BURLINGTON, ON, April 1, 2021 /CNW/ – The Investment Industry Regulatory Organization of Canada (IIROC) has scheduled a hearing to consider whether a Settlement Agreement entered into between IIROC staff and Bonnie Wyatt should be accepted.
The Agreement concerns allegations that Ms. Wyatt failed to comply with her employer’s policies and procedures by facilitating new investment loans for clients. She also failed to ensure that some clients had accurate information on their know your client documentation.
The hearing is not open to the public, but will become open if and when the Panel accepts the agreement. Members of the public who would like to attend the hearing may contact IIROC’s National Hearing Coordinator at NHC1@iiroc.ca in advance of the hearing to obtain further details. If the agreement is accepted, the Reasons for Decision and the Settlement Agreement will be made available at www.iiroc.ca.
Hearing Date: The hearing will be held by videoconference on Friday April 9, 2021 at 10:00 a.m.
IIROC formally initiated the investigation into Ms. Wyatt’s conduct in June 2019. The conduct occurred while she was a Registered Representative with the Burlington branch of Global Maxfin Capital Inc., which is no longer an IIROC-regulated firm. Ms. Wyatt is currently a Registered Representative with Integral Wealth Securities Limited, an IIROC-regulated firm.
The Notice of Motion announcing the settlement hearing is available at: http://www.iiroc.ca/documents/2021/820f4cc5-606f-464a-b7a4-c76a13747403_en.pdf
Documents related to ongoing IIROC enforcement proceedings – including Reasons and Decisions of Hearing Panels – are posted on the IIROC website as they become available. Click here to search and access all IIROC enforcement documents.
IIROC is the pan-Canadian self-regulatory organization that oversees all investment dealers and their trading activity in Canada’s debt and equity markets. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while supporting healthy Canadian capital markets. IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of 175 Canadian investment dealer firms of varying sizes and business models, and their more than 30,000 registered employees. IIROC also sets and enforces market integrity rules regarding trading activity on Canadian debt and equity marketplaces.
IIROC investigates possible misconduct by its member firms and/or individual registrants. It can bring disciplinary proceedings which may result in penalties including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.
All information about disciplinary proceedings relating to current and former member firms is available in the Enforcement section of the IIROC website. Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by IIROC-regulated firms is available free of charge through the IIROC AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1 877 442-4322.
SOURCE Investment Industry Regulatory Organization of Canada (IIROC) – General News
View original content: http://www.newswire.ca/en/releases/archive/April2021/01/c6008.html
Why Canadians are still struggling to understand investment fees – The Globe and Mail
Financial advisory fees remain a confusing subject to the vast majority of Canadian investors despite a decades-long effort by the investment industry and its regulators to provide greater clarity and transparency. That means financial advisors remain in the ideal position to help close that comprehension gap.
According to the results of a survey the Mutual Fund Dealers Association of Canada (MFDA) released in June as part of a more expansive research report, fewer than one in five Canadian investors could identify correctly what types of costs are included in current fee summaries.
“The challenge we have today is that most investors don’t get a full picture of all the fees,” says Jean-Paul Bureaud, executive director of the Canadian Foundation for the Advancement of Investor Rights (FAIR Canada), “they only get a partial picture and they might not appreciate that it’s a partial picture.”
Advisors can clarify that to clients relatively easily by making clear that current fee summaries only include the fees for advice and trailing commissions on mutual funds, he says, and that other costs – such as fund management fees and operational costs – also apply.
Advisors can also ensure investors understand as much as possible by avoiding “using all kinds of fancy terms for all the different types of fees,” Mr. Bureaud says.
In fact, the MFDA’s report states, “Even experienced investors struggle to understand key terms and how their choices influence the type and amount of fees they pay.”
That means even when dealing with sophisticated clients, advisors should not assume “MER” is universally understood to stand for management expense ratio, or what it means. Breaking down jargon such as “trailing commissions” in simple terms – perhaps as an annual fee the advisor receives each year a client holds a particular investment – will also help avoid misunderstandings.
Instead of simply noting what fees are or are not included in existing disclosures, the MFDA report urges advisors to get as close to total cost reporting as possible.
London-based global firm The Behavioural Insights Team ran an experiment on behalf of the MFDA testing four formats of expanded cost reporting. Three of them specified investment fund charges while the fourth, known as the “control” option, included only a disclosure that other charges, such as fund management and operation costs, applied.
Only 23 per cent of investors exposed to the control option were able to identify their total cost of investing correctly, while between 54 per cent and 70 per cent of investors exposed to the other three options were able to do so.
Karen McGuinness, the MFDA’s senior vice president of member regulation and compliance, says part of the reason the experiment succeeded was a focus on using plain language.
“When we did the format, initially, we were using industry terminology because it was just second nature to us, but we brought in the behavioural research firm and they were the ones who said we need to set up this information in a way that’s more easily digestible for the average retail investor,” Ms. McGuinness says.
Nevertheless, the MFDA report warns that dealers and advisors shouldn’t assume sharing more cost information will always lead to better comprehension among clients as they will eventually hit a point of diminishing returns.
Rather, the report recommends they should “eliminate any information presented in the fee summary that is unlikely to be useful to investors. People have limited attention [and] this is especially significant when information is complex.”
To establish a baseline for how much any given client already understands – and therefore how much education advisors should attempt to provide – regulators have developed a number of quick and straightforward tools for that purpose.
For example, the B.C. Securities Commission runs the InvestRight website that includes fee calculators and a short quiz designed to gauge investors’ overall comprehension of investment fees.
“It only takes about five minutes to answer the questions, and a lot of people would be surprised at what they learn,” says FAIR Canada’s Mr. Bureaud.
The Ontario Securities Commission (OSC) operates a similar website – GetSmarterAboutMoney – that offers even more comprehensive tools and resources.
Meanwhile, regulators are working on a new set of disclosure rules to replace the second phase of the customer relationship model (CRM2) that has been in place since 2016. The goal of what’s being called CRM3 is to provide what the MFDA’s Ms. McGuinness calls “total cost reporting,” as it should get disclosures as close as possible to breaking down all the fees investors pay and not just those their advisor receives.
Although there’s no timeline for when CRM3 will be complete, Greg Pollock, president and chief executive of Advocis, says advisors will need to be more transparent with their clients on fees before the current bull market goes bust.
“Investors tend to look at the bottom line, and if they see that year-over-year returns are looking pretty good, they don’t get too focused on the fees simply because they’re satisfied with the overall performance,” he says. “But it does raise the question of what happens in a bear market when performance suffers. That really gets people’s attention.”
As RedBird Capital Eyes SpringHill Investment, LeBron James Continues March Toward Billionaire Status – Forbes
The private equity firm is expected to take a significant minority stake that will likely value the company at between $650 million and $750 million.
LeBron James is one step closer to cashing in on his entertainment business in a deal that would still leave the NBA superstar short of becoming basketball’s second billionaire.
People familiar with the matter say that private equity firm RedBird Capital is in advanced discussions to make a strategic investment in James’ SpringHill Co., an entertainment company that has been the subject of deal rumors since July. The amount of the possible deal, which was first reported by Sportico, could not be determined, although the investment is likely to be done at a valuation of $650 million to $750 million.
The infusion of capital would represent a massive win for James, who continues to expand his off-the-court interests. The 36-year-old Los Angeles Lakers superstar came in as the fifth-highest-paid athlete on the planet on this year’s Forbes list, with earnings of $96.5 million over 12 months. Only Conor McGregor and Roger Federer posted off-the-field totals higher than James’ $65 million. Prior to the SpringHill deal, Forbes estimated James’ net worth to be roughly $850 million. James is the largest single shareholder in SpringHill. Forbes recently valued his stake—believed not to exceed 50%—at approximately $300 million.
James and his childhood friend, Maverick Carter, together built the SpringHill Co., the diversified media company behind the new Space Jam movie, the HBO documentary What’s My Name: Muhammad Ali and unscripted series including the NBC competition show The Wall. The company, named for the apartment complex where James grew up, was founded in 2020 and also includes media platform Uninterrupted, which produces the HBO talk show The Shop, and a marketing agency, the Robot Company, which counts JPMorgan Chase, Beats by Dre and Sprite as clients.
James is chasing Michael Jordan, the only billionaire to have emerged from the sport, although he reached that status after his playing days were over.
RedBird was founded by Gerry Cardinale, a former Goldman Sachs partner with deep ties to Hollywood and the world of professional sports. He has been assembling an expansive portfolio of assets, taking a minority stake earlier this year in Wasserman, a sports marketing and talent agency, and investing $275 million into David Ellison’s Skydance Media, the studio behind the Oscar-winning movie Parasite. It also bought, sold and re-acquired a stake in the YES Network.
The potential SpringHill deal isn’t the first time Cardinale and James have crossed paths. Months ago, RedBird purchased a 10% stake in Fenway Sports Group, which owns a bevy of sports assets including Liverpool FC and the Boston Red Sox. James bought 2% of Liverpool in 2011 and exchanged his stake to grab a reported 1% investment in FSG earlier this year.
Chevron triples low-carbon investment, but avoids 2050 net-zero goals – Reuters
Sept 14 (Reuters) – Chevron Corp (CVX.N) on Tuesday pledged to triple to $10 billion its investments to reduce its carbon emissions footprint through 2028, while saying it was not yet ready to commit to a 2050 net-zero emissions target.
Oil producers globally are under mounting pressure from investors and governments to join the fight against climate change and sharply cut greenhouse gas emissions by mid-century, with U.S. majors lagging efforts by European companies.
Chevron said half of its spending will go to curb emissions from fossil fuel projects. A total of $3 billion will be applied for carbon capture and offsets, $2 billion for greenhouse gas reductions, $3 billion for renewable fuels and $2 billion for hydrogen energy.
Chevron is not ready to commit to net-zero targets. Chief Executive Michael Wirth told investors on Tuesday that the company does not want to “be in a position in which we lay out ambitions that we don’t believe are realistic and deliverable.”
Just a minority of its shareholders currently support a strategy used by European oil companies to invest in less-profitable solar and wind power, he added.
“The board is looking to see, how do you deliver a strategy that meets the needs of shareholders today and the expectations of shareholders for the future?” the CEO said. Directors may re-address a net-zero goal later this year with the company’s climate report, Wirth said.
European oil producers have set plans to shift away from fossil fuels with larger investments in renewables and 2050 emission targets. U.S. oil producers Chevron, Exxon Mobil Corp (XOM.N) and Occidental Petroleum (OXY.N) sought to reduce carbon emissions per unit of output while backing carbon capture and storage, and doubling down on oil.
BP Plc (BP.L) has said it will invest $3 billion-4 billion a year in low-carbon projects by 2025 and shrink oil and gas production by 40% in the next decade. Royal Dutch Shell Plc (RDSa.L) in February set annual investments of $2 billion-3 billion in clean energy.
Chevron maintained its goal of paring greenhouse gas intensity by 35% through 2028 compared to 2016 levels from its oil and gas output.
It said it would expand renewable natural gas production to 40 billion British thermal units (BTUs) per day and increase renewable fuels production capacity to 100,000 barrels a day to meet customer demand for renewable diesel and sustainable aviation fuel.
“We expect to grow our dividend, buy back shares and invest in lower-carbon businesses,” Wirth said.
Chevron aims to increase hydrogen production to 150,000 tonnes a year to supply industrial, power and heavy duty transport customers and raise carbon capture and offsets to 25 million tonnes a year by co-developing regional hubs.
Environmentalists said Chevron’s focus is on offsetting emissions from oil and gas output, not reducing oil output.
“Chevron’s new announcement does not represent a particularly large strategic shift,” said Axel Dalman, an associate analyst with climate change researcher Carbon Tracker. “The main item is that they plan to spend more on ‘lower-carbon’ business lines.”
Reporting by Sabrina Valle in Houston, Arunima Kumar in Bengaluru; additional reporting by Laura Sanicola in New York; Editing by Arun Koyyur, Will Dunham, David Gregorio and Mark Porter
Our Standards: The Thomson Reuters Trust Principles.
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