same thing: [dic... Read More |
FRENCH RETIREES COULD FACE TAX HIKE ON PENSIONS by Mack Chen Thousands of retired French workers are protesting in cities around the country over a new tax hike on their pensions. The retirees are joining a growing crowd of critics of French President Emmanuel Macron — he’s already faced pro... Read More |
SHEDDING LIGHT ON THE CPP BENEFIT by Mack Chen Service Canada found that for average monthly survivor pensions starting in March 2017, those younger than 65 received $429.33 (approx. $5,200 annually), whereas those 65 and older received $315.77 (approx. $3,800 annually). In comparison, a 65-year-old qu... Read More |
SEARS DB PLAN A REMINDER THAT SAVINGS SHOULD BE DIVERSIFIED by Mack Chen Sue Earl, a 38-year Sears Canada employee, was shocked when she found out she would only initially receive 81% of the value of her pension as part of the company’s insolvency process. The 64-year-old from Cobourg, Ont., had assumed her d... Read More |
CANADIAN FAMILIES’ TAX BILLS KEEP RISING by Mack Chen A 2017 study by the Fraser Institute, referred to as the Canadian Consumer Tax Index, 2017 edition , finds the average Canadian family continues to spend more on taxes than housing, food and clothing combined. The index tracked the total tax bill o... Read More |
Taxes surpass housing as biggest expense for Canadians by Mack Chen The average Canadian family spent 42.5 per cent of their income on taxes last year, more than they spent on housing and other expenses combined, according to a new report from the Fraser Institute. The total tax bill considered in the study reflects tax... Read More |
Montreal police and city reach agreement on pension changes by Mack Chen Montreal police officers have voted in favour of a new contract that puts an end to a long-running dispute over pension reforms. The city’s police union, the Montreal Police Brotherhood, says 95.3 per cent of officers who voted approved ... Read More |
Sears Canada retirees launch motion to force windup of pension plan by Mack Chen The dispute over the fate of the pensions of Sears Canada Inc. retirees and employees will be back on the agenda this week as lawyers go to court to seek the windup of the company’s defined benefit plan. Last week, counsel for the employ... Read More |
Ontario aerospace workers facing 25% pension cut by Mack Chen Workers about to lose their jobs at Northstar Aerospace’s operations in Milton, Ont., are now facing the prospect of a 25 per cent cut to their pensions. After returning from the holiday break last year, workers “were given th... Read More |
Ex-Sears Canada employees facing 19% cut in commuted-value payments by Mack Chen Former Sears Canada Inc. employees who opt to take the commuted value of their defined benefit pension are facing an immediate 19 per cent reduction in their entitlements. According to an update to former employees from their legal counse... Read More |
RBC to pay $560,000 for transferring retiree's pension by Mack Chen A Finra arbitration panel has awarded a Wyoming couple $559,612 in a claim against RBC Capital Markets and three of its brokers for having transferred funds improperly from a defined benefit plan. The transfer, from the account of claimants Jo... Read More |
Canada facing $13.4-trillion retirement savings deficit by 2050 by Mack Chen Canada is facing a $13.4-trillion retirement savings deficit by 2050, up from a $2.7-trillion shortfall in 2015, according to a new report by Mercer and the World Economic Forum. Among all eight countries included in the report &mdash... Read More |
SCOTIA CAPITAL FINED $200,000 FOR FAILURE TO SUPERVISE REPS by Mack Chen Scotia Capital admitted it failed to adequately supervise two registered representatives when they recommended unsuitable securities transactions for clients. Pursuant to the settlement agreement, Scotia Capital agreed to the following p... Read More |
Sears Canada agrees to continue special payments to DB plan, retiree benefits by Mack Chen Sears Canada Inc. has reversed course and will continue to make special payments to its defined benefit pension plan and provide post-employment benefits plans until Sept. 30, 2017. The agreement, which the company reached with employees and r... Read More |
Continued DB special payments would imperil Sears operations, CFO warns by Mack Chen Requiring Sears Canada Inc. to continue special payments to its defined benefit pension plan would put the company’s operations at risk... The affidavit follows the company’s motion in June to suspend the special payments of $... Read More |
Finra makes up for 2016 operating revenue hit with big increase in fine income by Mack Chen Finra's operating revenues dropped to $844.6 million in 2016 from $898.7 million in 2015, according to the report . But fines increased to $173.8 million in 2016, up from $93.8 million in 2015. >>> Read More |
Sears Canada motions on pension, health benefits ‘concerning to retirees’ by Mack Chen The initial court order filed Thursday requires the company to pay all outstanding and future wages, as well as health and pension benefits, “to the extent that such expenses are . . . payable by the Sears Canada entities,” he says. But the ... Read More |
Sears Canada seeking to suspend special payments as pension found to be 81% funded by Mack Chen Facing a monthly obligation to put $3.7 million a month into its pension plan to make up for a funding shortfall, Sears Canada Inc. is planning to ask the court to relieve it of its special payments while it restructures. “Sears Canada cannot affo... Read More |
MFDA FINES DESJARDINS $200K AFTER REP MISAPPROPRIATES FUNDS by Mack Chen Desjardins Financial Security Services faces a fine of $200,000 and costs of $25,000 after the MFDA found it failed to investigate and prevent the dealings of a former advisor. Between February 2007 and December 2015, while regi... Read More |
Sears faces $300M retirement benefit shortfall as retailer seeks CCAA protection by Mack Chen While Sears Canada Inc. shareholders deal with stock losses as the company moves to file for bankruptcy protection, pension plan members and retirees face worries over a $308.6-million deficit related to its retirement benefit obligations. Accordin... Read More |
7 common investment mistakes to avoid by Mack Chen 1. Falling in love with the story If you fall for the story behind a company, or its product, you may not see fundamental flaws, poor market conditions, or overpricing of the stock. Marketing experts agree the best sales job is achieved through telling ... Read More |
ALL ABOUT DIVIDEND TAXATION by Mack Chen Dividend taxation can be confusing, but it’s part of our tax system’s theory of integration: the idea that an individual should pay the same amount of tax whether income is earned personally or through a corporation. Dividends are distributi... Read More |
4 Reasons Why You Make A Lot Of Money But Have None by Mack Chen Why does it feel like no matter how much you make, you never have enough money? The obvious answer is you're spending too much. But where is it going? And why are you spending so much? Let's be honest, it's partly because no one l... Read More |
Why You Still Can’t Trust Your Financial Adviser by Mack Chen Your new financial adviser has a well-decorated office, a firm handshake, and a bright smile. After an hourlong meeting, you leave with what you think is a state-of-the-art investment portfolio. You feel financially secure, taken care of. It’s als... Read More |
INVESTOR ADVOCATE SAYS BANKS DON’T DEAL IN GOOD FAITH by Mack Chen Federal MPs are hearing testimony from former bank employees today as they explore allegations of questionable — and even illegal — sales practices by some of the country’s largest financial institutions. The committee will hear from f... Read More |
Most Canadians expecting to fund own retirement by Mack Chen Nearly a third (32 per cent) of Canadians don’t believe government benefits will still be available when they retire, according to new research by Natixis Global Asset Management. Its survey of 300 Canadians found 78 per cent expect to fund their ... Read More |
More Canadians seeking CPP disability benefits have denials overturned on appeal by Mack Chen Nearly half the Canadians who seek to have decisions denying them access to Canada Pension Plan disability benefits are successfully appealing the rulings, according to a new statistic that is giving experts cause for concern. Michael Ferguson’s F... Read More |
21% of Canadians believe public pensions will be defunct when they retire by Mack Chen One-fifth (21 per cent) of working age Canadians believe public pensions will no longer exist when they reach retirement, according to a new report by HSBC. Its annual look at the future of retirement , which surveyed more than 18,000 people in ... Read More |
Biggest pension systems face $224-trillion funding gap by 2050 by Mack Chen By 2050, the six countries with the world’s largest pension systems will have a combined funding gap of $224 trillion largely due to demographic trends, according to a new study by the World Economic Forum. The report found Australia, Canada, Japa... Read More |
BCSC PERMANENTLY BANS VANCOUVER MAN, FINES HIM $125,000 by Mack Chen The BCSC found that Brendan Schouw accepted $1 million from an investor, redirected some of the funds into his own account, and spent about $75,000 of it on his personal mortgage payments and a separate property management business. The in... Read More |
IIROC SUSPENDS, FINES REP $120,000 FOR UNSUITABLE INVESTMENTS, DISCRETIONARY TRADING by Mack Chen As a result of Yaskiw’s investment recommendations, a Saskatchewan couple planning to retire lost $125,000 of their savings, says IIROC, which finds Yaskiw frequently traded in high-risk securities, largely in the energy sector, and employed speculat... Read More |
MAN CONVICTED FOR FRAUDULENT RRSP SCHEME by Mack Chen James Harvey diverted $2.5 million of investors’ funds for his own use and failed to report it as taxable income, evading federal taxes of $673,871, CRA says in a release, citing court records. Cameron has not yet been sentenced. The CRA says... Read More |
Fake news! Some investment research is a sham by Mack Chen The SEC has warned investors that information purporting to be unbiased investment research actually may be undisclosed paid stock promotion. In an investor alert, the Securities and Exchange Commission advised investors to use many sources and never to... Read More |
38% OF INSOLVENT MILLENNIALS USE PAYDAY LOANS by Mack Chen Millennials (aged 18 to 29) make up 14% of Ontario insolvencies, up from 12% in 2015, finds the report. As expected, one third (31%) of insolvent millennials have student debt. But, more concerning, 38% have payday loans. That compares to 25% for insolvent... Read More |
Pimco has agreed to pay US$81 million to settle the lawsuit from its founder Bill Gross by Mack Chen Pimco has agreed to pay US$81 million to settle the lawsuit from its founder Bill Gross, reports the Financial Times . Those familiar with the deal say Gross claimed he was illegally ousted from the firm in 2014, says the report.&nbs... Read More |
Federal employee pensions should move to shared-risk model by Mack Chen According to a 2016 report from the C.D. Howe Institute, the undisclosed market value of these plans’ obligations were $269 billion at the end of the 2015 fiscal year, or $118 billion more than reported. As it stands, these defined benefit plans p... Read More |
Adviser gets seven years for Ponzi scheme by Mack Chen Patrick Churchville, the owner and president of ClearPath Wealth Management in Providence, R.I., has been sentenced to seven years in federal prison for a Ponzi scheme that defrauded investors of $21 million. According to the SEC... Read More |
INVESTOR RIGHTS FIRM FILES CLASS ACTION AGAINST TD IN WAKE OF CBC REPORTS by Mack Chen Hundreds of current and former TD Bank Group employees wrote to Go Public describing a pressure cooker environment they say is “poisoned,” “stress inducing,” “insane” and has “zero focus on ethics.” Some e... Read More |
An investor won a $357,000 arbitration award against Wells Fargo Advisors for unsuitable energy and housing investments. by Mack Chen The investor, Anthony J. Pryor, claimed fraud, negligent misrepresentation, breach of fiduciary duty and negligent supervision, among other causes of action. The arbitration award did not provide any further detail about the allegations. T... Read More |
SCOTIABANK CEO EARNED 8% MORE IN 2016 by Mack Chen Brian Porter, president and CEO of Scotiabank, received a pay bump in 2016. His total compensation was $11.8 million, compared to $10.9 million in 2015. His direct compensation for the year—which doesn’t include his pension and other compens... Read More |
MANULIFE WAS THE BANK FINED $1.15M BY FINTRAC LAST YEAR by Mack Chen Manulife Financial Corp. confirmed Monday its banking unit was penalized last year after Canada’s money-laundering watchdog concluded it failed to report a suspicious transaction and various money transfers. Last year, Fintrac fined the bank $1.15... Read More |
15 OFFENDERS JAILED IN 2016 by Mack Chen In 2016, more than 23 years of jail time were handed down to 15 offenders for Securities Act violations. That compares to about 10 years of jail time handed down last year. Further, 13 people were found guilty under the Criminal Code. Nine people were s... Read More |
SCOTIA CAPITAL FINED FOR FAILURE TO SUPERVISE by Mack Chen IIROC says Scotia Capital admitted that it failed to properly supervise the conduct of Krishna Sammy, a portfolio manager at DWM Securities, to ensure compliance with the dealer member rules. Pursuant to the settlement agreement, Scotia Capital agreed t... Read More |
31 Toronto hospital staff fired for benefits claim ‘irregularities’ by Mack Chen Thirty-one employees at St. Michael’s Hospital in Toronto have been fired in relation to “irregularities in some employee health benefit claims,” spokesperson Leslie Shepherd confirmed in an email to Benefits Canada . The irreg... Read More |
SEC, Morgan Stanley settle charges related to inverse ETFs by Mack Chen Morgan Stanley has agreed to pay an $8 million penalty and admit wrongdoing to settle charges related to single inverse ETF investments it recommended to advisory clients. The SEC's order said that Morgan Stanley did not adequately implement its pol... Read More |
York Region police officer fired for benefits fraud by Mack Chen An officer from the York Regional Police Service was fired yesterday for benefits fraud, two years after pleading guilty and being suspended with pay. In the original hearing on Dec. 10, 2015, York Regional Police superintendent Graeme Turl ruled t... Read More |
Reduced pension benefits among possibilities facing Manitoba government workers by Mack Chen Manitoba’s Progressive Conservative government has raised the possibility of unpaid days off and reduced pension benefits for public-sector workers as part of its drive to reduce a billion-dollar deficit. The Tories have already floated the idea o... Read More |
21% OF CANADIANS USE RRSP FUNDS FOR DAILY EXPENSES by Mack Chen Only 46% of Canadians plan to contribute to RRSPs this year, reveals part one of a BMO survey, but that figure paints only half of the grim picture. Part two of the survey reveals that 38% of Canadians have withdrawn RRSP funds this year, before ag... Read More |
Economic council suggests backtrack on retirement age by Mack Chen The advisory council believes allowing CPP and old-age security deferrals beyond age 70 would encourage willing older workers to remain in the workforce for longer. In its report, it suggested the government could also explore ways to make deferrals... Read More |
Nearly 60% of Americans don't have wills by Mack Chen Only 36% of U.S. adults with children under age 18 have a will or living trust, and just 42% of all U.S. adults have such documents, a new study from Caring.com finds. In terms of wills, the survey found that 58% of Republicans have one, v... Read More |
SEC hits Citigroup advisory unit with $18.3 million penalty for overbilling clients by Mack Chen Citigroup Global Markets Inc. agreed to pay $18.3 million to settle Securities and Exchange Commission charges that it overbilled investment advisory clients, the agency announced on Thursday. From 2000 until 2015, the Citigroup unit overcharged approxi... Read More |
Without a will, Prince lost control of his music by Mack Chen Now, because he failed to leave a will, his wishes are taking a backseat. His estate, represented by music industry veteran Charles A. Koppelman and entertainment lawyer L. Londell McMillan, is racing under a court mandate to get the most from a catalog of... Read More |
SEC hits Morgan Stanley with $13 million fine by Mack Chen The Securities and Exchange Commission said on Friday that Morgan Stanley agreed to pay a $13 million penalty to settle charges that it overbilled investment advisory clients. The firm also violated the custody rule pertaining to annual surprise examinatio... Read More |
SEC charges two brokers with fraud in excessive-trading scheme by Mack Chen The SEC alleged brokers Gregory T. Dean and Donald J. Fowler used a “high-cost trading strategy consisting of the excessive buying and selling of stocks” that led to “enormous losses” for clients but benefited them through “su... Read More |
Social Security program to run out of money in calendar year 2029 by Mack Chen In fiscal year 2016, the $905 billion spent on Social Security benefits accounted for nearly one-quarter of federal spending, with 84% in the OASI program. Without changes to scheduled benefit payments or laws governing taxes and spending, Social Security ... Read More |
Former N.Y. State Common Retirement Fund fixed-income director arrested by Mack Chen Both complaints alleged a long-running conspiracy between Mr. Kang and the two broker-dealers, who paid for gifts in return for his recommending to the $184.5 billion New York pension fund that their firms be hired to manage fixed-income investments. ... Read More |
Finra bars former JP Morgan, RBC brokers by Mack Chen Finra on Friday barred two former brokers for violating firm policies, one from RBC Capital Markets and one from J.P. Morgan Securities. John Simpson, who has been registered with Finra since 1980 and worked at RBC from March 2009 to February 2016, was ... Read More |
Former LPL Financial rep gets more than five years for Ponzi scheme by Mack Chen From May 2012 to December 2014, Mr. Fackrell ran his Ponzi scheme, misusing funds from at least 20 clients. He was a registered broker with LPL during that time. Mr. Fackrell “used his position of trust to solicit victim investors and steer them a... Read More |
Financial adviser pleads guilty to theft of more than $1.6 million by Mack Chen A former financial adviser has pleaded guilty to stealing more than $1.6 million from the beneficiaries of three trusts that he managed, according to a statement from the New York City's district attorney's office. From approximately May 2007 to... Read More |
EU FINES 3 BANKS US$520M OVER RATE MARKET RIGGING by Mack Chen EU regulators on Wednesday fined banks JPMorgan Chase, HSBC and Credit Agricole a combined US$520 million for colluding to manipulate the price of financial products linked to interest rates. JPMorgan Chase was fined 337 million euros, France&rsquo... Read More |
It is true - Dallas mayor files suit to stop pension withdrawals by Mack Chen Dallas Mayor Mike Rawlings filed a lawsuit Monday seeking to stop the Dallas police and fire pension system from allowing retirees to pull their deferred retirement funds from the ailing system. “Because [deferred retirement] participants do ... Read More |
RBS SETTLES WITH SOME INVESTORS OVER CONTROVERSIAL SHARE SALE by Mack Chen The bank, which was bailed out by the government shortly after the share sale, says it will pay as much as 800 million pounds ($1.02 billion) to settle the claims of all five groups. Royal Bank of Scotland says it has reached a settlement with three of ... Read More |
Merrill Lynch to pay $7.03 million in Finra case for inadequacies in leveraging customer brokerage accounts by Mack Chen Merrill Lynch will pay $7.03 million in fines and restitution to settle charges brought by Finra for inadequacies in overseeing customers' use of leverage in the wirehouse's brokerage accounts. In addition to a $6.25 million fine, Merrill... Read More |
LPL sued by Galvin over top producer's alleged variable annuity abuses by Mack Chen The broker, Roger Zullo, “for years has defrauded his clients, lied to his supervisors, and fabricated client financial suitability profiles, in order to enrich himself and LPL by selling scores of identical, illiquid and high-commission variable ann... Read More |
Regulator said Pimco misled investors about the performance of its actively managed Total Return ETF by Mack Chen The Securities and Exchange Commission today announced that Pimco will pay nearly $20 million to settle charges that it misled investors about the performance of Pimco's Total Return ETF (BOND), one its first actively managed exchange-traded funds. ... Read More |
STRESS TESTS: Barclays, RBS, and Standard Chartered found to have capital inadequacies' by Mack Chen LONDON – Royal Bank of Scotland, Barclays, and Standard Chartered came up lacking in the Bank of England's stress tests. The three banks had to submit plans to the regulator detailing how they would raise capital and boost their resilie... Read More |
Ontario spent $800K on ads after cancelling ORPP by Mack Chen The Ontario government spent $793,925 on new advertising out of the budget for the Ontario Retirement Pension Plan after cancelling the program, according to documents obtained by the Canadian Taxpayers Federation through a freedom of information request. ... Read More |
Manitoba to introduce pooled retirement pension plans by Mack Chen The government of Manitoba has announced it will introduce pooled retirement pension plans as a new option to help the province’s employees save for retirement. Manitoba will likely make PRPPs a voluntary option for employers as Hamilton notes the... Read More |
Minnesota adviser gets six-year prison sentence for Ponzi scheme by Mack Chen “Lindemann abused his position of trust as a financial adviser to steal from his clients, including the elderly ,” Mike Rothman, Minnesota's commerce commissioner, said. “Lindemann defrauded his victims by promising to put the... Read More |
Get off to a good savings start with this budget calculator by Mack Chen This budget calculator by the Financial Consumer Agency of Canada will let you dig deep into where your money goes. Before using it, make sure you have a paycheque and recent credit card or chequing account statements handy. If you have utility bills or in... Read More |
SUN LIFE ADDS COVERAGE FOR PEOPLE WITH HIV, CUTS MANDATORY MEDICAL EXAMS by Mack Chen Sun Life will now be offering coverage of more than $3 million for people living with HIV. The insurer will also eliminate routine underwriting requirements such as medical exams, ECGs, stress ECGs, oral fluid samples and urine HIV tests ... Read More |
IIROC REP FINED, SUSPENDED OVER DUE DILIGENCE FAILURES by Mack Chen IIROC says Dahl admitted he made unsuitable recommendations for two clients, failed to update the account information of two clients after their circumstances materially changed, and placed discretionary trades on behalf of two clients. Dahl also agreed... Read More |
JPMorgan to pay $264 million to resolve China hiring probe by Mack Chen JPMorgan Chase & Co ( JPM.N ) has agreed to pay U.S. authorities $264 million to resolve allegations it hired the relatives of Chinese officials in order to win banking deals, the U.S. Securities and Exchange Commission and the Justice Department sai... Read More |
MFDA BANS ADVISOR FOR SECRET SIDE BUSINESS by Mack Chen The regulator alleged that from 2009 to 2013, Davis borrowed $80,000 from a client, “thereby giving rise to a conflict of potential conflict of interest.” He used the money to open a tax preparation business, Davis and Associates, the MFDA foun... Read More |
Edward Jones hit with second lawsuit over excessive 401(k) fees by Mack Chen The lawsuit, Schultz et al v. Edward D. Jones & Co., L.P. et al , alleges the broker-dealer and several employees overseeing the retirement plan breached their fiduciary duties by selecting high-cost mutual funds when identical, lower-cost ones... Read More |
Finra bans LPL broker for depositing client funds into own bank account by Mack Chen The Financial Industry Regulatory Authority Inc. has barred an LPL Financial broker for depositing client funds into his personal bank account. The broker, Dominic Thomas DeBruin, was investigated for placing client funds into a bank accou... Read More |
401(k) record keeper sued over 'pay to play' scheme by Mack Chen Xerox HR Solutions, one of the largest record keepers for defined contribution plans, has been sued over an alleged pay-to-play scheme with managed-account provider Financial Engines Inc Plaintiffs, a trio of participants in the Ford plans, allege Xerox... Read More |
HOW AN ADVISOR ALLEGEDLY DEFRAUDED EMPIRE LIFE FOR 15 YEARS by Mack Chen After two civil trials, one in Quebec (filed in 2002, concluded in 2011) and one in Ontario (filed in 2002, concluded in 2012), Thibault was ordered to pay Empire Life $35.8 million for misappropriation of funds. Yet Thibault was able to continue his ca... Read More |
IIROC FINES EDWARD JONES FOR INSUFFICIENT ACCOUNT SUPERVISION by Mack Chen Edward Jones admitted to insufficient retail account supervision. Pursuant to the settlement agreement, Edward Jones agreed to the following penalty: A fine of $250,000. Edward Jones also agreed to pay costs in the amount of $50,000 >>... Read More |
LIPPER AWARDS HONOUR BEST CANADIAN FUNDS by Mack Chen This year’s top Canadian fund family winners are: Phillip, Hager & North, for bonds and overall Mawer Investment Management, for equity and mixed assets BMO, for bond ETFs Vanguard Investments, for equity ETFs A full list of Ca... Read More |
Manitoba launches consultation on Canada Pension Plan by Mack Chen Manitoba is launching public consultations to hear ideas and suggestions on enhancements to the Canada Pension Plan. “We believe Canadians will receive the most benefit from the Canada Pension Plan if the provinces and the federal government work ... Read More |
What does a Trump presidency mean for U.S. employers? by Mack Chen Health insurance During the election campaign, Trump promised he’d repeal the Affordable Care Act, also known as Obamacare, within the first 100 days. Paid leave Paid leave regulations have also been a hot topic on the campaign trail. ... Read More |
Winning strategy in election year: Guns, booze, tobacco and gambling by Mack Chen When Americans are worried, they reach for guns, tobacco, slot machines and booze — and that's one reason USA Mutuals Vice fund (VICEX) has done so well this year. Unlike funds that seek to make the world safer and healthier, USA Mutual... Read More |
COUPLE MARRIED FOR 70 YEARS SEPARATED IN LONG-TERM CARE FACILITIES by Mack Chen 92-year-old Jessie and her 93-year-old husband Clarence, who had been living together at a retirement home in Grimsby then were sent to different homes, one in Grimsby and one in nearby St. Catharines. >>> Read More |
WELLS FARGO UNDER INVESTIGATION BY THE SEC by Mack Chen The San Francisco bank has been under fire since it was discovered that employees, to meet extremely lofty sales goals, opened as many as 2 million bank and credit card accounts without customer authorization. The company has since fired more than 5,000 em... Read More |
Finra fines eight broker-dealers $6.2 million by Mack Chen Finra imposed sanctions against Voya Financial Advisors, five broker-dealer subsidiaries of Cetera Financial Group, Kestra Investment Services and FTB Advisors Inc., according to its action notice. The firms entered into the settlement without admitting no... Read More |
SUITABILITY VIOLATIONS ARE MAIN DRIVER OF INVESTOR COMPLAINTS by Mack Chen IIROC reports that, of the 838 complaints it received from clients of IIROC-regulated firms over the past two fiscal years (April 1, 2014 to March 31, 2016), unsuitable investments topped the list with 222 complaints. Other complaints roundi... Read More |
Adviser allegedly took $529,000 from investors in Ponzi scheme by Mack Chen Stephen S. Eubanks has taken at least $529,000 from friends, neighbors and their families over several years, according to a complaint notice from the office of the secretary Tuesday. Investors are seeking to recover their money. The complaint notice sa... Read More |
CIBC OVERCHARGED INVESTMENT CLIENTS FOR 14 YEARS by Mack Chen CIBC has reached an agreement with the OSC to compensate customers for collecting excess fees for certain mutual funds and investment services over 14 years. According to an OSC statement, short-comings in systems and controls at CIBC Worl... Read More |
IIROC SAYS RBC ADVISOR HID BROKERAGE ACCOUNTS AT OTHER FIRMS by Mack Chen 1. Between February 2005 and June 2014, Papp maintained brokerage accounts outside of his Dealer Member, without the knowledge or consent of his Dealer Member 2. Between February 2005 and June 2014, Papp made untrue and misleading statements t... Read More |
Pension solvency continues to slip despite increase in returns by Mack Chen While fund managers outperformed the report’s third quarter benchmark of between 4.1 and 4.3 per cent for diversified portfolios, the solvency ratio of the average pension plan fell by about 2.2 per cent, according to the report. The market produc... Read More |
MFDA FINES EDMONTON ADVISOR FOR FALSIFYING FORMS by Mack Chen The MFDA has settled with Edmonton advisor Nathan Charles Garries, who admitted to falsifying or using pre-signed account forms for more than a dozen clients, among other issues. >>> Read More |
ASSET ALLOCATION VS. SECURITY SELECTION — WHICH WINS? by Mack Chen The ability to pick the best securities in a specific market is much less important than your choice of which markets to invest in. Consider the example of emerging market equities, which underperformed U.S. equities by more than 55% over the five years... Read More |
Canada’s retirement system receives B grade from global pension index by Mack Chen Canada’s retirement system maintained its score of a B on the 2016 Melbourne Mercer Global Pension Index, indicating a sound structure, many good features and some areas of improvement. To improve, Canada could develop a product for employees... Read More |
202,400 Canadians will be diagnosed with cancer this year by Mack Chen This year, 202,400 Canadians will be diagnosed with cancer, a study from the Canadian Cancer Society predicts. Half (50.4 per cent) of the diagnoses will be lung, bronchus, breast, colorectal and prostate cancers, and men (45 per cent) are sli... Read More |
CRA CRACKS DOWN ON TAX EVASIO by Mack Chen Gail Shea, minister of National Revenue, says that Ottawa will use the courts to get the Canadian Broadcasting Corporation to hand over leaked data naming people who have allegedly used offshore tax havens. “As announced in Economic Action Plan 20... Read More |
The company had been operating for years like a Ponzi scheme by Mack Chen The Nasdaq stock market has delisted UDF IV shares - real estate investment trust United Development Funding IV . UDF IV, with $684 million in assets according to SEC filings, is a mortgage and development REIT. UDF branded REITs and private deals ... Read More |
Adviser suspended for five years for overcharging clients by Mack Chen Jens Pinkernell, the principal adviser and founder of his firm, J. Pinkernell Global Wealth, in Gunter, Texas., was ordered to repay the two clients $46,915. His company's investment adviser registration is also suspended for five years. Accord... Read More |
Former UBS broker barred for inflating customer account value by Mack Chen A former broker with UBS Group AG's wealth management unit was barred from the brokerage industry after providing a customer with false weekly account statements over a period of six years, according to the Financial Industry Regulatory Authority Inc. ... Read More |
ONLY 1 IN 4 CANADIAN EQUITY FUNDS OUTPERFORMED by Mack Chen Only one-quarter of Canadian equity funds (26.4%) outperformed the S&P/TSX Composite Index over the one-year period. Only 38% of dividend and income funds outperformed the S&P/TSX Canadian Dividend Aristocrats Index over the same period. Only... Read More |
SEC sets record in enforcement actions against investment advisers by Mack Chen The SEC filed a record number of total enforcement actions across their purview — 868 — and a record number of standalone cases — 548. It collected more than $4 billion in disgorgement and penalties. >>> Read More |
Should I work past 70 while collecting CPP and OAS? by Mack Chen If you plan in any case to work until age 67 or 70, then that’s probably when you should start collecting your CPP. You can use the tool at cppoptimizer.com to make an exact calculation, one that factors in some variables you’ve n... Read More |
Ontario Teachers’ to partially restore inflation protection for newer retirees by Mack Chen The Ontario Teachers’ Pension Plan will use part of its $13.2-billion surplus to restore some inflation protection for teachers who retired after 2009, according to the Ontario Teachers’ Federation and the provincial government. The rem... Read More |
Finra fines Ameriprise $850,000 for failing to supervise broker preying on his own family by Mack Chen The registered representative, who worked as a sales assistant and office manager, took more than $370,000 from five Ameriprise customers from October 2011 to September 2013, according to a Finra statement Wednesday . The customers included his mot... Read More |
REPS PERMANENTLY BANNED, YET THEY STILL HANDLE CLIENT MONEY by Mack Chen If you found out your doctor had been permanently banned from practicing medicine, would you want her to be your pharmacist? Likely not. But an Advisor.ca investigation has identified nine cases between 2013 and 2015 where reps were perman... Read More |
56% of Canadians over 50 don’t have a retirement savings plan by Mack Chen More than half (56 per cent) of Canadian pre-retirees aged 50 or older don’t have a retirement savings plan, according to research commissioned by the Ontario Securities Commission. 36 per cent are doing so through an employer-provided pension pla... Read More |
How you pay for mutual funds by Mack Chen That payment comes in two parts: Sales charge Management expense ratio The sales charge is a one-time fee. It’s a percentage of your investment, usually no higher than 7%, that you either pay up-front (called a front-end sales charge) or... Read More |
Pension solvency funding a growing challenge as B.C. deficits mount by Mack Chen British Columbia’s defined benefit pension plans continue to face funding challenges as solvency deficits mount. In its report, the regulator reviewed 196 defined benefit plans in the province and found that, as of Dec. 31, 2015, the... Read More |
ETFs are shuttering at a record pace by Mack Chen ETFs are shutting down at a record clip. Last month, 41 ETFs shut down, and 11 more are already slated to close in September. That compares to 40 closings through the first seven months of the year. That's up from 1,770 ETFs and $2 trillion in ... Read More |
WOMAN WINS PONZI SCHEME CASE AGAINST METLIFE by Mack Chen A California woman who lost her life savings in a real estate investment scam offered by an insurance agent was awarded more than $15 million . Ramirez was the first of 98 people who have sued after being bilked in a $200 million real estate fund scheme... Read More |
CANADIAN ECONOMY SHRINKS IN WORST SHOWING SINCE FINANCIAL CRISIS by Mack Chen The federal agency said real gross domestic product fell at an annualized rate of 1.6% in the three-month period, due in large part to the wildfires that destroyed parts of Fort McMurray, Alta. That’s the biggest quarterly decline since the second qu... Read More |
CMHC reports rise in troubled mortgages in Alberta, Saskatchewan by Mack Chen Canada’s mortgage insurance agency is reporting a 52% increase in the number of insured home loans in arrears in Alberta, as low oil prices weaken the provincial economy. Canada Mortgage and Housing Corporation says in its second-quarter report th... Read More |
N.W.T company seeking pension relief amid insolvency proceedings by Mack Chen Public Service Alliance of Canada and the Union of Canadian Transportation employees have retained a law firm to represent the pension interests of its employee members and retirees as insolvency proceedings move forward. In August 2011, all participant... Read More |
Retirees lost $140,000 - concentrated them in energy, gold by Mack Chen The four investors, who all retired from the same bus company in California, lost a total of about $140,000 as result of their investments being “unduly concentrated” in gold and energy stocks, according to the complaint. All the elderly retire... Read More |
SEC fines advisory firms $2.2 million for spreading false claims by Mack Chen The SEC found the firms “accepted and negligently relied” on F-Squared's claims that its "AlphaSector strategy" for investing in ETFs had outperformed the S&P 500 Index for several years, according to a statement by the regul... Read More |
With bankruptcy case concluded, investors stand to recover $400 million - another Ponzi case is over by Mack Chen The seven-year unwinding of the billion-dollar Medical Capital Holdings Ponzi scheme is over, with swindled investors receiving more than $400 million. According to court documents, close to 9,000 Medical Capital investors were owed approximately $1.08 ... Read More |
WHAT ARE THE FEDERAL TAX OBLIGATIONS WHEN BUYING, SELLING PROPERTY? by Mack Chen Myth – CRA has a role to play in reducing housing costs. Fact – CRA does not have any role to play concerning the affordability of real estate. Myth – Real estate flipping is illegal. Fact &n... Read More |
At BlackRock, even a 40% gain can't save ETFs from the scrap heap by Mack Chen BlackRock Inc., the world's largest asset manager, plans to shutter 10 exchange-traded funds this month despite all posting gains this year. One soon-to-close fund, the iShares MSCI Emerging Markets Latin America ETF, is up 38 percent. So why are th... Read More |
Your top five tax questions answered by Mack Chen 1. Should I contribute to my RRSP or TFSA? “One key ‘rule of thumb’ to consider is your marginal tax rate today and your expected marginal tax rate in retirement, including the possible clawback of government benefits. Generally, if yo... Read More |
Android and iOS now account for 99.1% of the worldwide smartphone market by Mack Chen Android and iOS now account for 99.1% of the worldwide smartphone market. (With Android well out in front.) Their closest competitors, Windows 10 Mobile and BlackBerry OS, make up 0.6% and 0.1%, respectively. Both of those figures are down sl... Read More |
AVERAGE PRICE FOR GTA LOW-RISE HOME EXCEEDS $900,000 by Mack Chen The average price of a new low-rise home in the GTA has surpassed $900,000 for the first time, says the Building Industry and Land Development Association (BILD). The average price of new detached and semi-detached houses and townhomes was&nbs... Read More |
A U.S. mutual fund firm is suing the embattled Quebec drugmaker by Mack Chen A U.S. mutual fund firm that used to be one of Valeant’s largest shareholders is suing the embattled Quebec drugmaker for allegedly pursuing “a fraudulent scheme” that ultimately cost investors billions of dollars. “This case ari... Read More |
5 things to do before buying your first home by Mack Chen 1) Save up for a down payment: It will help to cut down mortgage payments going forward. You should save up at least 5% of the price of the home for a down payment, but 20% is better, as you won’t have to buy mortgage default insurance. 2) ... Read More |
Canada’s best places to retire by Mack Chen Your home town might not be the best place to get the most out of your retirement. The top 10 places to retire are: 10. Nelson, B.C. 9. Kingston, Ont. 8. Collingwood, Ont. 7. Port Credit, Ont. 6. Joliette, Que. 5. Victo... Read More |
LENDERS MAY HAVE TO SHARE MORTGAGE RISK by Mack Chen The Department of Finance may soon require banks to share risk with mortgage insurers. “In a briefing note to Finance Minister Bill Morneau and released under Access to Information, department officials say they are studying an option to introduce... Read More |
IIROC FINES REP $15,000 OVER USE OF LEVERAGED ETFS by Mack Chen Between May 1, 2008 and November 30, 2011, Cloutier failed to exercise due diligence to ensure that his investment recommendations in leveraged ETFs constituted a suitable investment for one of his clie. The hearing panel imposed the following penalties... Read More |
BMO TERMINATING SEVERAL FUNDS by Mack Chen The following NBA and NBF series funds will be terminated, effective on or about October 21, 2016: BMO Bond Fund (both series) BMO Asset Allocation Fund (only NBA) BMO International Value Fund (both series) BMO U.S. Equity Fund (both series) ... Read More |
SEC charges San Francisco adviser with stealing money from client by Mack Chen “They claimed assets under management in the millions when in fact they did not manage any client assets at all,” the agency said. “They fabricated a hypothetical portfolio of investments earning 20% to 66% annual returns and passed it of... Read More |
Former Eagle player defrauds football coaches, others out of $6 million by Mack Chen Former Philadelphia Eagle Merrill Robertson Jr. defrauded his former coaches and other investors out of about $6 million, the Securities and Exchange Commission alleged in a complaint filed on Wednesday. Mr. Robertson, Sherman Vaughn Jr., and the compan... Read More |
Americans have $12.29 trillion of debt — here's what it looks like by Mack Chen Americans are still adding debt. Household debt — which includes things as varied as mortgages and credit cards — increased to $12.29 trillion in the second quarter of 2016, an increase of $35 billion, or 0.3%, according to the... Read More |
Yale, MIT and NYU targeted in excessive-fee lawsuits concerning retirement plans by Mack Chen A trio of renowned universities — Yale University, New York University and the Massachusetts Institute of Technology — were sued on Tuesday over allegations that their defined-contribution plans charged employees excessive plan fees, leading th... Read More |
State Street Global Advisers to shutter 12 unloved ETFs by Mack Chen Most of the ETFs being liquidated are international with an out-of-favor BRIC (Brazil, Russia, India and China) flavor. For example, the SPDR S&P BRIC 40 ETF (BIK), clearly a play on the BRIC fad , accumulated about $74 million in assets, but a... Read More |
Cornwall retirees out of luck in battle over benefits by Mack Chen Sensient Flavors Canada Inc. had notified the retirees that their group benefits would end on April 20, 2016, despite language in the collective agreement that stated that, “upon retirement, all present employees, surviving spouses and dependants, sh... Read More |
WHAT IS CANADIANS’ NO. 1 FINANCIAL PRIORITY? by Mack Chen The top financial priority for 30% of Canadians is to reduce or eliminate debt, says a study by BMO Wealth Management. The BMO report released Tuesday found slashing debt was also the most important priority for people aged 35-54. Fo... Read More |
Finra charges broker with fraud for churning blind widow's account by Mack Chen The “deceptive and fraudulent scheme” generated $243,000 in commissions for the broker, Hank Mark Werner, and caused the 77-year-old customer $184,000 in net losses over a three-year period, Finra alleged. Mr. Werner isn't currently regi... Read More |
Severance payments criticized as Ontario puts ORPP spending at $70M by Mack Chen The Ontario government spent up to $70 million on developing the now-abandoned Ontario Retirement Pension Plan, according to new figures released by the province. The costs include $25 million spent by the government itself between 2013 and 2016 in seve... Read More |
WHO WILL BENEFIT FROM CPP CHANGES? by Mack Chen The tentative changes will see the amount Canadians receive from CPP increase from one quarter of their eligible earnings to one-third. The maximum amount of income covered by CPP will also increase by 14% to roughly $82,700 by 2025. That means workers ... Read More |
If you bought stocks only at the 3 latest market tops, you'd still be up 26% by Mack Chen If you bought stocks only right before the 2000 and 2008 market tops — and then bought stocks again only when they got back to May 2015 highs — you'd still be making money . This chart, which comes to use from Raymo... Read More |
10 pieces of personal finance wisdom by Mack Chen Create spending priorities : Tax your fast-food : Don’t leave the finances to one partner : Forget the fancy wine : Don’t buy into retail therapy : Cut the coffee : Be open ... Read More |
Decades after ban from industry, Alpharetta man again accused of fraud by Mack Chen An 85-year-old Alpharetta man who was barred from the investment industry 45 years ago for fraud was back at it again with the help of his 55-year-old son, according to federal investigators. The U.S. Securities and Exchange Commission said Thomas D. Co... Read More |
OSC targeted 90 for misconduct last year by Mack Chen The OSC took action against 90 firms or individuals during the fiscal year ending March 31, the securities regulator says in a year-end report. Of that 90, seven had their registrations suspended and 11 were referred to enforcement, the OSC says in the... Read More |
HSBC CURRENCY HEAD ARRESTED FOR FRONTRUNNING by Mack Chen U.S. authorities have arrested an HSBC executive for his alleged role in a US$3.5-billion currency frontrunning scheme, Bloomberg reports. Mark Johnson, HSBC’s head of foreign exchange, was taken into custody at New York’s Ke... Read More |
HORIZONS LAUNCHES ETF by Mack Chen Horizons ETFs Management (Canada) Inc. and its affiliate, AlphaPro Management Inc. have launched Horizons Global Currency Opportunities ETF, which provides investors with low-cost, actively managed exposure to worldwide currency markets. Units of t... Read More |
Prudential fined $950,000 for failures in elderly customer's variable annuity account by Mack Chen Finra has fined Prudential Annuities Distributors Inc., a unit of Prudential Financial Inc., $950,000 for supervisory lapses in an elderly customer's variable annuity account in which a rogue broker stole more than $1 million. The Fina... Read More |
NATIONAL HOMES SALES FALL AGAIN by Mack Chen National home sales fell 0.9% from May to June. Actual (not seasonally adjusted) activity came in 5.2% above June 2015. The number of newly listed homes rose 2.2% from May to June. The MLS® Home Price Index (HPI) rose 13.6% year-over-ye... Read More |
Canada’s Top 10 best growth stocks for 2015 by Mack Chen Company Ticker 1-year revenue change (%) PEG Ratio 5-year EPS growth (%) 5-year revenue growth (%) Agrium Inc. AGU 2 0.8 2.6 68 Alimentation Couche-Tard Inc. ATD.B 6.8 1.4 38.3 ... Read More |
CPP expansion will do little to boost rate of return by Mack Chen The expanded Canadian Pension Plan will bring only a slightly higher rate of return for retirees — 2.5 per cent in the expanded plan compared to 2.1 per cent in the current plan, according to a new report by the Fraser Institute. In May, th... Read More |
IBM ordered to pay $23M to staff in connection to pension change by Mack Chen IBM has been ordered to pay more than $23 million to 451 active and retired employees of its plant in Bromont, Que., a decade after its decision to unilaterally amend a clause in its defined benefit pension plan. The case is a warning to employers about... Read More |
Almost half of working-age Canadians not saving for retirement: report by Mack Chen Nearly half (48 per cent) of working-age Canadians are not saving for retirement,. The report, which surveyed more than 18,000 working-age individuals and retirees across 17 countries including 1,037 in Canada, found that this figure is higher in Argent... Read More |
Market volatility raises the bar for retirement income savers by Mack Chen A 55-year-old would need $17.64 saved today to generate each dollar of annual retirement income starting at age 65, according to the CoRI tool. Based on that estimate, a 55-year-old with a $500,000 nest egg could expect $28,435 in annual retirement income ... Read More |
Being early is the same thing as being wrong by Mack Chen This year through July 7, financial-sector funds are down an average of 6.72%. The only sector doing worse is health-sector funds, down 7.65% over the same period. The S&P 500 Index is up 3.86% so far this year. While some see the v... Read More |
Dawn J. Bennett barred from industry; ordered to pay $4 million in fines, disgorgement by Mack Chen From at least 2009 through 2011, the ruling states, Ms. Bennett and Bennett Group claimed to be managing between $1.1 billion and $2 billion, when in reality the firm never managed more than $407 million during that time period. “Bennett is not fi... Read More |
What are U.S. pension plan sponsors’ top concerns? by Mack Chen Investment volatility (52 per cent), retirement benefit costs (49 per cent) and regulatory compliance (47 per cent) are U.S. employers’ top three concerns now and for the next two years, “The fact that one in three retirement plan... Read More |
Canada Post labour dispute: A look at the company’s existing DC plan for some workers by Mack Chen The proposal to close the defined benefit pension to new employees and switch to a defined contribution one is a key issue in the negotiations leading up to this week’s lockout notice. If the company is successful in the negotiations, the defined ben... Read More |
Andrew Caspersen pleads guilty to scamming friends, family and a charity out of millions of dollars by Mack Chen Andrew Caspersen admitted to scamming friends, family and a charitable foundation out of millions of dollars, telling a judge it was all due to a gambling habit that spiraled out of control. Mr. Caspersen's victims, including the foundation of billi... Read More |
Treasury bonds beat stocks the past 10 years. You heard it right by Mack Chen Long-term Treasury securities have outperformed the Standard & Poor's 500 stock index for the past 10 years. The SPDR S&P 500 ETF (SPY) has gained an average 7.27% over the past decade, according to Morningstar Inc. But the iShare... Read More |
Investment adviser to plead guilty to running a $21 million Ponzi scheme by Mack Chen A Rhode Island investment adviser has agreed to plead guilty to criminal charges for orchestrating a $21 million Ponzi scheme, according to a statement from the U.S. Attorney's Office. Aside from that scheme, Patrick E. Churchville, 47, also used $2... Read More |
American Century employees sue for excessive 401(k) fees by Mack Chen Employees of American Century Companies, Inc., parent of asset management firm American Century Investments, have sued over the firm's 401(k) plan, the latest in a string of lawsuits targeting financial services companies for their own retirement plans... Read More |
House passes bill to protect advisers reporting elder financial abuse by Mack Chen The House of Representatives Tuesday night unanimously approved legislation that would protect financial advisers from liability when they try to stop the financial exploitation of seniors. The measure, the Senior Safe Act, passed the House, passed the ... Read More |
Goldman Sachs allegedly 'misled' its Libyan clients into placing a $500 million bet by Mack Chen A former Goldman Sachs salesman used a "misleading" presentation to encourage Libya's sovereign wealth fund to sign a deal exposing them to $500 million of Citigroup stock right before the 2008 financial crisis, a London court heard... Read More |
SEC fines WFG Advisors $100,000 for overcharging clients in alternative investments by Mack Chen WFG Advisors, the registered investment advisory arm of Williams Finance Group , will pay a $100,000 penalty for overcharging clients, according to the Securities and Exchange Commission. From January 2011 through August 2013 the firm overcharged clie... Read More |
Finra alleges former broker put clients in risky ETFs to hedge against financial doom by Mack Chen From at least March 2011 through July 2015, Richard William Lunn Martin recommended that his customers hold non-traditional ETFs in their accounts because of his prediction that the monetary and financial system was going to collapse, according to a Finra&... Read More |
Fidelity takes on Vanguard by cutting prices on index funds, ETFs by Mack Chen Fidelity Investments announced Tuesday that it will lower expense ratios on 27 index funds and ETFs on July 1, as the competition for investor assets drives costs down further. >>> Read More |
The wealth gap between American blacks and whites is actually greater today than in the 1980s by Mack Chen By 2013, the median net worth of white households ($144,200) was about 13 times that of black households ($11,200). Back in 1983, the median net worth of white households ($98,700) was about 8 times that of black households ($12,200). >>> ... Read More |
Someone owns you money - Pension association asks CRA for help locating pensioners by Mack Chen The Association of Canadian Pension Management has submitted a letter to the Canada Revenue Agency asking for help to locate missing pension plan members. >>> Read More |
Feds confirm $250M price tag for CPP deal as premium details released by Mack Chen Expanding the working income tax benefit to offset increased Canada Pension Plan premiums for low-income workers will cost the federal government $250 million per year, Finance Canada estimates. Besides the CPP premium and benefit changes, the federal g... Read More |
Merrill Lynch hit with multiple fines by SEC, Finra by Mack Chen The wirehouse, owned by Bank of America, admitted to wrongdoing in a record $415 million settlement with the Securities and Exchange Commission, which charged it misused customer cash and failed to safeguard their securities. Separately, it was fined an ad... Read More |
GL Capital Partners' former CEO Daniel Thibeault sentenced to nine years in prison by Mack Chen Daniel Thibeault, former CEO of the asset management firm GL Capital Partners, was sentenced to nine years in prison and ordered to make restitution of $15.3 million, according to the Securities and Exchange Commission. Mr. Thibeault had pled gui... Read More |
Fines seven firms $238,000 for role in Realty Capital proxy fraud by Mack Chen The securities regulator says agents for the firms submitted unauthorized proxy votes for nontraded REITs controlled by a Nicholas Schorsch firm The seven broker-dealers hit with the fine are: Voya Financial Advisors Inc. ; FMN Capital Corp.;&nb... Read More |
Retirement calculators show 'dramatically different' results by Mack Chen Corporate Insight found a 60% variance in monthly income projections, and an even higher 85% in the suggested retirement goals of these calculators. Specifically, even though the same investor profile was plugged into the calculators, the projected reti... Read More |
CONSUMER WATCHDOG SUES BANK FOR $83M by Mack Chen Norway’s consumer watchdog is suing the country’s largest bank, DNB, on behalf of 150,000 customers, claiming it has overcharged them 690 million kroner ($83 million) in management fees in “falsely active funds.” In one of Norway... Read More |
UNDERGROUND ECONOMY GROWING STEADILY by Mack Chen In 2013, total underground activity in Canada was valued at $45.6 billion, says Statistics Canada—that’s equivalent to 2.4% of GDP. In fact, the UE has increased 3.8% from 2012, growing at the same rate as GDP. Canada’s undergroun... Read More |
More older Americans are working than at any time since the turn of the century by Mack Chen More older Americans are working than at any time since the turn of the century. 18.8% of Americans aged 65 and up — about 9 million people — report being full-time or part-time employees, according to a new report by Pew Research Cen... Read More |
Mutual fund investors continue to suffer from buying high, selling low by Mack Chen “Investors tend to buy high and sell low, missing out on a fund's gains in value,” said Russel Kinnel, chair of Morningstar's North America ratings committee.Mr. Kinnel evaluated U.S. open end funds and calculated Mutual fund investo... Read More |
71% of U.S. households fall below the $100,000 asset threshold for advisers by Mack Chen Almost three-quarters of Americans don't have enough savings to be worth the while of most financial advisers, but they may find a home with robo-advisers or some combination of both. Almost 90 million, or 71%, of U.S. households have investible assets... Read More |
Medical Capital executive gets 10-year sentence for fraud by Mack Chen Over 11 months in 2008 and 2009, Mr. Lampariello misappropriated funds invested with one of the MedCap series of deals and used the money to make payments to prior investors and to pay himself administrative fees, according to a statement from the U.S. Att... Read More |
Red flags on Canadian public pension investment by Mack Chen Canada spends “significantly” less on publicly funded pension support – through programs such as the Canada Pension Plan/Quebec Pension Plan, Old Age Security and the Guaranteed Income Supplement – than other OECD countries, the bri... Read More |
MassMutual settles 401(k) suit with its employees for $31 million by Mack Chen Massachusetts Mutual Life Insurance Co. has agreed to a nearly $31 million settlement in an excessive-fee lawsuit involving the firm's own retirement plans, joining the ranks of other prominent retirement services providers that have settled all... Read More |
The 5,000-year history of interest rates shows just how historically low US rates are right now by Mack Chen So to make things a bit clearer, we put together an annotated list of key historical episodes and the corresponding interest rate of the time, using the data from "The Trader and His Shadow." >>> Read More |
See how much the new child benefit saves you by Mack Chen Use this calculator to determine an estimate of how much those defunct programs helped your family—and what you can expect the CCB to deposit in your bank account. >>> Read More |
Canadians overly confident about retirement preparation by Mack Chen Nearly a quarter (24 per cent) of the employees surveyed don’t think they’ll be financially prepared at retirement. More than a third (35 per cent) save less than 10 per cent of their current salary for retirement and, on average, plan to withd... Read More |
Expect retirement savings law by 2018 by Mack Chen Retirement and policy executives at asset management firm State Street Global Advisors expect Congress to pass comprehensive legislation overhauling the U.S. retirement savings system by the end of 2018. The firm's expectation is that ... Read More |
62% of Canadians would pay for better retirement benefi by Mack Chen Nearly two-thirds (62 per cent) of Canadian employees would be willing to pay more out of their paycheque in order to receive a more generous retirement benefit, according to a survey by Willis Towers Watson. The survey, which polled more than 2,000 Can... Read More |
BANKS BOOST FEES EVEN AS PROFITS RISE by Mack Chen Several of Canada’s biggest banks are upping the fees that they charge customers even as they continue to rake in hefty profits, and experts say Canadians are likely too complacent to do much about it. TD Bank boosted a number of the fees associat... Read More |
FORMER REP FINED $20,000 OVER LEVERAGED ETFS by Mack Chen The penalty decision document says IIROC stated during a January hearing that the “respondent recommended high-risk, leveraged exchange traded funds to several of his clients […] The respondent overlooked or disregarded clear, unambiguous disc... Read More |
HSBC ENTITIES SETTLE WITH BCSC OVER EXCESS FEES by Mack Chen In a settlement agreement with the British Columbia Securities Commission, HSBC Investment Funds (Canada) Inc. (HIFC) and HSBC Private Wealth Services (Canada) Inc. (HPWS) have agreed they charged excess fees in some client accounts. ... Read More |
Investors haven't hoarded cash like this in 15 years by Mack Chen Investors surveyed by the firm now have 5.7% of their net holdings in cash, the highest percentage since November 2001. Recall that in November 2001 the US was mired in recession while dealing with the fallout of both the tech-bubble bursting and the Se... Read More |
The 81-year-old Voya Corporate Leaders Trust beats most by doing nothing by Mack Chen Now in its 81st year, the fund has beaten the Standard and Poor's 500 stock index the past 15 years, according to Morningstar, the Chicago investment analyst. Voya Corporate Leaders is up an average 7.75% a year, vs. 5.58% for the S&P 500 index. Vo... Read More |
Mutual fund industry needs to change by Mack Chen My thesis is that ETFs are fine as long as you don't trade them. As long as they're not traded, they can be more convenient for some people. The problem with some ETFs is how weird they are. The Securities and Exchange Commission is looking at trip... Read More |
SEC fines Morgan Stanley $1 million for data-protection failures by Mack Chen The Securities and Exchange Commission slapped Morgan Stanley with a $1 million penalty to settle charges related to failures to protect customer data, the agency announced Wednesday. A former broker working in Morgan Stanley's wealth managem... Read More |
Retiree benefit plans shrinking quickly by Mack Chen The poll of 289 Canadian organizations found that in the past four years, 22 per cent of respondents had made reductions to their retiree benefit plans and 14 per cent had made improvements. But in the future, just four per cent will make improve... Read More |
Fines not tax-deductible for broker-dealers by Mack Chen The Internal Revenue Service has indicated fines and penalties levied by the brokerage industry's primary regulator are not tax-deductible, which could end up costing those firms hit with such financial damages. In a memo published Fri... Read More |
FRENCH BANK ORDERED TO PAY $510K TO FORMER TRADER by Mack Chen The bank insists it wasn’t aware of his actions, but Kerviel argues that his superiors knew what was going on. He has become an icon for critics of the banking world. French bank Societe Generale has been ordered to pay about 4... Read More |
T. Rowe Price would pay about $194 million to fund shareholders and other clients for an error it made on buyout of Dell by Mack Chen At the time of the buyout , T. Rowe Price thought that the $13.75 share price offered by Michael Dell and others undervalued the company. “Several T. Rowe Price funds, trusts, and clients subsequently filed a petition with the Delaware Court of Chan... Read More |
Ontario passes ORPP bill by Mack Chen Ontario has passed the Ontario Retirement Pension Plan Act, 2016 today, despite the impending meeting of Canada’s finance ministers on June 19-20 to discuss enhancements to the Canada Pension Plan. The government said in a news ... Read More |
CPP EXPANSION WON’T HELP VULNERABLE SENIORS by Mack Chen For the small number of seniors considered low income who receive an average of $3,610 from the Canada Pension Plan each year, enhancements to the national pension may not be beneficial, according to a new study from the Fraser Institute. By l... Read More |
Momentum Investment Partners fraudulently failed to disclose higher fees by Mack Chen Avatar's clients paid almost $111, 000 in additional fees from May 2013 to March 2014 for no additional advisory services, according to a complaint the agency filed the same day in federal court in Connecticut. The firm had been investing... Read More |
Fidelity sued by Delta 401(k) participants over alleged fiduciary breach by Mack Chen Participants in a Delta Air Lines Inc. 401(k) plan have sued units of Fidelity Investments , alleging fiduciary breaches in Fidelity's record-keeping role. The participants, who are seeking class-action status, alleged that Fidelity “w... Read More |
Fed, China fears force investors to check out of Asia by Mack Chen SINGAPORE (Reuters) - Having dumped Asian shares on resurgent worries about China's economy, the specter of more aggressive U.S. interest rate rises is now forcing global investors to sell the region's bonds and currencies. A net $3.2 billion le... Read More |
CPPIB’s fiscal report reflects long-term challenges for pension funds by Mack Chen While the Canada Pension Plan Investment Board’s modest 3.4 per cent investment return announced last week will have minimal short-term effects, its investment income will have significant ramifications in the future. The CPPIB acknowled... Read More |
Retiree benefit plans shrinking quickly by Mack Chen The poll of 289 Canadian organizations found that in the past four years, 22 per cent of respondents had made reductions to their retiree benefit plans and 14 per cent had made improvements. But in the future, just four per cent will make improve... Read More |
Citi was fined $425 million for rate manipulation — here are the secret trader transcripts by Mack Chen The US Commodity Futures Trading Commission fined Citibank a combined $425 million (£288.5 million) on Wednesday to settle various rate-fixing allegations from 2007 to 2012 . The allegations center on the manipulation of Libo... Read More |
Excessive-fee suit targeting $9 million 401(k) plan could be 'harbinger' for industry by Mack Chen A new class-action lawsuit targeting excessive 401(k) fees in a $9 million plan could herald a new frontier of sorts in this type of litigation. The suit, Damberg et al v. LaMettry's Collision Inc. et al , alleges plan fiduciaries breached t... Read More |
Here's who actually owns the stock market - it is owned by the average joe. by Mack Chen It's easy to think that the stock market is the playground of hedge funds and day traders, but in reality most of the stock market is owned by the average joe. In fact, the largest chunk is doing one thing: helping people... Read More |
The 'black swan event' that could send oil to $25 a barrel by Mack Chen Oil's had a pretty good year. The commodity's seen a nice rally in light of a weaker US dollar , stronger economic data from China , decreasing non-OPEC production , and a continued rise in demand. ... Read More |
Deutsche Bank's credit rating was downgraded to 2 notches above junk by Mack Chen Deutsche Bank's credit rating was lowered by Moody's on Monday, citing difficulties with the lender's plan to stabilise itself in a world of low growth and low interest rates. The bank's credit rating for senior unsecured debt, which is... Read More |
She could face a maximum sentence of 287 ½ years in prison. by Mack Chen A Winnebago County judge has ordered a two-week trial for a former Oshkosh financial adviser accused of stealing $4 million from elderly clients. The trial for Jean A. Walsh-Josephson, 56, is set for Feb. 20 through March 3, 2017, according to online co... Read More |
GOLFER PHIL MICKELSON NAMED IN INSIDER TRADING COMPLAINT by Mack Chen In 2012, the SEC says, Walters called Mickelson, who owed him money, and urged him to trade Dean Foods stock. The SEC says Mickelson did so the next day and made a profit of $931,000. As a relief defendant, Mickelson is not accused of participating in i... Read More |
CPPIB RETURN DROPS TO 3.4%, LOWEST SINCE 2009 by Mack Chen The Canada Pension Plan Investment Board saw its net investment return for the fiscal year ended March 31, 2016 drop to 3.4 per cent, a decline of nearly 15 percentage points since last year’s return of 18.3 per cen... Read More |
Massachusetts investment adviser Gregg Caplitz sentenced to prison for fraud, SEC says by Mack Chen Investment adviser Gregg Caplitz was sentenced to three and a half years in federal prison and ordered to pay $1.89 million to more than a dozen victims who lost retirement savings because of his fraud, according to the Securities and Exchange Commission. ... Read More |
FINRA FINES RAYMOND JAMES US$17M by Mack Chen FINRA has fined Raymond James & Associates and Raymond James Financial Services, US$17 million for widespread failures related to the firms’ anti-money laundering programs. Raymond James & Associates (RJA) was fined $8 million and Raymond ... Read More |
Former Thrivent broker barred from securities business for defrauding woman he met at church: Finra by Mack Chen Miguel Angel Hernandez has been barred from the brokerage industry after allegedly lying to obtain $25,000 in cash from an elderly woman he met at church, according to the Financial Industry Regulatory Authority Inc. While a registered broker at Thriven... Read More |
CANADA COULD ADAPT TO NEGATIVE RATES: BOC by Mack Chen It’s long been accepted that interest rates can’t fall below zero, however, eliminating the possibility of negative rates “limits a central bank’s ability to provide further stimulus to the economy through conventional decrease... Read More |
Why the ETF acronym can be misleading by Mack Chen 'EXCHANGE' - In fact, approximately 40% of all ETF trading is done "off-exchange," according to a study by Bloomberg Tradebook. 'TRADED' - There are now 1,900 ETFs in the U.S., and about 400 of them po... Read More |
MFDA FINES REP $10,000 OVER PRE-SIGNED FORMS by Mack Chen A settlement hearing in the matter of Brian Blundell was held on May 12. In the settlement agreement, the respondent admitted that: between March 2010 and May 2014, he obtained, maintained and used to process redemptions 10 pre... Read More |
Former star LPL broker who was fired seeking $30M in arbitration claim by Mack Chen James "Jeb" Bashaw, a top-rated adviser by Barron's magazine, is seeking $30 million in an arbitration claim filed Tuesday with the Financial Industry Regulatory Authority Inc., naming both LPL and LPL's CEO Mark Casady as respondents. ... Read More |
WHAT FORTYSOMETHINGS EXPECT FROM THEIR ADVISORS by Mack Chen Fortysomethings have competing priorities (e.g., jobs, kids, parents, debt, saving), and they may feel ignored by the media, which focuses on boomers and boomers’ kids. Help them clarify their priorities, but don’t ask, “What do you want ... Read More |
Planning for new parents - How does RESP planning work? by Mack Chen Q. How does RESP planning work? A. Let’s consider a few hypothetical situations. Each assumes the parents/child are able to receive the $500 per year education grant, and that their income is too high to receive additional income-tested grants. ... Read More |
The state-backed pensions lifeboat is 'a pyramid scheme with a dwindling number of members' by Mack Chen The state-backed Pension Protection Fund (PPF), charged with paying the pensions schemes of collapsed companies, is "a pyramid scheme with a dwindling number of members," a leading commentator has told MPs. Philip Coggan, a columnist for The E... Read More |
Google faces data breach from benefits management provider by Mack Chen The company sent a data breach notice to its U.S. employees on Monday, explaining its benefits management provider had mistakenly sent a list of employees’ names and social security numbers to a benefits manager at another company. &... Read More |
Former Wells Fargo broker agrees to Finra ban by Mack Chen Wells Fargo & Co. broker Christopher John Pierce agreed to be barred from working with any firm registered with the Financial Industry Regulatory Authority Inc. after allegedly stealing from customers' banking accounts. Mr. Pierce, who wa... Read More |
SEE THE MAJOR CANADIAN FINANCIAL FIRMS IN THE PANAMA PAPERS by Mack Chen There are 912 offshore entities with Canadian links named in the Panama Papers. The Canadian firms included: Bennett Jones LLP as an intermediary ( here ) Blake, Cassels & Graydon (Calgary) as an intermediary ( here ) Haywood Securiti... Read More |
Madoff sons' fight over cash persists years after their deaths by Mack Chen Mark and Andrew Madoff died without resolving a 2009 lawsuit accusing them of squandering $150 million of investors' money and recent settlement talks with the estates have hit dead ends. Their ex-wives and other relations cut deals years ago. The brot... Read More |
Twitter is banning US spy agencies from using a service that can detect terrorist attacks early by Mack Chen Twitter has reportedly banned US intelligence agencies from using Dataminr, a service it part-owns that provides real-time alerts for breaking news like natural disasters, terror attacks, and actionable business events. The Wall Street Journal reported ... Read More |
Louis Martin Blazer III took about $2.35 million from five clients to invest in movie projects in Ponzi-like fashion by Mack Chen A financial adviser in Pittsburgh stole money from several professional athletes to invest in movie projects in which he had a stake, according to charges by the Securities and Exchange Commission. Louis Martin Blazer III took about $2.35 million from f... Read More |
RBC agrees to give CRA names of clients linked to ‘Panama Papers’ law firm by Mack Chen The Canada Revenue Agency had sought a court order against the Royal Bank of Canada (RBC) to compel disclosure and that the bank would not be challenging it. Royal Bank confirmed the story. “We respect the confidentiality of our clients within the... Read More |
UNDERSTANDING CPPIB’S RATES OF RETURN by Mack Chen Anyone born after 1955 (retiring in 2021 or later) will receive a modest return on their contributions of 3.0% or less. Any CPP-eligible Canadian born after 1971 (retiring in 2037 or later) who worked full-time will receive an annual return of just 2.1% in... Read More |
Deutsche Bank is being investigated for suspected market manipulation by Mack Chen A prosecutor in southern Italy is investigating the German bank's sale of 7 billion euros worth of Italian state debt as Italy approached a debt crisis that eventually brought down the government of former Prime Minister Silvio Berlusconi. Deutsche ... Read More |
APPLE LOSES FIGHT FOR EXCLUSIVE RIGHTS TO “IPHONE” NAME IN CHINA by Mack Chen Apple has lost a legal fight with a Chinese company that a Beijing court says is allowed to use the iPhone name on wallets and handbags. The court said Apple failed to prove iPhone was a “famous brand” in China before the local company appli... Read More |
MetLife to pay record Finra fine for misleading annuity customers by Mack Chen MetLife Inc. agreed to pay $25 million to settle a probe of abuses tied to variable annuities, the highest-ever penalty for those products by the Financial Industry Regulatory Authority. The sum includes a $20 million fine and $5 million to be pa... Read More |
7 banks have agreed to settle rate-rigging claims by Mack Chen Seven of the world's biggest banks have agreed to pay $324 million (£222.7 million) to settle a private US lawsuit accusing them of rigging an interest rate benchmark used in the $553 trillion (£380.2 trillion) derivatives market. The se... Read More |
Apple shares closed down for an eighth-straight day on Monday by Mack Chen Apple shares closed down for an eighth-straight day on Monday — the first time this has happened since July 1998. The stock has lost 11% since April 26, when the company reported first-quarter earnings that fell short of analysts' expe... Read More |
Atlanta firm to re-pay $10 million feds say it short-changed investors by Mack Chen A unit of Atlanta money manager Invesco agreed to restore almost $10.3 million to investors to settle a federal complaint that it violated retiree protections by using clients’ money to shore up an investment fund. The U.S. Department of Labor, wh... Read More |
REP FINED $100K FOR OBA, SHARING NON-PUBLIC INFORMATION by Mack Chen Mendelman admitted he borrowed funds from a client and engaged in outside business activities by facilitating off-book investments by his clients, without his firm’s knowledge. IIROC adds Mendelman also shared non-public, material information co... Read More |
Pension administrators burdened with tracking down missing retirees by Mack Chen The Ontario Teachers’ Pension Plan has 34,000 inactive members for whom it has no address or an incorrect one or who don’t respond to communications. The burden lies in finding members over the age of 71 who don’t have any da... Read More |
DEUTSCHE BANK NET PROFIT FALLS 58% IN TURBULENT MARKETS by Mack Chen Deutsche Bank saw net profit fall 58% in the first quarter from the same period a year ago as turbulent financial markets deterred client activity. Germany’s largest bank made €236 million ($335.3million) net profit, down from €559 milli... Read More |
Dominic Tersigni effected unauthorized trades - IIROC REP SUSPENDED, FINED OVER UNAUTHORIZED TRADES by Mack Chen between February 2009 and May 2014, Tersigni effected unauthorized trades in the accounts of two clients, contrary to IIROC Dealer Member Rule 29.1. Tersigni is also required to pay costs in the amount of $25,000. The ... Read More |
Schwab shuns load funds in DOL's wake by Mack Chen The move away from sales loads, and higher fund expenses in general, will become a sign of the times under the DOL rule “We expect more firms to look to no-load options for investors as advisers and their clients become more cost-conscious,... Read More |
59% of retirees worry about making retirement savings last by Mack Chen More than half (59 per cent) of retirees are worried about making their retirement savings stretch for their remaining years, according to a new survey by Investors Group. Some 64 per cent of respondents said they find it hard to strike a... Read More |
Apple blows earnings, stock drops 8% by Mack Chen Apple delivered its March-period earnings report on Tuesday afternoon. It missed estimates for earnings per share by $0.09, and the stock is down 8% in after-hours trading. As expected, the company posted its first year-ove... Read More |
J.P. Morgan broker-dealer and custodian fined $1 million by Mack Chen Broker-dealer and custody affiliates of JPMorgan Chase Bank, N.A. have been fined more than $1 million by an industry regulator for a number of operational, supervisory and record-keeping deficiencies at the firms. The Financial Industry Regulatory Auth... Read More |
Deutsche Bank co-CEO acquitted of fraud charges by Mack Chen Deutsche Bank co-CEO Juergen Fitschen has been acquitted of attempted fraud charges related to the bank’s long-running battle with the heirs of a now-deceased media mogul. Deutsche Bank paid Kirch’s heirs 925 million euro... Read More |
WISDOMTREE TO LAUNCH ETFS IN CANADA by Mack Chen WisdomTree Investments has formed WisdomTree Asset Management Canada. Pending regulatory approval, the company will distribute domestic ETFs. The company’s funds will track the following Canadian dollar-based WisdomTree indexes: the WisdomTre... Read More |
You can open digital savings account with a deposit from as little as $1. by Mack Chen Goldman Sachs is getting in on the online-only bank action, offering a digital savings account at a rate of 1.05%. And you can open it with a deposit from as little as $1. The new online-only US savings account, on GSBank.com , comes as part of ... Read More |
$20M benefits fraud, kickbacks case underway in Sudbury by Mack Chen Kickbacks for health benefits billed to multinational industrial company Atlas Copco are at the centre of a criminal trial underway in Sudbury, Ont., that’s being billed as the one of the largest frauds in northern Ontario history. The allege... Read More |
How Canadian Tire connects retirement to profits by Mack Chen Canadian Tire Corp. was an early adopter of profit sharing as a way to include all of its employees in the success of the company, but a big feature of the program that sets it apart is its use as a retirement savings account that automatically registers e... Read More |
Jailed Hedge-Fund Manager Sues Lawyer Over `Rushed' Home Sale by Mack Chen Convicted fraudster Michael Balboa, who sold his house to pay for U.S. defense attorneys, is suing a British lawyer whom he blames for the “rushed sale” of his property. Balboa, a former hedge-fund manager at Millennium Global Investmen... Read More |
The more you pay, the less you get from funds by Mack Chen Investing in an actively managed fund with high fees is like betting on a smoker to win a marathon, according to a new study released by Morningstar. Morningstar's active/passive barometer measures actively managed funds against a composite of relev... Read More |
Did Fidelity cheat its own client out of millions of dollars? by Mack Chen Peter Deutsch is seeking as much as $400 million to $500 million in damages from Fidelity in Finra arbitration before a Finra panel. The wealthy wine merchant was on a risky mission. He'd decided to buy control of a troubled Chinese company and then... Read More |
Half of Toronto-area workers have faced mental-health issues by Mack Chen More than 1.5 million employees in the greater Toronto and Hamilton area have experienced a mental-health issue, according to new research by CivicAction. The study, the result of research supported by Morneau Shepell and the Canadian Centre for Ec... Read More |
CANADIAN INVESTORS CHOOSING EM OVER U.S. EQUITIES by Mack Chen In February, Canadian investors rotated assets out of U.S. equities and into emerging market opportunities, says Prab Sagoo, associate director at Nasdaq Advisory Services, in his weekly market commentary. Over the same period, he adds, U.S. i... Read More |
Investors poured $32 billion into bonds in March with Vanguard, BlackRock dominating by Mack Chen One reason for the strong flows to bonds: The stock market's extreme volatility in January and February. From the first of the year through its Feb. 11 bottom, the Standard & Poor's 500 stock index fell 10.5%, and closed the first quarter with ... Read More |
Joseph Nacchio and his wife, Anne M. Esker, were recently awarded $14.2 million in a lawsuit against Goldman Sachs by Mack Chen Convicted felon Joseph Nacchio and his wife, Anne M. Esker, were recently awarded $14.2 million in a lawsuit against a division of Goldman Sachs for a breach of advisory duties that resulted in disappointing performance of their life insurance. The couple ... Read More |
Employers face up to $10K penalty for not complying with ORPP by Mack Chen Employers that fail to comply with the rules under the Ontario Retirement Pension Plan could face administrative monetary penalties of up to $10,000, according to new legislation introduced yesterday. The details came in Bill 186, a new piece of le... Read More |
SEC ALLEGES ANALYST USED MOM’S ACCOUNT FOR INSIDER TRADING by Mack Chen The SEC alleges that John Afriyie found out about an impending acquisition of home security company The ADT Corporation when prospective acquirer Apollo Global Management approached the Manhattan-based investment firm where he was employed and discussed po... Read More |
$6 TRILLION IN BONDS TRADING IN NEGATIVE YIELD by Mack Chen about one third of European government bond yields are trading with a negative yield and, globally, about a quarter of government bond yields have a negative yield That means more than $6 trillion worth of bonds are trading in negative yield. >>... Read More |
MOST RETIREES WORRIED ABOUT RUNNING OUT OF MONEY by Mack Chen Nearly half (48%) of the retired Canadians surveyed agreed with the statement: “I’m worried about my money lasting my lifetime,” while roughly one-in-five (19%) strongly agreed. This anxiety is shared by substantial numbers ... Read More |
88% of U.S. employees are stressed due to personal finances by Mack Chen The majority (88%) of U.S. employees are stressed or worried on some level about their personal financial situation, according to a new survey by Workplace Options. More than half (55%) of respondents said their level of stress had reached eit... Read More |
KPMG SHOULD BE CHARGED WITH FACILITATING TAX EVASION (the Panama Papers) by Mack Chen Canadians for Tax Fairness (C4TF) hopes the global blow-out from the Panama Papers will pressure the federal government to prosecute one of Canada’s top accounting firms. The Ottawa-based tax watchdog has called on CRA to charge KPMG... Read More |
COST OF DETACHED HOME IN TORONTO HITS $1.17M by Mack Chen The number of sales was up about 16%, compared with the same month and quarter last year. The average selling price for all types of residential property in March was $688,181.That’s up about $74,000, or 12% from the March 2015 average price of $6... Read More |
CANADIAN TRADE DEFICIT TRIPLED TO $1.9B IN FEB by Mack Chen Canada’s trade deficit grew to $1.9 billion in February, more than triple the shortfall of $628 million the month before, Statistics Canada says Tuesday. Economists had expected a deficit of $900 million for January, according to Thomson Reut... Read More |
SEC CHARGES 4 IN FRAUDULENT “FREE DINNER” SCHEME by Mack Chen According to the SEC’s complaint, Paul and Ellis created fraudulent marketing materials including some with performance numbers that were “cut and pasted” from another firm’s website. The complaint further alleges that Quay an... Read More |
Canadian pension solvency takes hit in first quarter of 2016 by Mack Chen The solvency position of Canadian pension plans declined in the first quarter of 2016, an impact of volatile markets, according to two reports published this week. According to the Mercer Pension Health Index, the median solvency ratio of the consu... Read More |
Most women don't trust financial advisers by Mack Chen More than 90 percent of the respondents to a recent survey said they felt financial services companies were more interested in selling them products than providing advice. They may be on to something. A 2015 discussion paper published by t... Read More |
SEC charges brothers with $2.7 million Ponzi scheme targeting elderly by Mack Chen The Securities and Exchange Commission has charged two brothers with orchestrating a $2.7 million Ponzi scheme targeting unsophisticated elderly investors. As part of his scheme, he created a Robbins Lane website, as well as a brochure advertising an op... Read More |
INVESTMENT BANK EXEC CHARGED IN $95M FRAUD SCHEME by Mack Chen An Ivy League-educated former executive at a New York investment bank was arrested Monday on charges he tried to defraud investors of more than $95 million as he led what a prosecutor called a “shameful charade” to cover his tracks. Andrew C... Read More |
John Bivona “orchestrated a Ponzi-like scheme that has defrauded investors in up-and-coming technology companies,” by Mack Chen An unregistered investment adviser who raised more than $53 million from investors and marketed investments in pre-IPO technology companies instead used investor money to pay his nephew's credit card bills, income taxes, a car loan, attorney fees and t... Read More |
LPL stock buyback cost shareholders $115 million: lawsuit by Mack Chen LPL Financial Holdings Inc. is being sued for a stock buyback program that cost the company and ultimately its shareholders $115 million, according to a class action complaint filed Tuesday. The complaint, filed in U.S. District Court in the Sout... Read More |
Broker-dealer owner indicted in $17 million pump-and-dump scheme by Mack Chen The owner of a New York broker-dealer was charged with fraudulently inflating the price of two micro-cap stocks before selling them to investors, generating $17.2 million in gross trading proceeds. Guy Gentile, 39, was indicted in federal court in Newar... Read More |
Nearly one out of five older Americans have been victims of financial swindles by Mack Chen Seventeen percent of elderly Americans have been financially abused, a decline from six years ago and evidence that such abuse might be curbed with the help of medical professionals, according to the Investor Protection Trust . The elderly Ameri... Read More |
Texas adviser barred for fraudulent sales of life settlements by Mack Chen The regulator also said Mr. Poe received 10% commissions for the product sales from 2011 to 2015 even though he wasn't registered as an agent of the firm. James Poe, a Fort Worth-based adviser and president of Jim Poe & Associates Inc... Read More |
IIROC WANTS COURT AUTHORITY TO COLLECT FINES by Mack Chen Nationwide, the collection rate for firms is 100%, compared to less than 20% for individuals. In Ontario, there is over $20 million in outstanding fines against individuals (since 2008). The Ontario collection rate for individuals for the current f... Read More |
Retirement confidence plateaus in 2016 by Mack Chen Retirement confidence is strongly correlated to participation in retirement plans such as 401(k) plans or ownership of an individual retirement account. These workers are twice as likely to be “very confident” when compared to those without suc... Read More |
Broker took in more than $1.7 million in commissions churning accounts at Craig Scott Capital by Mack Chen Broker Edward Beyn collected more than $1.7 million in commissions and fees by excessively trading his clients' accounts while registered at Craig Scott Capital, according to the Financial Industry Regulatory Authority Inc.'s Department of Enforcem... Read More |
Triad Advisors to pay more than $200,000 for failing to give sales charge discounts on unit investment trusts by Mack Chen Triad Advisors, a Norcross, Ga.,-based broker, has agreed to pay more than $200,000 in fines and restitution for failing to give some of its customers sales charge discounts on unit investment trusts, according to a settlement letter with the Financ... Read More |
Morningstar expands access to ESG fund scores for socially conscious investors by Mack Chen Morningstar Inc. 's new mutual fund sustainability rankings have been rolled out to the general public, giving individual investors a new tool for determining how well specific funds score when it comes to environmental, social and corporate governanc... Read More |
Vanguard has raised expense ratios on 52 funds over the past six months by Mack Chen Mutual fund expense ratios can go up and down — even at Vanguard Group Inc. The company has raised expense ratios on 52 funds in the past six months, although they're still lower than an ant's shoelaces. “With the relea... Read More |
GL Capital Partners' former CEO Daniel Thibeault pleads guilty to $15 million fraud tied to loan fund by Mack Chen Daniel Thibeault, former CEO of the asset management firm GL Capital Partners, has pleaded guilty to criminal charges he defrauded fund investors of $15 million, according to the Securities and Exchange Commission. Mr. Thibeault, 41, used money in the G... Read More |
Three independent broker-dealers formerly operating under AIG's umbrella have been fined $7.5 million and ordered to pay restitution of $2 million to clients by Mack Chen Three independent broker-dealers formerly operating under the umbrella of the AIG Advisor Group have been fined $7.5 million by the Securities and Exchange Commission and ordered to pay restitution of $2 million to clients for persistent failures to use lo... Read More |
Genworth to pay $219M to settle securities lawsuit related to long-term-care insurance by Mack Chen Genworth Financial Inc. has settled a class-action lawsuit alleging misrepresentations over its long-term-care insurance business for $219 million. Genworth, the largest long-term-care insurance carrier, announced after the market close on Friday... Read More |
Investment advisers becoming more frequent target of SEC enforcement by Mack Chen Agency brought 126 actions against more than 230 adviser or company defendants in 2015, about 15% of the total enforcement cases last year The agency brought 126 actions against more than 230 defendants in the investment adviser/company area in 2015, ac... Read More |
Barred broker Claus Foerster indicted for fraud by Mack Chen Claus Foerster , a former broker in South Carolina, was indicted by a grand jury for defrauding clients of $2.8 million over a 14-year-period. Mr. Foerster perpetrated his fraud from 2000 to June 2014 while employed as a financial adviser at Smith Barn... Read More |
Ex-JPMorgan broker gets five years - stole millions of dollars from customers by Mack Chen Michael Oppenheim, who at one point had about 500 clients and almost $90 million under management at JPMorgan, got so deeply in debt that, according to his lawyer, even his bookie expressed sympathy for him. The former broker also got a break from U.S. ... Read More |
HACKERS ALLEGEDLY STEAL $100M FROM NEW YORK FED ACCOUNT by Mack Chen The Bangladesh central bank says it is working to recover some US$100 million allegedly stolen by Chinese hackers from an account at the Federal Reserve Bank of New York. Authorities have given few details about how the money disappeared. But Finance Mi... Read More |
Couple files Finra arbitration claim against Morgan Stanley in connection with energy investment by Mack Chen A retired couple from North Carolina has filed an arbitration claim against Morgan Stanley, alleging it failed to adequately disclose the risks involved in a proprietary energy-related investment in which they've lost more than $100,000, according to t... Read More |
Wells Fargo & Co. were sued by a U.S. regulator for allegedly misleading investors by Mack Chen After being hired to find financing for Schilling's 38 Studios LLC, Wells Fargo failed to disclose that the $50 million raised from a bond offering was at least $25 million short of what the company needed to bring the game to market, the Securities an... Read More |
Canadian pension solvency ratio down in February by Mack Chen The median solvency ratio of Canadian defined benefit pension plans stood at 80.8% as of Feb. 29, a decline of 2.1 percentage points from the ratio on the first of the month, according to Aon Hewitt. Its Pension Plan Solvency Survey , which trac... Read More |
IIROC BANS, FINES REP FOR LITANY OF VIOLATIONS by Mack Chen Investment Industry Regulatory Organization of Canada (IIROC) found that Wasseem Dirani misappropriated funds from clients, executed unauthorized trades in client accounts, engaged in personal financial dealings with clients, and f... Read More |
Photographer: Luke Sharrett/Bloomberg It Just Got Even Harder to Trust Financial Advisers by Mack Chen Nearly 20 percent of financial advisers at Oppenheimer & Co., with more than 2,000 advisers counted in the study, have misconduct records, according to the new paper. A new working paper by business school professors at the Universi... Read More |
How a Financial Analyst Did a Favor for a Friend and Uncovered a $7 Billion Ponzi Scheme by Mack Chen In late 2008, the world was reeling from a global financial crisis. As markets tanked and funding became scarcer by the day, two massive Ponzi schemes unraveled. One was the $17.5 billion Ponzi run by Bernie Madoff, the other was a smaller but no l... Read More |
Quebec shakes up pension landscape with shift to going-concern funding by Mack Chen In a move that has drawn significant attention in the pension community, Quebec has introduced a potential solution to a major conundrum for employers: how to keep their costly defined benefit pension plans sustainable in the long run. Under the new leg... Read More |
Up to 600 TTC employees involved in benefits fraud by Mack Chen Up to 600 TTC employees are under investigation for their involvement in a benefits fraud scandal. The false claims for health benefits totalled more than $5.1 million. The details are included in an annual report from auditor general Beverly ... Read More |
UBS CHARGED WITH ORGANIZING TAX EVASION by Mack Chen A Belgian judge charged Swiss bank UBS on Friday with money laundering and “serious and organized tax evasion,” saying it directly sought clients in the country to help them skip taxes. UBS said in a statement it takes note of the Belgian au... Read More |
Money manager's mea culpa cost him nearly $1 million by Mack Chen Mr. Chou, who was named fund manager of the decade in Canada by Morningstar Inc , decided to return $918,468 to the fund, a sum equal to most of last year's advisory fee, according to a regulatory filing. The mutual fund slid 22% last yea... Read More |
Employees facing less comfortable retirement than parents: survey by Mack Chen Nearly three-quarters of Canadian employees believe they are facing a less comfortable retirement than their parents, according to new research by Willis Towers Watson. The generational divide goes even further than retirement, according to the research... Read More |
MORE THAN ONE-THIRD PULLING MONEY FROM RRSPS by Mack Chen Thirty-four percent of Canadians have withdrawn money from their RRSPs before retirement, according to a poll by BMO Financial Group. The study examined the reasons behind Canadians’ decisions to make these withdrawals and their concerns about the co... Read More |
Think your stock fund is risky? Try these ETFs by Mack Chen Exchange-traded funds have achieved a new feat, producing dozens of products that are riskier than the most volatile individual stocks. The primary purpose of all funds, including ETFs, is to reduce risk to the investor by diversification. A portfolio o... Read More |
Broker-dealers that sold UDF REITs to face investor claims by Mack Chen Independent broker-dealers that sold the distressed series of UDF real estate investment trusts could soon be facing arbitration claims from angry investors. IMS Securities Inc., Berthel Fisher & Co. Financial Services Inc. , Centauru... Read More |
56% of employers with DC plans think staff are saving enough by Mack Chen More than half (56%) of Canadian employers with defined contribution pension plans think their employees are saving enough for retirement, while just 24% of employees feel the same way, according to new research. Another 55% think their e... Read More |
TFSA OR RRSP? THE GIS MAY CHANGE THE ANSWER by Mack Chen Isaac, a 45-year-old single man earning $58,500/year in Ontario, wanted to know the best place to invest the $5,500 he had saved over the past year. He also plans to save this amount each year, indexed for inflation, until he retires at age 65. We assum... Read More |
Healthcare company ordered to repay US$1.7 million to profit-sharing plan by Mack Chen Alliance Home Healthcare has been ordered by a federal judge to repay a total of US$1,736,339 to its profit-sharing plan. An investigation by the U.S. Department of Labor’s Employee Benefits Security Administration in Chicago found that the Illino... Read More |
ORPP ads reflect misplaced priorities by Mack Chen It’s not in existence yet, but the Ontario Retirement Pension Plan is already coming under scrutiny from the auditor general. In this case, Bonnie Lysyk is taking the Ontario government to task over its recent ads for the new pension scheme. In her a... Read More |
Swiss watchmakers are hurting thanks to Apple and Samsung by Mack Chen Apple and Samsung led the growth, with each accounting for 63% and 16% of the overall smartwatch market, respectively. "The Swiss watch industry has been sticking its head in the sand and hoping smartwatches will go away," he wrote. "Swis... Read More |
Aequitas Capital alts platform implodes, while investors and advisers are kept in the dark by Mack Chen The sudden and stunning collapse of Aequitas Capital Management continues to unfold. The obscure alternative investments platform is under investigation by both the SEC and Consumer Financial Protection Bureau. Nearly $600 million was bet on a diverse arra... Read More |
How to manage tax-efficient drawdowns in retirement by Mack Chen The conventional wisdom goes as such: Take distributions first from taxable accounts, such as a brokerage account; then from tax-deferred accounts, such as 401(k)s and IRAs; and then from tax-exempt, or Roth, accounts. That traditional way of thinking i... Read More |
General Motors plans to sell 20- and 30-year notes to make a payment on its huge U.S. pension obligation for hourly workers. by Mack Chen The Detroit company filed a prospectus for the offering with the U.S. Securities and Exchange Commission on Thursday that did not specify an amount. But Moody’s Investor Services said it would be $2 billion in senior unsecured credit. At the end o... Read More |
Operating for years like a Ponzi scheme by Mack Chen The firm, which also manages nontraded REITs, has seen its stock price fall 81% in the past two months after a hedge fund alleged it was operating for years like a Ponzi scheme. “The FBI is lawfully present and conducting law enforcement activity&... Read More |
Canadian retirees are living on 62% of the income they had before retiring by Mack Chen 88% of retired Canadians described life in retirement as positive, with 32% saying their biggest financial surprise is now they were able to manage on a reduced budget. Another 10% said they are spending less than expected. On average, retirees are spen... Read More |
Co-op Atlantic staff facing 30% pension reduction by Mack Chen Some 1,200 employees and retirees of Co-op Atlantic are facing a 30% reduction in their pension. According to pension administrator Eckler, which was appointed after Co-op Atlantic filed for creditor protection last year, the 30% reductio... Read More |
SOME CANADIANS UNABLE TO PAY BILLS by Mack Chen Nearly half of Canadians surveyed last month are within $200 per month of being unable to pay for their bills and make their debt payments one-quarter of the 1,582 people who responded to the poll were already unable to cover their bills and debt ... Read More |
Canadians think they’re in a worse financial position than they were two years ago by Mack Chen About one-quarter of Canadians think they’re in a worse financial position than they were two years ago, finds Manulife’s Investor Sentiment Index. Canadians are increasingly viewing housing as a less attractive investment, having dropp... Read More |
Canadians’ retirement savings ‘wholly inadequate’ by Mack Chen The value of retirement assets of Canadians aged between 55 and 64 without an employer pension is “wholly inadequate” at an overall median value of just $3,000. among this age group, 32% have less than $1,000 in retirement savings... Read More |
IT'S OFFICIAL: Global stocks are in a bear market by Mack Chen That's it: Global stocks are officially in a bear market. On Thursday, the MSCI all-country world index closed down 20% from its recent high to meet that technical definition. The index tracks large and mid-cap stock performance across ... Read More |
Lawsuit filed against IAM pension fund by Mack Chen The U.S. Department of Labor has filed a lawsuit against the International Association of Machinists (IAM) National Pension Fund and its board of trustees, citing multiple violations of the Employee Retirement Income Security Act . The lawsuit, ... Read More |
INDUSTRIAL ALLIANCE SECURITIES AGREES TO $75,000 IIROC SETTLEMEN by Mack Chen IAS Inc. admitted that it failed to take reasonable measures to ensure that two of its representatives, and some of its supervisors, possessed the required knowledge and understood the features and risks inherent in leveraged Exchange-Traded Funds, and fai... Read More |
CPP Fund ended 2015 up nearly $10 billion in assets by Mack Chen The $9.7-billion increase in assets for the quarter consisted of $12.3 billion in net investment income after all CPPIB costs, less $2.6 billion in CPP cash outflows. The portfolio delivered a gross investment return of 4.6% for the quarter, or 4.5% n... Read More |
The stocks Wall Street analysts love most are getting crushed this year by Mack Chen According to the analysts at Bespoke Investment Group, companies with the most "Buy" ratings from Wall Street analysts have done much worse than the rest of the market. "The stocks with the most Buy ratings by analysts have gott... Read More |
Obama aims to double SEC funding to target adviser oversight by Mack Chen President Barack Obama wants to double the SEC's funding over the next five years to protect investors by helping the agency better regulate investment advisers, the White House said Tuesday. In the president's fiscal 2017 budget proposal, the S... Read More |
Ontario spent $600K on ORPP ads during election by Mack Chen The Canadian Taxpayers’ Federation asked for the figure through a Freedom of Information request and was told that $592,834 was spent between Aug. 2 and Oct. 14, five days before the federal election. Premier Kathleen Wynne is defending nearly $60... Read More |
Assets of largest retirement funds tumble 2.3% for year by Mack Chen Asset movement among defined contribution plans in the top 1,000 was relatively flat, down 0.3% to $3.01 trillion, while defined benefit plans decreased 3.3%, to $5.83 trillion. Among the 200 largest plans, DC plan assets inched up 1.5% to $1.81 trillio... Read More |
Global stocks have already lost over $6 trillion in 2016 by Mack Chen It's ugly in global markets right now. Really ugly . In the US, stocks had their worst start to a year ever . In Europe things haven't been much better with bad news coming out of Berlin, London, and Athens ... Read More |
Broker charged $11M in commissions for nontraded REITs and BDCs and lied about it by Mack Chen A broker has been charged by Finra for lying to a Native American tribe about the $11 million in commissions he charged when he sold the tribe $190 million in nontraded real estate investment trusts and business development companies. From June 2011 to ... Read More |
NY COURT TO HEAR EX-GOLDMAN BOARD MEMBERS’ APPEA by Mack Chen A federal appeals court in New York has agreed to rehear the appeal of the insider-trading conviction of a former board member for Goldman Sachs and Proctor & Gamble. The 2nd U.S. Circuit Court of Appeals on Thursday issued an order saying it will r... Read More |
Finra cracks down on firms for missing discounts on UIT sales by Mack Chen The three firms, Next Financial Group Inc. , Key Investment Services and Stephens Inc., were charged $1.2 million with failing to apply sales charge discounts to certain customers' eligible purchases of unit investment trusts, or UITs, and related su... Read More |
Why Is the U.S. Still Sitting on $4 Billion in Madoff Money? by Mack Chen There’s a $4 billion pot of cash at the Department of Justice for victims of Bernard L. Madoff’s Ponzi scheme. Thousands of them have been trying to tap the fund since it was set up three years ago, without seeing a penny. Many are elderly and ... Read More |
Pension plans feel effect of January’s volatile by Mack Chen The health of Canadian pension plans suffered the effects of January’s slumping equity markets and declining bond yields. At January 29, median solvency stood at 82.9%, more than three percentage points below the ratio as at January 1, 2016. Onl... Read More |
Student debt is clouding future retirement income by Mack Chen 52% of Americans are at risk of a shortfall in retirement, based on data that includes an average student debt load of $18,000. If you raise that debt burden to $31,000 — the 2013 average for recent college students — and increase the universe ... Read More |
Texas securities regulator cracks down on firm selling pension streams by Mack Chen SoBell executes agreements with the recipients of pension benefits to sell their income stream to investors for at least $35,000 to more than $1 million, offering annual returns of 7% to 8%. SoBell and Mr. Gamber have engaged in fraud by selling unregis... Read More |
CPP more costly than other public sector pensions: report by Mack Chen It found that the CPP, which is the largest plan with $269 billion of assets, had the highest expense ratio at 1.07% of its assets on average for the whole period between 2009 and 2014. The OTPP, the next largest plan at $154 billion of assets, had th... Read More |
TAX HIKES EXPECTED AS NEW BRUNSWICK UNVEILS PROVINCIAL BUDGET by Mack Chen The government is addressing a structural deficit of about $600 million, with a provincial debt that is roughly $12.4 billion. A goverment official has told The Canadian Press that measures will include cutting 30% of civil service managers, pha... Read More |
IIROC WANTS COURT AUTHORITY TO COLLECT FINES by Mack Chen IIROC has a lacklustre record of collecting fines levied against individuals. Kriegler notes that while some rule-breakers don’t pay because they don’t have the money, others skirt fines by ceasing to be IIROC registrants. “In Ont... Read More |
Hollywood makes it tough on advisers to build trust by Mack Chen Richard Dreyfuss, as well as an upcoming HBO movie on the events that features Robert De Niro, could remind an already distrustful public that investing with the wrong financial adviser can ruin lives. A trailer for the film shows a squirrelly-looking M... Read More |
Bay St., Wall St. sink at the open by Mack Chen Soon after the open, the TSX fell 185.38 points or 12,639.75. The Dow Jones industrial average was down 77.94 points, or 0.47 percent, at 16,388.36, the S&P 500 was down 9.67 points, or 0.5 percent, at 1,930.57 and the Nasdaq composite was down 26.98 p... Read More |
New bill would provide universal retirement coverage for U.S. workers by Mack Chen New legislation introduced Thursday would establish a retirement plan for U.S. workers who have no access to a workplace plan, building on other recent retirement coverage initiatives undertaken at the federal and state levels. The American Savings Act,... Read More |
Adviser accused of fraud boycotts SEC's in-house administrative trial by Mack Chen An investment adviser accused of fraud by the U.S. Securities and Exchange Commission has a new way to defend herself at an internal agency trial. She's boycotting the proceeding. Dawn Bennett failed to show up to the in-house court in Washington ... Read More |
The iPhone lost market share in most of the world last year by Mack Chen The iPhone juggernaut is finally slowing down. Growth slowed to a crawl in the last quarter of 2015, and on yesterday's earnings call, Tim Cook admitted that iPhone sales will probably drop next quarter (quarter comparisons are from the previous year).... Read More |
IIROC SUSPENDS JACOB SECURITIES INC. by Mack Chen IIROC has released its reasons for the decision (dated January 14, 2016; posted on IIROC’s website January 26, 2016). They include: serious lack of accounting and reporting controls and risk management resulting in misstatem... Read More |
Apple has been here before by Mack Chen Growth in the last quarter of 2013 (Q1 '14 here, as these are fiscal quarters) was similarly low, as consumers didn't see enough new bells and whistles in the iPhone 5S compared with the iPhone 5. Meanwhile, a lot of consumers were favoring&nb... Read More |
ORPP design and feature details announced by Mack Chen The Ontario government has announced a series of design and feature details for the Ontario Retirement Pension Plan (ORPP) this morning. A clearer definition of employment so that employers can determine which employees are eligible for the plan.... Read More |
Scotia downgraded, RBC’s outlook revised as rating agencies see risks by Mack Chen Two of Canada’s biggest banks have attracted the attention of credit rating agencies. Bank of Nova Scotia was downgraded one notch by Moody’s over what it calls a “shift away from the bank’s traditionally low risk appetite.” ... Read More |
Ontario pension solvency down at end of 2015 by Mack Chen The median solvency ratio of defined benefit (DB) pension plans in Ontario was down very slightly in the fourth quarter of 2015, to 83% on December 31 compared to 84% on September 30, according to a quarterly update from the Financial Servic... Read More |
Fidelity fields record calls for 401(k) advice as markets tank by Mack Chen As key indexes first started going south earlier this month, almost 4 million people contacted Fidelity on January 4 alone, either online or by phone, to check on their retirement savings. >>> Read More |
Recent class-action surge ups the ante for 401(k) advice by Mack Chen Eleven major class-action lawsuits were filed in federal courts around the country against 401(k) sponsors or providers of retirement products in the fourth quarter of 2015. All involve alleged fiduciary breach claims of, among other things, excessive fees... Read More |
THERE ARE SIGNS THE U.S. IS IN RECESSION AGAIN by Mack Chen In early 2014, Bob Hoye, a Vancouver-based financial analyst, predicted that oil prices had nearly peaked and soon the price would fall up to 75%, reports Maclean’s . With oil trading under US$30 lately, his prediction has come true. ... Read More |
Millennials clueless about retirement savings plans by Mack Chen Almost a third (32%) of millennials admit they are “not at all knowledgeable” about retirement savings plans (RSPs), according to new survey by TD. The survey found that only 50% of those aged between 18-33 know that the ... Read More |
Buying real estate from non-residents by Mack Chen If the seller doesn’t get a clearance certificate, the responsibility shifts to you, the purchaser, to remit either 50% of the purchase price for depreciable property, or 25% of the purchase price for other capital property. Section 116 of th... Read More |
Ex-Goldman Director Rajat Gupta Back Home After Prison Stay by Mack Chen Former Goldman Sachs Group Inc. director Rajat Gupta, who went to prison for leaking tips to hedge fund billionaire Raj Rajaratnam, is a free man. Jailed in June 2014, Gupta spent about 19 months in a federal prison in Devens, Massachusetts. He was free... Read More |
62% of millennials have started saving for retirement by Mack Chen Almost two-thirds (62%) of millennials have started saving for retirement and almost half (46%) started before the age of 25 millennials also have their sights set high, with 40% of respondents believing they will need more than $1 million saved fo... Read More |
Myths about hedge funds by Mack Chen Myth 1: Hedge funds are risky and highly leveraged Hedging is a strategy used to guard against the risk of loss. The perception of hedge funds as riskier than traditional investment vehicles is incorrect. In fact, the traditional, long-only approach to ... Read More |
Halifax Chronicle Herald union votes to strike over pension benefits by Mack Chen Unionized workers in the newsroom of Canada’s largest independently-owned daily newspaper voted overwhelmingly in favour of striking Saturday if a contract cannot be reached next week. The Halifax Typographical Union, which represents 61 unionized... Read More |
GOLDMAN SACHS TO PAY $5 BILLION IN MORTGAGE SETTLEMENT by Mack Chen Goldman Sachs said last week that it will pay roughly $5 billion to settle federal and state probes of its role in the sale of shoddy mortgages in the years leading to the housing bubble and subsequent financial crisis. Coming nearly eight yea... Read More |
SHERIFF OF WALL STREET: We're no longer able to bring certain insider trading cases by Mack Chen US Attorney Preet Bharara, often called the '"Sheriff of Wall Street," in December gave up on a big insider trading case . That was the direct result of an earlier, successful appeal against the SEC's case again... Read More |
Goldman Sachs to pay $15M to settle SEC charges by Mack Chen The Securities and Exchange Commission has announced that Goldman, Sachs & Co. has agreed to pay $15 million to settle charges that its securities lending practices violated federal regulations. According to the SEC’s order instituting a ... Read More |
The stock market just did something it's done only 3 other times in the past 100 years — and it's not good by Mack Chen On Wednesday stocks got crushed and officially entered a "correction," defined as a 10% drop from recent highs. This is the second time in the past six months that this has happened — remember, stocks fell 10% in August in just a... Read More |
Which states' residents are best at managing money? by Mack Chen These are the 10 best states when it comes to how well investors count quarters and live within their means, according to a CreditCard.com study, which compared each state's average credit score with its median income. Read More Read More |
Police make arrest in CRA scam by Mack Chen Police say the alleged victim was contacted a week ago by someone claiming to be from the CRA saying that the person owed back taxes. The elderly person complied and deposited a sum of money into an account provided and then contacted police. Investi... Read More |
IIROC SUSPENDS, FINES REP OVER DISCRETIONARY TRANSACTIONS by Mack Chen On December 18, 2015, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a settlement agreement, with sanctions, between IIROC staff and Xavier Cheng Kuo Li. Li admitted that he made discretionary transactions ... Read More |
Many Albertans struggling to save for retirement by Mack Chen Saving for retirement is a top priority for most Albertans, but nearly half (48%) aren’t meeting their goals, up from 40% in a July survey, according to the latest ATB Investor Beat . Those who are falling short of their savings goals cite... Read More |
The stock market hasn't made sense in 14 of the last 20 quarters by Mack Chen Earnings are what investors ultimately want out of the companies they invest in. Earnings, and the expectations for earnings growth, are therefore what give stock prices their value. However, stock prices and any revisions to earnings expectations ... Read More |
Key 2016 dates for retired Americans by Mack Chen Jan. 1 CLAIM SPOUSAL BENEFITS Clients who are 62 or older by Jan. 1, 2016 retain the right to claim only spousal benefits when they file for Social Security at age 66 or later, allowing their own retirement benefit to grow up to age 70, assuming the ... Read More |
Massachusetts regulator charges securities firm with improper sale to elderly investor by Mack Chen Mr. Galvin, the secretary of the commonwealth, is seeking restitution from the firm, Citizens Securities, for the unnamed investor, who lost about $7,000 when she got out of the investment portfolio, according to a statement from his office. Read More ... Read More |
AMERICAN MILLENNIALS BOOST RETIREMENT SAVINGS by Mack Chen Millennials between the ages of 25 and 34 are saving a median of 7.5% of their pay for retirement, including whatever match they get from their jobs, according to a survey by Fidelity Investments of 4,650 households with at least $20,000 of annual income. ... Read More |
New benefit amounts for CPP and OAS came in from January 1, 2016 by Mack Chen CPP benefits will increase by 1.2% for those already receiving the benefits. For 2016, the maximum CPP retirement benefit for new recipients age 65 will be $1,092.50 per month, an increase of $330 for the year compared to the maximum in 2015. ... Read More |
J.P. MORGAN PAYING $4 MILLION FOR ALLEGEDLY MISLEADING CLIENTS by Mack Chen The Securities and Exchange Commission today announced that J.P. Morgan’s brokerage business agreed to pay $4 million to settle charges that it falsely stated on its private banking website, and in marketing materials, that advisors are compensated &... Read More |
Most Americans' savings still fall short by Mack Chen 45% of Americans are now on track to live comfortably in retirement, up from 38% reported in the previous study conducted in 2013. However, that means more than half — 55% — are still at risk of being unprepared to completely cover essential li... Read More |
Finra restitution to investors triples to $96.2 million in 2015 by Mack Chen Over the last year, Finra has become much more assertive in returning money to investors ripped off by brokerages. In 2015, the Financial Industry Regulatory Authority Inc. secured $96.2 million in restitution, almost triple the $32.3 million it recorde... Read More |
2015 ended on a down note for Canadian pensions by Mack Chen The median solvency ratio of the pension plans of Mercer’s clients stood at 85% on December 31, 2015, down from 88% at the beginning of the year, with around nine out of 10 plans still being in solvency deficit position. Recognizing the challengin... Read More |
compliance lessons from a tough year by Mack Chen Here are seven compliance messages that rang loud and clear in 2015 and will likely be heard throughout the new year. Read More Read More |
RCAP files for bankruptcy by Mack Chen Cetera Financial Group, with 9,500 financial advisers at 10 different broker-dealers, will not be part of the bankruptcy proceeding, Read More Read More |
CUTTING DEBT STILL TOPS CANADIANS’ FINANCIAL GOALS by Mack Chen 26% of respondents named debt reduction as their key financial goal for 2016, the sixth-straight year it has topped the list. Read More Read More |
Apple will pay 318 million euros in Italy tax fraud probe by Mack Chen Apple has agreed to pay up 318 million euros in Italy to settle a probe into alleged tax fraud, a spokesman for the tax office said Tuesday. The company's Italian subsidiary has been under investigation for allegedly failing to declare more than one... Read More |
Barclays Capital to pay $13.75M over mutual fund sales by Mack Chen Finra continued its recent push to hold broker-dealers accountable for the suitability of product sales and saying today that it had reached a settlement with Barclays Capital Inc. in which the firm would pay restitution of more than $10 million to clients... Read More |
stocks went nowhere in 2015 by Mack Chen The S&P 500 closed 2014 at 2,058.9. On Tuesday, it opened at 2,060.5. In other words, the stock market has effectively gone nowhere this year. Read More Read More |
BMO LIFE ASSURANCE CEO SUED BY ADVISOR by Mack Chen BMO Life Assurance CEO Peter McCarthy is being sued by David Hébert, formerly the vice-president of business development at BBA Groupe Financier and now a vice-president at Canaccord Financial. Hébert alleges BMO executives caused his demo... Read More |
Summary - The global financial markets in 2015 by Mack Chen The turbulence in high yield was really not a big deal when compared with the performance of other risky assets, including equities US stocks down 1% and stocks in core Europe up 7% EM equities at the extremes, with Brazil down 13% and Ru... Read More |
JPMorgan Chase has agreed to pay $150 million to public pension funds by Mack Chen Huge losses from transactions booked through the London office of JPMorgan’s chief investment office caused the bank’s stock value to plummet, harming investors. The Ohio Public Employees Retirement System, the state’s largest public p... Read More |
Morgan Stanley ordered to pay $8.8 million for unsupervised trading by Mack Chen The Securities and Exchange Commission announced it has ordered Morgan Stanley Investment Management and brokerage firm Societe Generale Americas to pay $8.8 million and $1 million respectively for what the regulator claims was unsupervised prearranged tra... Read More |
Face time just as important to younger clients by Mack Chen Fifty-four percent of clients between the ages of 18 and 44 want to communicate with their advisers face to face. That's the same level of interest seen face-to-face interaction seen in clients between the ages of 45 and 54 and higher than the 48% leve... Read More |
IIROC suspends Jacob Securities Inc. by Mack Chen Following an Expedited Hearing held on December 17, 2015, with notice to Jacob Securities Inc. (“JSI”), a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) ordered the following Read More |
Must Read - Top 10 Advisor to Client stories of 2015 by Mack Chen This year, many of the stories our readers found most compelling were about making sense of the financial world. That’s why some of our top stories explain how advisors are paid, why interest rates are so low and how to best use RRSPs, for instance. ... Read More |
JPMorgan to pay more than $300M in settlement over wealth management conflicts by Mack Chen JPMorgan Chase & Co. will pay more than $300 million to settle U.S. allegations that it didn't disclose its preference for putting clients' money into the bank's own investment products. America's largest bank by assets admitt... Read More |
Fidelity targeted in another ERISA class-action suit by Mack Chen A unit of Fidelity Investments has been targeted in a class-action suit for fiduciary breach under ERISA as a result of its alleged mismanagement of a stable value fund. The fund's low investment returns and high fees made it an imprudent... Read More |
Canadians postpone retirement to support children by Mack Chen Many Canadians are sacrificing their own financial well-being to provide financial support to their children, according to a new report by BMO Wealth Canada. The report, The Family Bank – a source of comfort for everyone , found that ... Read More |
SENIORS CAN’T AFFORD TO LIVE AT HOME DURING RETIREMENT by Mack Chen Most Canadian seniors (93%) prefer to live and age at home, finds the Federation of Canadian Municipalities (FCM). Also, according to HomEquity Bank, 30% of Canadians nearing retirement have $50,000 or less in savings. And, almost 70% of those... Read More |
Third Avenue fund collapse may be 'much bigger problem' for bond ETFs by Mack Chen Last week when the Third Avenue Focused Credit Fund (TFCVX) announced it was shutting down , but that investors might have to wait months for their money, the high-yield bond market kicked into high gear, as illustrated by increased trading of the ... Read More |
United Development Funding IV, the Texas REIT was operating like a Ponzi scheme by Mack Chen United Development Funding IV, the Texas REIT hit by anonymous allegations late last week that it was operating like a Ponzi scheme, provided fresh details Monday on an unnamed hedge fund or funds that it claims have been illegally distorting its share pri... Read More |
HOUSING VULNERABILITIES HAVE EDGED HIGHER: BOC by Mack Chen Vulnerabilities in the housing sector have edged higher, the BoC says today in its Financial System Review (FSR) , while the overall level of risk to Canada’s financial system has remained roughly unchanged since June. The BoC continu... Read More |
HOME PRICES TO FALL IN 3 OIL-PRODUCING PROVINCES by Mack Chen The association is estimating Alberta’s average housing price will fall in 2016 by 2.5%. The decline in Saskatchewan is expected to be 1.2% and in Newfoundland the decline is expected to be 1%. Read More Read More |
SEC to limit use of derivatives by mutual funds, ETFs by Mack Chen Federal regulators are moving toward imposing restrictions on the use of derivatives by mutual funds, aiming to protect investors in funds that rely on the high-risk transactions. Read More Read More |
ONTARIANS WORRY ABOUT POVERTY IN RETIREMENT by Mack Chen More than half of Ontarians without workplace pensions (58%) saved nothing for retirement over the last year. As such, 83% of respondents fear that without better pension coverage Ontario will be headed for a retirement income crisis, where senior pover... Read More |
Market Dips as Oil Dives: 3 Things to Know by Mack Chen Oil continues to grease the skids for the stock market. Oil prices fell to a seven-year low last week, with the TSX following to the tune of a 4.3% decline. The S&P 500 fared better, declining 3.8%. This highlights the question: is the tail or the dog ... Read More |
Texas REIT in free fall after Ponzi allegations by Mack Chen Shares of United Development Funding IV have plummeted after an investor website published a report that alleged the real estate investment trust has operated for years like a Ponzi scheme. Read More Read More |
Elderly woman awarded more than $1M in churning case against ex-Morgan Stanley broker by Mack Chen Arbitrators recently found in favor of Genevieve Lenehan, 92, giving her punitive and compensatory damages, attorneys' fees, and other costs that amounted to $1.06 million. Ms. Lenehan asserted that a former Morgan Stanley broker, Justin Amaral, bot... Read More |
TFSA BACK TO $5,500 AS OF JAN. 1 by Mack Chen It’s official. The $10,000 TFSA limit is rolling back to $5,500. The change is effective January 1, 2016, so clients will not be affected for 2015. That means there’s no rush to contribute, says Jamie Golombek, managing director, Tax and Est... Read More |
Is it a good idea? - Smaller pension plans starting to invest like big ones by Mack Chen Smaller and mid-size pension plans are taking advantage of what used to be the exclusive domain of larger pension funds. Halifax Regional Municipality Pension Plan (HRM) - The $1.7-billion plan is allowed to allocate 50% of its portfolio ... Read More |
ROBOS NOT EXEMPT FROM REGISTRATION, CONDUCT RULES: CSA by Mack Chen There’s a difference between the robo-advisors operating in Canada versus the U.S., says CSA. “Online advisers that have been approved to carry on business in Canada are not ‘robo-advisers’ of the kind that are operating in the Unit... Read More |
Broker-dealer settles variable annuity allegations for $475,000 by Mack Chen Comprehensive Asset Management and Servicing Inc. has agreed to pay $475,000 to settle allegations that the firm failed to reasonably supervise representatives' sales of variable annuities, among other complaints. Read More Read More |
Employees have options to fund their own defined-benefit pensions by Mack Chen Some plan providers now offer deferred annuities within group retirement plans for employees who feel more comfortable knowing what their payments will be in retirement. It’s not right for everyone but it may be good for investors who can’t han... Read More |
TWO ARRESTED IN MULTIMILLION-DOLLAR PYRAMID SCHEME by Mack Chen Toronto police have arrested two men in a pyramid scheme they say raked in more than US$93 million. The Financial Crimes Unit alleges the Banners Broker scheme operated between October 2010 and March 2013 — luring victims with the promise of doubl... Read More |
Why does iShares S&P TSX 60 (XIU), with the highest management fee, have the most assets? by Mack Chen Five of the six ETFs we’ll discuss in this column (see “ Canadian equity market ETFs ”) have management fees of 0.05% or less. Canada, the originator of the ETF, can now boast the lowest-priced ETF at 0.03% (including a 4-bps rebate): H... Read More |
Merrill to small advisers: Work harder for same pay by Mack Chen Bank of America Merrill Lynch telling its second-tier brokers this week that they need to sell more products and services to earn the same pay in 2016. For the first time since 2009, Merrill Lynch is formally changing the levels of advisers' payout ... Read More |
Madoff victims get early holiday gift with $1.1M checks by Mack Chen Bernard Madoff's victims are getting an early holiday treat as the trustee unwinding his fraud begins sending out a total of $1.2 billion in recovered funds, with checks averaging $1.1 million each. The biggest payout to victims in more than three y... Read More |
Canada lost 35,700 jobs in November by Mack Chen The Canadian economy shed 35,700 jobs in November to reverse a rise in temporary work likely generated by October’s federal election, Statistics Canada said Friday. The number of public-administration jobs fell by 32,500 in November to offset ... Read More |
Canadians risk paying more tax if they wait by Mack Chen It’s important to act now before the holiday season begins if you hope to have enough time to take full advantage of tax-savings strategies for 2015 and beyond. With less than two months left before the calendar turns over, Canadians run the risk ... Read More |
if you choose to delay application for CPP, you take the risk of premature death and the loss of any future payouts. by Mack Chen CPP provides a death benefit to a maximum of $2,500 for eligible pensioners—not even three months’ worth of retirement payments. So, if you choose to delay application for CPP, you take the risk of premature death and the loss of any future pay... Read More |
$3 million settlement with Massachusetts Securities Division over complaint by Mack Chen RCS Capital Corp. said Wednesday it is shutting down its wholesaling brokerage division in the wake of declining sales of nontraded real estate investment trusts and allegations of fraud. Realty Capital Securities, was a cornerstone of his nontraded REI... Read More |
What is an RRSP? by Mack Chen A Registered Retirement Savings Plan is an account that helps you save money for the period after you stop working permanently. To encourage you to save, the plan has three advantages: You can reduce your taxable income immediately You can grow ret... Read More |
Why high-net-worth investors should avoid living on dividends alone by Mack Chen Dividends from Canadian (although not foreign) companies are taxed at a favourable rate relative to interest on bonds. Because of the mechanics of the dividend gross-up and tax credit, if an Ontario taxpayer has no taxable income other than their Canadian ... Read More |
Canada out of recession, GDP grows 2.3% by Mack Chen Canada has climbed out of the recession that nudged the economy into reverse over the first half of 2015, but a rebound in growth during the third quarter has already shown signs of lost momentum. Statistics Canada says Tuesday that the GDP grew at an a... Read More |
Canadian banks shouldn’t bear mortgage losses - Do you agree by Mack Chen Homebuyers with less than a 20% down payment are required to get mortgage default insurance, either from CMHC or one of the private mortgage insurers, when borrowing from a bank. That insurance covers the banks in cases where borrowers default on their loa... Read More |
Holiday season not the time to buy retail ETFs by Mack Chen Retail-oriented ETFs tend to underperform the market during this time. In the nine years since retail ETFs began to trade, investors would have been better off just sticking with their boring old S&P 500-stock index fund. Read More Read More |
Can you retire early through extreme frugality on a normal salary? Yup. by Mack Chen Now in his early 40s, this Canadian retired about 10 years ago by using his own form of extreme frugality. He saved at least 50% of his take-home pay and invested the remainder. He wasn’t making crazy money. His starting annual salary was $41,000 ;... Read More |
Toronto’s financial clout is increasing by Mack Chen The financial services sector directly accounted for 780,000 jobs and 6.8% of Canada’s GDP in 2014, finds a Conference Board of Canada report. At 33.3%, Toronto has the largest share of financial jobs, and its portion is rising. In 2004, Toronto h... Read More |
BARCLAYS FINED US$108 MILLION by Mack Chen British authorities have fined Barclays 72 million pounds ($108 million) for failing to safeguard against the risk that the bank would be used to facilitate financial crime. Read More Read More |
MORNINGSTAR ANNOUNCES FUND AWARD WINNERS by Mack Chen Morningstar’s Fund Awards were announced last night in Toronto. Are your clients in funds that got top honours? Read More Read More |
IIROC PROPOSAL CHANGES GAME FOR MUTUAL FUND ADVISORS by Mack Chen 1. Eliminate its current requirement for firms and individuals to be qualified to offer a full range of investment products, and instead allow firms and individuals to offer only mutual funds and exchange-traded funds (with appropriate adjustments for the ... Read More |
MOST CANADIANS DON’T HAVE A BUDGET by Mack Chen Many Canadians can improve their financial well-being simply by following a budget, says a report by the Financial Consumer Agency of Canada. Though 93% of people who have a budget stick to it most of the time, only 46% of people have a budget. ... Read More |
Tax tips for first-time homebuyers by Mack Chen 1. Use the Home Buyers’ Plan (HBP) You’re eligible if you meet CRA’s definition of a first-time homebuyer. To qualify, you can’t have lived in a home that you, your spouse or common-law partner, owned in the last four years. In t... Read More |
Ontarians worry about poverty in retirement: Poll by Mack Chen More than half of Ontarians without workplace pensions (58%) saved nothing for retirement over the last year, according to a new Healthcare of Ontario Pension Plan poll. More than 80% of respondents fear that without better pension coverage Ontario will... Read More |
How investors get yield wrong and how dangerous that can be by Mack Chen The way many retired investors think about the yield of their investment portfolios is complicated and puzzling. Too often, they blur the distinction between yield as an investment characteristic and yield as a source of income for retirement spending. My ... Read More |
FORMER LIBERAL STRATEGIST GETS HOUSE ARREST, FINE FOR TAX EVASION by Mack Chen The Canada Revenue Agency says a prominent Ottawa lobbyist and federal Liberal party strategist has been sentenced to house arrest and fined $396,259 for tax evasion. Read More Read More |
68% OF CANADIANS ARE FINANCIALLY LITERATE: REPORT by Mack Chen In all five of the countries listed above, between 68% and 71% of adults are considered financially literate. The study says, “On average, 55% of adults in major advanced economies, [including] Canada, France, Germany, Italy, Japan, the United Kingdo... Read More |
Missing Victoria advisor’s fund license revoked by Mack Chen A missing MFDA rep and former Canadian Olympic rower has had his licence terminated by a mutual fund company in the midst of a fraud investigation. Investia Financial Services is investigating Harold Backer, who hasn’t been seen since November 3rd... Read More |
FORMER IIROC REP SUSPENDED, FINED $30,000 by Mack Chen On November 3rd, 2015, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement, with sanctions, between IIROC staff and Robert Connor. Connor admitted that he made unsuitab... Read More |
DO CANADIANS VALUE FINANCIAL ADVICE? by Mack Chen The vast majority of people who work with advisors (96%) say the advice they receive is valuable, according to an Advocis national survey . The survey also examines the level of satisfaction clients have with the array of services they receive a... Read More |
6 retirement plan traps by Mack Chen Government-controlled plans - Government-controlled plans are connected to the stock market, leaving you susceptible to a significant market loss that can take a long time to recover from. Compounded fees - Average fees levied by retirement plans me... Read More |
How Canadians are squandering retirement savings by Mack Chen As many as 28% of Canadians fail to create plans before retiring, and 19% of retirees still don’t have adequate plans in place. Many Canadians are saving enough for retirement, but are at risk of improperly managing those savings, says a new repo... Read More |
CEO sentenced after defrauding investors of $130M by Mack Chen The former head of an Oregon-based chain of retirement centres was sentenced by a federal judge on Tuesday to 15 years in prison for defrauding investors of about $130 million. Prosecutors say Jon Harder operated what amounted to a Ponzi scheme, raising... Read More |
U.S. multi-employer pension plans fuel record $76.4B deficit by Mack Chen The deficit racked up by the U.S. federal agency that insures pensions for about 40 million Americans has increased 23% to $76.4 billion over the past year. The agency’s program for so-called multi-employer pension plans continues to account for a la... Read More |
AIG Advisor Group for sale by Mack Chen One of the largest networks of independent broker-dealers in the country, the AIG Advisor Group, recently hired a law firm, which in turn will select an investment bank to begin discussions with interested buyers, according to two sources with knowledge of... Read More |
CPP has lost out on $7B by Mack Chen Failure to divest carbon assets has cost pension plans $22B. Failure to divest carbon assets has cost pension plans $22B, report finds - Business - CBC News An analysis by Canadian research company Corporate Knights suggests that some of the world... Read More |
Ontario pension funds lost $2.4B from oil, coal investments: Report by Mack Chen Ontario pension funds lost $2.4B from oil, coal investments Ontario Teachers’ Pension Plan: $1.77 billion Ontario Municipal Employees Retirement System: $192 million Healthcare of Ontario Pension Plan: $53 million Ontario Pension Plan: $1... Read More |
F-Squared haunts Virtus as fund distributor pays $16.5M to settle false performance claims by Mack Chen Virtus Investment Advisers agreed to pay a $16.5 million fine to settle charges it publicized false performance data for the AlphaSector exchange-traded fund, the Securities and Exchange Commission reported Monday. According an SEC statement, Virtus pub... Read More |
EY FOUND LIABLE FOR OVER $10 MILLION IN MADOFF LOSSES by Mack Chen A jury in King County Superior Court has found the firm of Ernst & Young negligent and liable for half of more than US$20 million lost by a Washington state investment company in the wake of Bernie Madoff’s multi-decade investment scam. Friday... Read More |
TIME TO REFORM PENSIONS, SAY ACTUARIES by Mack Chen The Canadian retirement system is at a crossroads due to a convergence of forces, as people live longer, interest rates are low and equity markets are volatile, say the actuaries. Further, new types of pensions such as shared risk/jointly-sponsored and tar... Read More |
How much do you need to save for retirement? by Mack Chen The average Canadian couple can count on at least $30,000 in combined annual CPP and OAS payments once they stop working, Canadians have annual retirement income expectations of about $47,000 in after-tax income—and the good news is that lev... Read More |
CANADIANS WORRIED ABOUT FINANCES by Mack Chen The majority of Canadians (79%) aren’t confident they’ll achieve their financial goals, finds a study by Financial Planning Standards Council (FPSC). Further, just 18% say they’re knowledgeable about financial matters. Read More Read More |
What is a mutual fund? by Mack Chen The advantage for the average person is straightforward: With $1,000 to invest, you may able to afford one or two shares in Google. But if you put that same $1,000 into a mutual fund, you join a group of investors that owns a basket of investments. This... Read More |
Canada’s growing retiree population expected to suppress bond yields by Mack Chen Over the next decade, 3.5 million people will reach retirement age — the biggest increase in that cohort in Canadian history. And that means trouble for the economy. That retirement wave comprises “nearly 1,000 [people] per day, every day, f... Read More |
Massachusetts' Galvin charges Realty Capital Securities with proxy vote fraud by Mack Chen The state of Massachusetts Thursday charged Realty Capital Securities, part of RCS Capital Corp., with fraudulently rounding up proxy votes to support real estate deals sponsored by Nicholas Schorsch's AR Capital. In an administrative complaint, Mas... Read More |
NBA star files suit against ex-financial advisor by Mack Chen Spurs star Tim Duncan has filed another lawsuit against a former financial adviser he contends has cost him millions of dollars in lost investments. The lawsuit filed last week claims Charles Banks of Atlanta urged Duncan to invest $1.1 million in a cos... Read More |
ALBERTA FAMILIES EARNING LESS THAN $41K GET TAX CREDIT by Mack Chen Alberta is bringing in two benefits to give more money to low-income families. They are the new Alberta Child Benefit and enhanced Alberta Family Employment Tax Credit. All families earning less than $41,220 per year, including those receiving Assu... Read More |
Canada’s DB plans approach risk proactively: Report by Mack Chen Canadian DB pension plans are taking a more proactive and long-term approach to risk in an effort to better cope with volatility. These are the Canadian results of Aon Hewitt’s Global Pension Risk Survey 2015, which polled more than 100 DB plans w... Read More |
Canadians worry about retirement by Mack Chen Many Canadians in their late 40s and early 50s have large amounts of debt and little savings for retirement, CBC reports. On top of that, a number of pre-retirees see their homes as their retirement plans, but the story says that’s problematic bec... Read More |
Working longer for more savings? Don't count on it by Mack Chen According to Wells Fargo & Co. 's most recent annual retirement study , half of retired respondents retired earlier than planned. Many left the workforce due to reasons beyond their control: 37% due to health and 21% due to an emplo... Read More |
How to understand your credit rating by Mack Chen Finance expert Bruce Sellery tells CityLine the importance of our credit rating and how often we should check it. Read More Read More |
NBA's Tim Duncan files a second lawsuit against his financial adviser by Mack Chen NBA star Tim Duncan has filed another lawsuit against his former financial adviser, this time claiming to have lost $1.1 million through an investment in a bankrupt cosmetics company. The original lawsuit, charging $20 million in losses, ... Read More |
Forget boomers and millennials, Gen Xers need advisers' help the most by Mack Chen The adviser, Emilie Goldman, set up a budget with monthly allotments for clothing, cars and a dozen other spending categories. She also set up a plan to ensure that the couple won't outlive their money. “It's completely freeing,” sai... Read More |
The pitfall target benefit plans need to avoid by Mack Chen Target benefit plans (TBPs) have been making significant inroads in the public sector of late, more so than most of us realize. Not only are they found in New Brunswick and Prince Edward Island, where governments have adopted a variation of TBPs for their ... Read More |
2 EX-BANKERS CONVICTED IN LIBOR INTEREST RATE SCANDAL by Mack Chen Two British ex-bankers were convicted Thursday of conspiring to manipulate a key interest rate to earn money for their bank and colleagues who traded securities affected by interest rates. Anthony Allen, 44, shook his head and dropped his head onto a ta... Read More |
Why global dividend stocks have become one of the best plays in the market by Mack Chen Equity income investing has become one of the best plays in the market, with quoted companies paying out a record $1 trillion in dividends last year, according to the Henderson Global Dividend Index. And relative to other asset classes, dividend-paying ... Read More |
CPPIB IS CHANGING ITS INVESTMENT CULTURE by Mack Chen After the financial crisis, CPPIB took a hard look at its investment strategy and decided to re-vamp it , says Edwin Cass, senior VP and chief investment strategist for the CPPIB. Cass spoke about CPP’s investment framework at the CFA&rs... Read More |
Retirement saving still a worry by Mack Chen Worried about saving? You’re not alone. Although saving for retirement is a priority among many Canadian employees, a new Mercer survey says they also see it as a worry. Mercer’s Inside Employees’ Mind Survey shows tha... Read More |
TD wants 500 more advisors by Mack Chen “We have 4.3 million mass affluent clients and 500,000 high net worth clients. And today, we only bank 10% of them with an advice investment solution. So incredible opportunity to increase,” said Leo Salom, executive vice president, Wealth Mana... Read More |
Time to expand the tool kit for delivering retirement income by Mack Chen With the prevailing mindset around retirement planning today being one of accumulation, retirees often are left ill-prepared to shift their focus to generating income. Successfully converting accumulated assets into an efficient lifetime income stream is a... Read More |
Finra to seek a 'significant fine' from MetLife over variable annuity sales by Mack Chen MetLife Inc. , the largest U.S. life insurer, said the Financial Industry Regulatory Authority's staff has indicated the agency will seek a “significant fine” from the company's broker-dealer unit as part of a probe into possible viola... Read More |
7 common investment mistakes to avoid by Mack Chen 1.Falling in love with the story 2.Believing things are different this time 3.Confusing good ideas with good investments 4.Reaching for yield 5.Doubling down 6.Focusing on the near term 7.Riding winners too long Read More Read More |
Former Ameriprise Advisor Receives 88-Month Prison Sentence, $1M Fine by Mack Chen Susan Walker will serve seven years and four months in prison for a scheme involving stolen retirement money used to pay for a “lavish lifestyle.” On Monday, the U.S. District Court in Minneapolis sentenced former Ameriprise advisor Susan El... Read More |
Profits 'scam' at greedy Camelot by Mack Chen Dow Jones Newsletter THE operator of the National Lottery was yesterday accused of "making a mockery" of its monopoly after revealing profits of £71million - while chances of winning the jackpot have fallen dramatically. Annual accounts ... Read More |
Tackling the retirement readiness challenge by Mack Chen With the snowballing shift from DB to DC pension plans over the last decade or two, Canadians have grown more accustomed to owning responsibility for their retirement planning. But retirement readiness is another issue. There’s still a big gap for mo... Read More |
Pimco Total Return suffers 30th-straight month of investor outflows by Mack Chen Redemptions at the Pimco Total Return Fund reached 30 straight months in October as the former world's largest mutual fund fell to $93.7 billion in assets. The Pimco Income Fund continues to head in the other direction, surpassing $50 billion in ass... Read More |
CRA sets 2016 max pensionable earnings by Mack Chen The Canada Revenue Agency has announced that the maximum pensionable earnings under the Canada Pension Plan for 2016 will be $54,900, up from $53,600 in 2015. As such, contributors who earn more than $54,900 in 2016 aren’t required or permitted to ma... Read More |
Sharp decline for business conditions: RBC PMI by Mack Chen The latest RBC Canadian Manufacturing PMI survey pointed to another downturn in overall business conditions. That’s due to a decline in output, new orders and employment. Also, new export sales dropped for the first time since April, with survey r... Read More |
OSC ORDERS REAL ESTATE EXECS TO PAY $18M OVER FRAUD by Mack Chen Two former executives from the defunct real estate firm First Leaside Group must pay $18 million in penalties and restitution after Ontario’s securities regulator found they had defrauded investors by not disclosing a report critical of their busines... Read More |
Tax and pension tips for immigrants by Mack Chen There’s a lot to like about a Canadian dual citizenship. It allows you to fully take part in Canadian life while retaining most of the rights, privileges, (and sometimes obligations) of your home country, provided it recognizes dual citizenship. A... Read More |
10 scary retirement facts by Mack Chen At first it looked like Medicare premiums for some retirees could increase by a record-breaking 52% in 2016. Now it looks like the base amount will increase to $120 per month for new enrollees in Medicare in 2016 and anyone who is enrolled in Medicare but ... Read More |
Canada posts only 0.1% growth in August by Mack Chen Statistics Canada says the pace of economic growth in Canada slowed in August. The agency says the economy grew by 0.1% in the month, following increases of 0.4% in June and 0.3% in July. The result matched the expectations of economists, according t... Read More |
New bill aims to curtail elder financial abuse by Mack Chen The Senior$afe Act of 2015 is sponsored by Senators Susan Collins, R-Maine, and Claire McCaskill, D-Mo., the chairwoman and ranking member, respectively, of the Senate Special Committee on Aging. The Act would protect banks, credit unions, investment ad... Read More |
Yes, public pensions are cheaper by Mack Chen These expenses can be considerable. For example, an estimated 40% of the $1 trillion in Canadian mutual fund assets is retirement savings-related (e.g., RRSPs and TFSAs). If the holders of this $400 billion pay the reported average mutual fund fee of 2%, t... Read More |
How to report foreign exchange gains and losses to CRA by Mack Chen Why read this? You are a currency trader; have foreign-denominated securities; and/or own foreign currencies. What to do When to calculate gains or losses CRA says a foreign exchange gain or loss happens when a transaction occurs — not ... Read More |
Assante fined $400,000 over failed Tier 2 supervision by Mack Chen On October 13, 2015, a hearing panel of the Investment Industry Regulatory Organization of Canada accepted a settlement agreement, with sanctions, between IIROC staff and Assante Capital Management Ltd. In that agreement, Assante admitted that it failed... Read More |
CRIMINAL CHARGES ON TAP IN N.Y. FED, GOLDMAN SACHS LEAK CASE by Mack Chen Federal prosecutors in the U.S. are on the cusp of laying criminal charges in a case centring on confidential information leaked by a Federal Reserve Bank of New York employee to a former colleague who had taken a job at Goldman Sachs. Read More Read More |
Another five firms ordered to pay $18M for mutual fund overcharges by Mack Chen Finra says Edward Jones, Stifel Nicolaus & Co., Janney Montgomery Scott, Axa Advisors and Stephens Inc. failed to waive sales charges for certain retirement accounts and charities Read More Read More |
SEC CHARGES CREDIT RATING AGENCY WITH MISREPRESENTATIONS by Mack Chen The SEC has charged credit rating agency DBRS Inc. with misrepresenting its surveillance methodology for ratings of certain complex financial instruments during a three-year period. The firm agreed to pay nearly $6 million to settle the charges. &n... Read More |
Fidelity charged by Massachusetts with dishonest and unethical behavior by Mack Chen At least 13 unregistered Massachusetts investment advisers used Fidelity's platform, according to a statement from secretary of the commonwealth William Galvin. For those advisers, “Fidelity served as a haven from regulatory oversight as it ig... Read More |
Latest sentencing in $1.2B Scott Rothstein Ponzi scheme by Mack Chen Five years after a South Florida lawyer went to prison for running a $1.2 billion Ponzi scheme, his financial adviser faced his own sentencing. In 2010, Scott Rothstein, an attorney with Rothstein Rosenfeldt Adler in Fort Lauderdale was sentenced to 50 ... Read More |
Ontario will proceed with ORPP for now: Wynne by Mack Chen Wynne says her Liberal government will proceed with mandatory payroll deductions starting Jan. 1, 2017 for the new Ontario Retirement Pension Plan, which essentially mirrors the CPP for anyone who doesn’t already have a workplace pension. Read Mor... Read More |
Fidelity charged by Massachusetts with dishonest and unethical behavior by Mack Chen Fidelity Brokerage Services was charged in an administrative complaint Monday with dishonest and unethical behavior by the commonwealth of Massachusetts for allowing unregistered investment advisers to make trades through the Fidelity broker-dealer platfor... Read More |
What will my tax bill be under the Liberals? by Mack Chen Rate for taxable income between $44,700 and $89,401 would drop from 22% to 20.5%, for tax savings worth up to $670 a year per person. Tax rate for income above $200,000 would increase from 33% to 29%. On a $250,000 income, this would mean paying up to $... Read More |
10 best financial adviser jokes by Mack Chen 10. 'I have bad news and worse news ...' ... a financial adviser says to his client. "Which would you like to hear first?" “The bad news,” the client says. “All your money will be gone in 24 hours.” “Oh ... Read More |
3 arrested for alleged online fraud by Mack Chen The three people who have been arrested are connected to what police are calling an international fraud and money-laundering scheme allegedly run by a secretive, violent Nigerian organization with affiliates around the world. In a cautionary tale for yo... Read More |
It’s time to offer female-only retirement education by Mack Chen When I get ticked off with something a man does, I usually say, “Well, they die sooner.” And that’s true: Statistics Canada’s 2009 numbers put life expectancy for men at 79 years, compared with 83 for women. But will women have enou... Read More |
SEC files record number of enforcement cases and highest fines in 2015 by Mack Chen The SEC filed 807 enforcement actions and obtained orders for $4.2 billion in penalties and disgorgements of ill-gotten gains for the year ended Sept. 30. That's a 7% increase from the previous year's record of 755 actions in fiscal year 2014. Fine... Read More |
Franklin Templeton suffers big profit drop as investors pull cash from mutual funds by Mack Chen Franklin Resources Inc., the manager of the $58 billion Templeton Global Bond Fund, reported a worse-than-expected 44% drop in fiscal fourth-quarter profit as the slump in emerging markets and energy eroded assets and prompted record investor redemptions. ... Read More |
OUSTED POLITICIANS IN LINE FOR GOLDEN PENSIONS by Mack Chen The 180 MPs who were either defeated or didn’t seek re-election in the election will collect $5.3 million in annual pension payments, estimates the Canadian Taxpayers Federation. In total, pensions will be worth a cumulative $209 million by the ti... Read More |
Retirement savings crisis grows by Mack Chen Tim Egan has been working since he was 14. He's now 56 and has spent most of his career as a restaurant manager. He has virtually nothing saved for retirement and, until last month, never had a 401(k) account. Little wonder: Only two of the 20 resta... Read More |
ETFs having a tough year after roaring 2014 by Mack Chen At this time last year, 66% of ETFs were up. The recent selloff in the biotech sector has also erased names from the leaderboard, and now just seven ETFs have returns above 10% for the year. Last year it was 114 ETFs. Read More Read More |
Mutual fund fees under fire by Mack Chen A report commissioned by the CSA and prepared by The Brondesbury Group calls for an overhaul on how fees are paid on mutual funds. “There is conclusive evidence that commission-based compensation creates problems that must be addressed,” The... Read More |
Warren Buffett's top stocks are dogs this year by Mack Chen IBM shares sank nearly 6% Tuesday and are down 12% year-to-date. Those kinds of lousy returns seem to be par for the course for Buffett in 2015. Shares of megabank Wells Fargo ( WFC ), Berkshire's second-largest investment, are down 3%. ... Read More |
How to give money to grandchildren by Mack Chen Using a will to benefit grandchildren is the preferred approach for most grandparents. There are fewer uncertainties, since the grandparent may not know what he can comfortably afford to give away while he’s alive. And, the income attribution rules n... Read More |
Former adviser agrees to $2 million settlement in scheme to defraud mostly elderly clients by Mack Chen Michael Donnelly, former president of Coastal Investment Advisors Inc. in Wilmington, Del., admitted to defrauding 13 clients — at least 10 of whom were older than 65 — of nearly $2 million from 2007 through August 2014. Read More Read More |
Think of retirement as '35 years of unemployment by Mack Chen “I explain that we are not using the word 'retirement,' and instead to think about potentially being unemployed for 35 or more years,” said Michael Goodman, founder of Wealthstream Advisors. Such a change in thinking can help them co... Read More |
Using whole life insurance by Mack Chen Insurance plans must be able to withstand the pressures of time, while delivering what was promised years earlier. So how do you determine which ones will work both today and tomorrow? Looking back, we see whole life (WL) has performed well through economi... Read More |
Central banks running out of options by Mack Chen Domestically, we haven’t seen any QE yet, and the BoC’s policy rate is at 50 basis points, says de la Durantaye. “So there’s still marginal room to lower interest rates in Canada.” But investors would worry if we experience an... Read More |
Financial adviser sentenced to 5 years for bilking disabled woman out of inheritance by Mack Chen With a supportive family, and, until three years ago, a father in Upper Arlington who cared for her, she got by working as a grocery-store greeter and other jobs and lived on her own. But two months after Robert Yeamans died, Beaver put her complete tru... Read More |
SEC CHARGES 6 FIRMS FOR SHORT SELLING VIOLATIONS by Mack Chen The Securities and Exchange Commission has announced enforcement actions against six firms, including more than $2.5 million in monetary sanctions and, in the case of one previously sanctioned firm, an order barring the firm from participating in stock off... Read More |
Finra fines six IBDs for failing to give discounts on large REIT sales by Mack Chen Voya Financial Advisors Inc., Transamerica Financial Advisors Inc. and four other independent broker-dealers failed to give clients appropriate discounts on large sales of nontraded real estate investment trusts and business development compa... Read More |
2015 Top 50 DC Plans by Mack Chen So you want to change your DC investment lineup, switch recordkeepers or adjust plan member fees…but you’re worried about how your plan members will react. Going about any change the wrong way can lead to unmet expectations and unhappy members... Read More |
Generation X is likely to be worse off in retirement than the baby boomer generation by Mack Chen Generation X is likely to be worse off in retirement than the baby boomer generation — making the cohort the first post-war generation to be more ill-prepared for retirement than the previous one, according to a new study from J.P. Morgan Asset Manag... Read More |
UBS in $19.5 million setlement over misleading investors by Mack Chen UBS Group AG will pay $19.5 million in a settlement with the Securities and Exchange Commission over claims the bank misled individual investors about the risks tied to debt securities packaged with derivatives. The Swiss bank misrepresented a proprieta... Read More |
Industry minister warns U.S. Steel of court action over pensions by Mack Chen Canada's industry minister has warned that the federal government will take U.S. Steel Canada to court if it does not satisfy its obligations to pensioners. "It is unacceptable that U.S. Steel Canada is abandoning these workers and their famili... Read More |
Canada’s top cities to buy real estate in by Mack Chen 1. Thunder Bay (Ont.) 2. Calgary (Alta.) 3. Barrie (Ont.) 4. Brantford (Ont.) 5. Edmonton (Alta.) 6. Winnipeg (Man.) 7. &nb... Read More |
Your essential RRSP questions answered by Mack Chen 1) What is an RRSP? 2) How much can I contribute to my RRSP this year? 3) When is the contribution deadline? 4) What kind of investments should I hold in my RRSP? 5) Should I change my RRSP investments as I get older? Read More |
What does it mean when Retail Brokerage lets Due Diligence Team GO? by Mack Chen RCS Capital Corp. is cutting expenses and showing the door to the due diligence team at Cetera Financial Group, its retail brokerage unit. Read More Read More |
Pension plans should prepare for low returns by Mack Chen Report authors Steve Ambler and Craig Alexander project a 1% rate of real return for risk-free investments will form an anchor for the returns on other investments including bonds and stocks. Three-month treasury bills currently earn around 0.42%, howev... Read More |
Recession buzz is heating up on Wall Street by Mack Chen Wall Street is getting increasingly nervous about the prospects for recession, both on a global and domestic level. The $73.5 trillion global economy is expected to grow 3.1 percent in 2015 and 3.6 percent in 2016, according to the latest Interna... Read More |
COURT ORDERS CHINESE BANK TO HAND OVER CRIMINAL’S INFO by Mack Chen A New York judge has ordered the Bank of China to hand over detailed information about Chinese bank accounts used by a counterfeiting ring that allegedly sold millions of dollars of fake Gucci handbags and wallets in the U.S. The decision could hav... Read More |
Pension funds to face lower investment returns by Mack Chen In the Canadian context, the impact of an aging population is expected to lower the rate of growth in real income per capita to an average annual pace of between 0.75% and 1.35% over the next couple of decades. Taking the lower end of that range as a floor... Read More |
GLOBAL ECONOMY TO GROW 3%, WHILE CANADA SITS AT 1% by Mack Chen The International Monetary Fund has cut itsgrowth outlook for the Canadian economy to just 1% for the year, due to the drop in oil prices and reduced investment in the energy sector. This forecast, issued Tuesday, is down from the IMF&rsq... Read More |
Why the TPP is such a big—and good—deal for Canada by Mack Chen Yes, there will be costs. But on average, we can expect TPP trade liberalization to deliver higher productivity, higher GDP, and higher incomes to Canadians The TPP will lower tariffs as well as lower non-tariff technical barriers almost across the boar... Read More |
Tips when investing in rental property by Mack Chen When markets are down, you can hold with little risk, as long as your carrying costs are manageable. When markets rise, you can make solid returns. Still, there are considerations, especially if you intend to rent out the property. To get approved for a... Read More |
ETFs having a tough year after roaring 2014 by Mack Chen At this time last year, 66% of ETFs were up. The recent selloff in the biotech sector has also erased names from the leaderboard, and now just seven ETFs have returns above 10% for the year. Last year it was 114 ETFs. A look at the five best performers ... Read More |
What do investors really want? by Mack Chen • 83% say it’s important for their advisors to help them stay calm when markets drop. • 92% want help maintaining a long-term investment perspective. • 80% want an ongoing underst... Read More |
SEC HALTS AMBER MINE PYRAMID SCHEME by Mack Chen SEC has filed fraud charges and obtained asset freezes against a worldwide pyramid scheme that falsely promised investors would profit from a venture backed by the company’s massive amber holdings. California resident Steve Chen and 13 California-... Read More |
J.C. Penney to reduce pension obligation by Mack Chen J. C. Penney says it will reduce its US$5 billion pension benefit obligation by up to 35% without requiring any cash contributions from the company. The retailer has recently completed a lump-sum offer for select participants in its pension plan and als... Read More |
Employees prefer benefits to higher salaries by Mack Chen The majority of American employees (79%) would prefer new or additional benefits or perks to a pay increase, according to the the Glassdoor Q3 2015 U.S. Employment Confidence Survey. Specifically, looking at the 79% of employees who reported they want ... Read More |
Tough summer for pension plans by Mack Chen The health of Canadian pension plans declined sharply in the third quarter due to market volatility and declining bond yields, reports from Aon and Mercer say. The median solvency ratio was 87.6% on Sept. 24, a 5.3 percentage point decrease from the pre... Read More |
QPP offers lessons for ORPP by Mack Chen The underfunding the QPP saw during its early years offers lessons for the upcoming Ontario Retirement Pension Plan (ORPP)—as well as for a potentially expanded version of the CPP, argues a new C.D. Howe Institute report. Read More Read More |
Mystery shopping catches some advisors off-guard by Mack Chen A mystery shop of advisors across Ontario between July and November 2014. The review didn’t find any serious misconduct, but of shops that made recommendations, 14% made unsuitable ones, 21% did not conduct thorough KYC and 29% didn’t discuss f... Read More |
Morgan Stanley Wealth Management has been hit with a suit by Mack Chen Morgan Stanley Wealth Management has been hit with a suit from an African-American financial adviser who accuses the company of racial discrimination, including making changes last month to its internal arbitration policy to prohibit employees from publicl... Read More |
B.C. introduces new pension standards by Mack Chen The British Columbia government is announcing new standards for workplace pension plans, creating options that could be activated even before an employee retires. The province says modernized standards will improve security and options for more than 900... Read More |
Canadian seniors outnumber kids for first time ever by Mack Chen Canada’s seniors have edged out the number of children under the age of 14, according to the latest population figures that experts say contain further evidence of a long-projected shift in the country’s demographic makeup. The latest round ... Read More |
MFDA FINES 3 REPS OVER PRE-SIGNED ACCOUNT FORMS by Mack Chen A settlement hearing in the matter of Neil Rutley was held on September 24, 2015, at which the hearing panel approved the settlement agreement between Staff of the MFDA and Rutley, as a consequence of which Rutley: has paid a fine in the amount of $10... Read More |
Workers not discussing the financial impacts of becoming disabled by Mack Chen 67% of employees aren’t discussing the financial impacts of becoming disabled. 95% of working Canadians agree that a disability could happen at any time. Read More Read More |
The OSC recently restricted fund companies’ ability to use industry awards in their advertisements. This news was largely unexpected and has been met with criticism by the industry by Mack Chen The OSC recently restricted fund companies’ ability to use industry awards in their advertisements. This news was largely unexpected and has been met with criticism by the industry. Ostensibly, the rule regarding advertising performance ratings is... Read More |
SEC seeks to prevent damage from runs on mutual funds, ETFs by Mack Chen The Securities and Exchange Commission proposed rules Tuesday to help ensure that mutual funds and exchange-traded funds can redeem shares when investors want to exit during times of market turmoil. Read More Read More |
Post-mortem planning - to reduce the overall tax liability for the estate and its beneficiaries by Mack Chen Depending on the circumstances, an executor may be entitled to file certain elective tax returns. For instance, if the deceased had earned income from what are known as “rights or things,” the executor can choose to report this income on separa... Read More |
The SEC has charged six men, including a father and three sons by Mack Chen The SEC’s complaint, filed in U.S. District Court in Manhattan, charges John Galanis, his sons Jason Galanis, Derek Galanis, and Jared Galanis, along with Gerova president and chairman Gary T. Hirst and investment adviser Gavin Hamels. John Galanis h... Read More |
7 retirement blind spots by Mack Chen 1. Down market - holding enough cash and bonds 2. Up, up and away - 65-year-old couple will need $220,000 to cover health-care expenses 3. Inflation - 4% "rule" factor in the role of inflation 4. Taxes - owe ordinary in... Read More |
NO RECESSION IN CANADA? Really? by Mack Chen Calgary, the white-collar heart of the oil patch, has seen scores of layoffs in recent months, and Calgary is ranked last out of 13 cities when it comes to forecasted real GDP growth in 2015. Read More Read More |
Workers use retirement savings for emergencies by Mack Chen Thirty million Americans tapped their retirement savings for an emergency within the past year. 21 million Americans aren’t saving for retirement at all. Read More Read More |
Own Real Estate Funds? 8 Questions to Ask by Mack Chen For over a decade, direct real estate has gained an increased presence in the portfolios of Canadian pension funds. After the Great Financial Crisis, real estate allocations have increased further for many sponsors as they continue to search for higher ret... Read More |
MUTUAL FUND FEES UNDER FIRE by Mack Chen A report commissioned by the CSA and prepared by The Brondesbury Group calls for an overhaul on how fees are paid on mutual funds. “There is conclusive evidence that commission-based compensation creates problems that must be addressed,” the re... Read More |
Not saving money is top financial stressor by Mack Chen When it comes to money, there is no shortage of financial stressors keeping Canadians up at night even though the majority think they have their financial goals on track. An Ipsos poll conducted on behalf of Interac Association finds 73% of Canadians th... Read More |
Majority of Canadians uncertain about retirement finances by Mack Chen With Canada’s long-cherished retirement safety net seeming less sturdy all the time, a study suggests 56% of Canadians have doubts about their ability to afford the life they want during retirement. The GfK results show Canadian women are slightly... Read More |
Majority of Canadians uncertain about retirement finances by Mack Chen With Canada’s long-cherished retirement safety net seeming less sturdy all the time, a study suggests 56% of Canadians have doubts about their ability to afford the life they want during retirement. The GfK results show Canadian women are slightly... Read More |
Seniors a 'bulls-eye' for scams uncovered by the states by Mack Chen About a quarter of the enforcement actions brought by state securities regulators last year that track victims by age involved alleged scams targeting senior citizens. In a new report, the North American Securities Administrators Association found that ... Read More |
PMAC wants national policy to regulate all advisors by Mack Chen PMAC supports the Ontario government’s recent efforts to address the regulatory gap in the financial space. But the association says it’s just the first step. “We urge the Ontario government to work collaboratively with other provincia... Read More |
IIROC ends CSI monopoly by Mack Chen The Canadian Securities Institute’s (CSI) monopoly on proficiency services for IIROC licensure has come to an end. Read: CSI’s contract expiry provokes heated industry reaction In advance of CSI’s contract expiry in January 2016,... Read More |
10 key principles of an ideal retirement system by Mack Chen Clear objectives A minimum level of funding Cost-effective and attractive default arrangements Administration and investment costs should be disclosed Read More Read More |
Financial adviser who downloaded client data to a home server, some of which ended up on a public website, pleaded guilty by Mack Chen A fired Morgan Stanley financial adviser who downloaded client data to a home server, some of which ended up on a public website, pleaded guilty to accessing the bank's computer network without permission. Galen Marsh transferred confidential inform... Read More |
Canadian employees can expect an average total salary increase of 3% in 2016, that is up from this year’s estimated average salary increase of 2.8%, by Mack Chen Canadian employees can expect an average total salary increase of 3% in 2016, an Aon survey finds. That is up from this year’s estimated average salary increase of 2.8%, and suggests that employers are expecting an improvement in business conditio... Read More |
HOW TO DECLARE PENSION INCOME by Mack Chen 1. Report OAS and GIS. › Enter the taxable pension in Box 18 of your client’s T4A(OAS) Statement of Old Age Security onLine 113 of her return. › Enter the net supplement in Box 21 of&... Read More |
Canadian lawyer and stock promoter John Briner is settling with the SEC on allegations that he orchestrated a mining stock fraud scheme. by Mack Chen Two audit firms, and seven audit professionals have also agreed to settle the SEC charges, which were filed in January alleging that they engaged in sham offerings of stock in 20 purported microcap mining companies. Read More Read More |
Some people have no clue what retirement will look like for them by Mack Chen Here are a few questions to get you thinking about your options. Do you really want to retire? Should you rent or own? Is travel in the cards? Where should you live? Is your retirement plan workable even in a down... Read More |
Leave bond picking to the pros by Mack Chen Diversifying the fixed-income portion of your portfolio means going beyond Government of Canada bonds. But choosing what to buy is tricky business—arguably trickier than picking stocks. That’s because the documents that explain the terms of ... Read More |
Five worst investing mistakes that millennials make by Mack Chen When Christine Nguyen graduated from university with a whopping $35,000 in debt six years ago, investing for retirement was barely a blip on her financial radar. And even if she could afford to invest, the Toronto resident admits she couldn’t tell a ... Read More |
CSA’s plan to enhance fixed income regulation. by Mack Chen The CSA has published for comment CSA Staff Notice 21-315 Next Steps in Regulation and Transparency of the Fixed Income Market, which describes the CSA’s plan to enhance fixed income regulation. The notice sets out the steps CSA staff are taking... Read More |
Employers want to help employees in retirement by Mack Chen Employers are revisiting how they view their retirement programs and how they view their role when active employees become retirees, said Nigel Branker, partner and leader of Morneau Shepell’s DC pension consulting practice in Ontario, at the firm&rs... Read More |
Goldman Sachs goes low cost in bid to attract investors to ETFs by Mack Chen The firm will waive a portion of its management fee and limit expenses for at least the first year of the large-cap version of its so-called ActiveBeta ETFs, according to a regulatory filing Friday. That will make the expense ratio 9 basis points, or $9 in... Read More |
Finra cracks down on 'cockroach' brokers by Mack Chen The Financial Industry Regulatory Authority Inc. barred from the securities industry 10 employees, including the president, of a now defunct New York City-based broker-dealer, Global Arena Capital Corp., where the regulator said brokers were using misleadi... Read More |
Canada ranks among the world’s most economically free regions by Mack Chen The top ten countries of 2015, in descending order, are: Hong Kong; Singapore; New Zealand; Switzerland; United Arab Emirates; Mauritius; Jordan; Ireland; Canada; and the United Kingdom. Read More Read More |
Franklin Templeton posts worst fund outflows in decades by Mack Chen Once a contender for top sales among all mutual fund firms — Franklin Templeton reached third for net sales among mutual fund companies in 1997 — the firm now faces the potential for its first year of outflows since the financial crisis in 2008... Read More |
IIROC suspended the membership of Edgecrest. by Mack Chen Following an expedited hearing held on September 10, 2015 in Toronto, with notice to Edgecrest Capital Corporation, a hearing panel of the Investment Industry Regulatory Organization of Canada suspended the membership of Edgecrest. Read More Read More |
Wall Street exec charged with manipulating stock prices by Mack Chen The founder of a Wall Street firm who lost a recent sexual harassment lawsuit has been arrested on securities fraud charges. Benjamin Wey was arrested Thursday at his Manhattan home. He is the founder and president of New York Global Group, an investmen... Read More |
Half of Canadians are unsure what they can hold in a TFSA. by Mack Chen Despite their lack of knowledge, the majority (80%) have never talked to an advisor about how to make the most of their TFSAs, with half admitting they need advice. Read More Read More |
BANKRATE SETTLING SEC CHARGES OF MANIPULATING RESULTS by Mack Chen Bankrate Inc., an online publisher of widely read consumer-finance data, has agreed to pay a US$15-million fine to settle federal regulators’ charges that it manipulated its financial results to meet Wall Street’s expectations. The SEC annou... Read More |
Firm inflated numbers from at least 2009 to February 2011 to try and lure in clients to their new firm by Mack Chen An adviser and host of a radio show called “Financial Myth Busting” has been busted by the Securities and Exchange Commission for allegedly inflating her firm's assets under management by as much as five times the actual amount and exaggera... Read More |
Vast majority of Canadians are nowhere near reaching their retirement savings goals by Mack Chen The Canadian Payroll Association survey reveals that the vast majority of employees are nowhere near reaching their retirement savings goals, and more than one-third (35%) expect to work longer than they had originally planned five years ago, with their av... Read More |
IIROC FINES BRANCH MANAGER, FIRM OVER SUPERVISION FAILURE by Mack Chen On August 24, 2015, a hearing panel of the Investment Industry Regulatory Organization of Canada accepted a settlement agreement, with sanctions, between IIROC staff, and Brian Douglas Bergen and Leede Financial Markets. Bergen, along with Leede Financi... Read More |
One of Canada’s largest auto insurance providers is working to tailor products for the Uber ridesharing service. by Mack Chen Intact Financial says its intention is to market the products under the Intact and Belairdirect brands. The company is Canada’s largest provider of property and casualty insurance, collecting $7.5 billion in premiums annually through its variou... Read More |
3 CHARGED IN $54M GREEN ENERGY PONZI SCHEME by Mack Chen Three people were charged Thursday with running a $54 million Ponzi scheme built on promises of a green energy technology that would turn trash into fuel and “carbon-negative” housing developments, neither of which were ever fully developed, U.... Read More |
On which planet can people afford to set aside half of what they make in savings? by Mack Chen Bank of Montreal says Canadians should save three to six months’ pay for emergencies like job loss, medical expenses or car repairs. Right. On which planet can people afford to set aside half of what they make in savings? Probably the planet... Read More |
How to raise financially savvy kids by Mack Chen Recently, I overheard my seven-year-old son and his best friend talking about mortgages. “People need a mortgage because they don’t have all the money to buy a house,” he said. “Houses cost a lot of money,” concurred his... Read More |
Sergei Fedorov's ex-manager convicted of fraud by Mack Chen Joseph Zada, Fedorov's ex-financial manager, was charged in 2013 with scamming 28 investors, including Fedorov. Federal documents show that Zada was also found not guilty on one count of making a false statement on a loan. Fedorov ,45... Read More |
The Quebec government will reduce income taxes while increasing the provincial sales tax by about 1%. by Mack Chen Finance Minister Carlos Leitao told reporters today the government would reduce income taxes first before following up with sales tax hike. Leitao says the move is recommended in a report examining Quebec’s taxation policies published in March. ... Read More |
Check your insurance before travelling by Mack Chen Don’t let a dream vacation turn into a financial nightmare. While you can’t always avoid falling ill, you can limit the impact on your wallet. If you haven’t read the fine print in the exclusions and limitations section of your insurance ... Read More |
America’s Incredible Shrinking Stock Market by Mack Chen U.S. industries have lost over 50% of their publicly-traded peers. To put that in perspective, the number of firms listed in the U.S. today is now lower than it was in the early 1970s. And, back then, the U.S. real GDP was just a third of what it is now. ... Read More |
Which credit card is right for you? by Mack Chen MBNA Rewards World Elite Mastercard comes out at #1 in MoneySense ‘s cash-back category. It offers $428.80 back annually based on spending of $2,000 per month. Read More Read More |
SAY GOODBYE TO EMAIL by Mack Chen Yammer is the hidden gem of Microsoft’s business offerings. It lets any-sized business set up private social networks for communicating. Like Facebook, its main screen is a collection of comments, web links and photos. But, unlike Facebook, it has th... Read More |
Pension giant - CalSTRS dumping $20B in stocks by Mack Chen Pension giant CalSTRS ponders dumping $20B in stocks and bonds in favor of alt strategies Read More Read More |
Young workers in target-date funds hit hard by market drop by Mack Chen Young workers who have all their retirement funds tied up in long-range target-date funds may have been the hardest hit. The average 25-year-old fully invested in a 2060 target-date fund series saw a 10 percent decline in account value from the market&r... Read More |
Investors in UBS's Puerto Rico closed-end funds have filed more than $1.1 billion of claims by Mack Chen Investors in UBS's Puerto Rico closed-end funds have filed more than $1.1 billion of claims, the Zurich-based bank said in a July 28 filing. Investors have alleged that UBS steered customers into risky funds that invested mostly in securities issued by... Read More |
CFP Board sanctions two planners for improper use of 'fee-only' label by Mack Chen The Certified Financial Planner Board of Standards Inc. has punished two more planners for inaccurately calling themselves fee-only advisers. In a list of disciplinary actions released Friday, the CFP Board said it sent letters of admonition to Garrett ... Read More |
The 2015 Workplace Benefits Awards finalists by Mack Chen Absence Management Award Cineplex Entertainment PepsiCo Canada Providence Health Care Benefits Plan Communications Award ABB Canada Canadian Standards Association (CSA Group) Chemtrade Logistics Read: Adopt a no-s... Read More |
The two stocks down 70 percent in a year by Mack Chen Two stocks that have gotten hit hard are now down more than 70 percent over the past year, making them the worst performers in the S&P 500: Freeport-McMoRan and Chesapeake Energy Read more Read More |
Many Canadians living paycheque to paycheque by Mack Chen However, 24% of respondents say they had hardly anything set aside and more than half (56%), reported having less than $10,000 in emergency funds. Read more Read More |
Canada officially in a recession by Mack Chen Canada’s economy recoiled for the second-straight quarter of 2015, knocking the country backwards into a technical definition of recession, Statistics Canada data reveal Tuesday. The federal agency says real GDP contracted at an annual pace of 0.5... Read More |
The Investment Industry Association of Canada (IIAC) questions whether a CPP supplement is needed by Mack Chen The Investment Industry Association of Canada (IIAC) questions whether a CPP supplement is needed, given the saving options already available to investors. In a release, it says, “It may not even make sense [since] voluntary supplemental pension p... Read More |
Long-term care worries aging Canadians by Mack Chen the greatest healthcare-related aging concerns include: losing the ability to live independently (40%); not having enough money to pay for adequate health care (17%); and not being able to afford to remain in their own homes throughout their lifetimes (15%... Read More |
Inflation’s impact on retirement savings by Mack Chen Inflation is a big worry for most people heading into retirement, and for good reason: it eats away at the purchasing power of your savings. But the problem’s worse than you may realize. One of the Bank of Canada’s preferred measures of infl... Read More |
Where the rich Canadians live, and how they spend their millions by Mack Chen Canada’s wealthy aren’t just clustered in downtown Toronto, along the water in Vancouver, or in Calgary’s suburbs. Some of the country’s toniest areas are in Halifax, Winnipeg and Montreal. Read more Read More |
MORTGAGE BROKERS IN SPOTLIGHT AFTER FRAUD ALLEGATION by Mack Chen Some of Canada’s biggest banks are defending their verification practices for mortgage applications in light of recent news that mortgage lender Home Capital Group Inc. cut ties with dozens of brokers over fraud allegations. A number of mortgage b... Read More |
Strong equity returns of the past unlikely to continue by Mack Chen The forecast for global growth has yet again been downgraded, this time by the International Monetary Fund (IMF) to 3.3%, the slowest pace of growth since the global economy shrank during the recession in 2009. This downgrade by the IMF includes the Canadi... Read More |
4 ways to improve Canadian healthcare by Mack Chen Healthcare is the purview of the provinces in Canada, but health leadership—setting big-picture goals, helping achieve best practices across the country and providing long-term, sustainable funding models—is the role of the federal government. ... Read More |
Dividend investing in international markets by Mack Chen Dividend strategies have gained a foothold with equity investors seeking outperformance potential and attractive yield. Please click here for more detail Read More |
Creating value for elder clients by Mack Chen Elder abuse has become a mounting concern in 21st century America. The term is broadly defined as actions or omissions that cause harm or create a serious risk of harm to an older person (generally age 60 or older) by a caregiver, family member, trusted &l... Read More |
How to pay for college by Mack Chen What you need to know about saving and federal student aid. Here for detail... Read More |
solving the couples conundrum by Mack Chen Couples represent 60% of the average adviser's business—but one partner often dominates the adviser relationship. Learn how to build enduring relations with both partners. Read More |
Focus on tax-aware investing by Mack Chen These articles from the Investments & Wealth Monitor focus on tax-aware investing including a look at the trinity of asset location—taxes, returns, and time horizon , tactics and strategies for tax-efficient investing, and an after-tax target f... Read More |
What happened when financial industry veteran looks for an adviser by Mack Chen Today, I recalled my own story after I read this story on Globe and Mail about a financial industry veteran looks for a financial advisor. I asked the following question during a lunch with a group of financial industry veterans when I was w... Read More |