{"id":1151,"date":"2024-01-02T19:32:59","date_gmt":"2024-01-02T19:32:59","guid":{"rendered":"https:\/\/financeify.ca\/?p=1151"},"modified":"2024-01-02T19:32:59","modified_gmt":"2024-01-02T19:32:59","slug":"ific-publishes-guidelines-for-fund-trading","status":"publish","type":"post","link":"https:\/\/financeify.ca\/index.php\/2024\/01\/02\/ific-publishes-guidelines-for-fund-trading\/","title":{"rendered":"IFIC publishes guidelines for fund trading"},"content":{"rendered":"
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  • IFIC responds to rumors of OSC allegations<\/u><\/font> <\/font>\n\n<\/li>
  • The industry reacts to allegations about investment funds<\/u><\/font> <\/font>\n\n<\/li>
  • Brown: The fund’s problems are not systemic<\/u><\/font> <\/font> <\/li><\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

    \u201cIt would be the advisor’s responsibility to warn the client about possible sanctions that the manager may apply when he identifies transactions that he considers inappropriate,\u201d says IFIC vice president John Murray. \u201cAll clients’ prospectuses now say what they will do if they detect inappropriate transactions. There may be opportunities if the advisor feels it is worth the client’s risk and paying the 2% fee.\u201d<\/p>\n\n\n

    The Ontario Securities Commission is said to be close to releasing the results of its own investigation into fund trading practices. Chairman David Brown warned that some fund companies could face investigation. The IFIC report is seen by some as a pre-emptive move intended to blunt the impact on investor confidence. <\/p>\n\n\n

    \u201cThe regulator sees this as the responsibility of the fund manager who is the victim,\u201d says Murray. \u201cThe real weakness today is that there is no obligation on the dealer side not to facilitate this type of activity. I know the MFDA and IDA are looking at this.\u201d <\/p>\n\n\n

    Submitted by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com <\/i><\/p>\n\n\n

    (25\/08\/04)<\/i><\/p>\n\n<\/div>

    \n\n\n
    <\/div><\/div>\n\n\n\n
    <\/div><\/div>\n\n\n\n \n
    <\/div><\/div>\n<\/div>\r\n
    \n<\/td>\n<\/tr>\n\n\n\n
  • IFIC responds to rumors of OSC allegations<\/u><\/font> <\/font>\n\n<\/li>
  • The industry reacts to allegations about investment funds<\/u><\/font> <\/font>\n\n<\/li>
  • Brown: The fund’s problems are not systemic<\/u><\/font> <\/font> <\/li><\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

    \u201cIt would be the advisor’s responsibility to warn the client about possible sanctions that the manager may apply when he identifies transactions that he considers inappropriate,\u201d says IFIC vice president John Murray. \u201cAll clients’ prospectuses now say what they will do if they detect inappropriate transactions. There may be opportunities if the advisor feels it is worth the client’s risk and paying the 2% fee.\u201d<\/p>\n\n\n

    The Ontario Securities Commission is said to be close to releasing the results of its own investigation into fund trading practices. Chairman David Brown warned that some fund companies could face investigation. The IFIC report is seen by some as a pre-emptive move intended to blunt the impact on investor confidence. <\/p>\n\n\n

    \u201cThe regulator sees this as the responsibility of the fund manager who is the victim,\u201d says Murray. \u201cThe real weakness today is that there is no obligation on the dealer side not to facilitate this type of activity. I know the MFDA and IDA are looking at this.\u201d <\/p>\n\n\n

    Submitted by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com <\/i><\/p>\n\n\n

    (25\/08\/04)<\/i><\/p>\n\n<\/div>

    \n\n\n
    <\/div>\n\n\n\n
    <\/div>\n\n\n\n \n
    <\/div>\n<\/div>\r\n
    \n
  • mandatory deterrent fees for improper short-term trading\n\n<\/li>
  • valuation at fair value\n\n<\/li>
  • limiting future purchases in customer accounts when market timing or inappropriate short-term trading is identified. <\/li><\/ul>\n\n\n

    \u201cIt is important to provide fund managers with the flexibility necessary to protect the interests of unitholders,\u201d says Hockin. \u201cBy using one or more of these tools, IFIC has confidence that fund managers can effectively deter or prevent market timing and inappropriate short-term trading.\u201d<\/p>\n\n\n

    The report maintains that market timing is relatively rare in Canada, partly because of the FundServ system, but also because most foreign investments are held by funds indirectly, often using American Depository Receipts, which are traded on U.S. exchanges and therefore, they do not provide opportunities for zonal arbitration. <\/p>\n\n\n

    Hockin acknowledges that there have been cases of short-term trading abuses, which IFIC carefully distinguishes from legitimate short-term trading practices, but says the problem has declined rapidly since U.S. investigations began in 2003. <\/p>\n\n\n

    And while IFIC does not have the authority to enforce the report’s recommendations, Hockin argues that IFIC exercises moral authority over its members. Additionally, the recommendations did not come from IFIC staff but from a working group that included industry representatives. <\/p>\n\n\n

    Of course, IFIC cannot extend its moral suasion beyond its own membership, so the report’s recommendations do not extend to other products such as hedge funds or segregated funds. Murray points out that voluntary compliance also depends on individual investors and their advisors.<\/p>\n\n\n

    \n \n\n\n
    \n\n

    R<\/font>excited N<\/font>possibly S<\/font>Tories<\/font><\/b><\/font><\/p>\n\n<\/td>\n<\/tr>\n

    \n\n
  • IFIC responds to rumors of OSC allegations<\/u><\/font> <\/font>\n\n<\/li>
  • The industry reacts to allegations about investment funds<\/u><\/font> <\/font>\n\n<\/li>
  • Brown: The fund’s problems are not systemic<\/u><\/font> <\/font> <\/li><\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

    \u201cIt would be the advisor’s responsibility to warn the client about possible sanctions that the manager may apply when he identifies transactions that he considers inappropriate,\u201d says IFIC vice president John Murray. \u201cAll clients’ prospectuses now say what they will do if they detect inappropriate transactions. There may be opportunities if the advisor feels it is worth the client’s risk and paying the 2% fee.\u201d<\/p>\n\n\n

    The Ontario Securities Commission is said to be close to releasing the results of its own investigation into fund trading practices. Chairman David Brown warned that some fund companies could face investigation. The IFIC report is seen by some as a pre-emptive move intended to blunt the impact on investor confidence. <\/p>\n\n\n

    \u201cThe regulator sees this as the responsibility of the fund manager who is the victim,\u201d says Murray. \u201cThe real weakness today is that there is no obligation on the dealer side not to facilitate this type of activity. I know the MFDA and IDA are looking at this.\u201d <\/p>\n\n\n

    Submitted by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com <\/i><\/p>\n\n\n

    (25\/08\/04)<\/i><\/p>\n\n<\/div>

    \n\n\n
    <\/div>\n\n\n\n
    <\/div>\n\n\n\n \n
    <\/div>\n<\/div>\r\n
    \n
      \n\n
    • mandatory deterrent fees for improper short-term trading\n\n<\/li>
    • valuation at fair value\n\n<\/li>
    • limiting future purchases in customer accounts when market timing or inappropriate short-term trading is identified. <\/li><\/ul>\n\n\n

      \u201cIt is important to provide fund managers with the flexibility necessary to protect the interests of unitholders,\u201d says Hockin. \u201cBy using one or more of these tools, IFIC has confidence that fund managers can effectively deter or prevent market timing and inappropriate short-term trading.\u201d<\/p>\n\n\n

      The report maintains that market timing is relatively rare in Canada, partly because of the FundServ system, but also because most foreign investments are held by funds indirectly, often using American Depository Receipts, which are traded on U.S. exchanges and therefore, they do not provide opportunities for zonal arbitration. <\/p>\n\n\n

      Hockin acknowledges that there have been cases of short-term trading abuses, which IFIC carefully distinguishes from legitimate short-term trading practices, but says the problem has declined rapidly since U.S. investigations began in 2003. <\/p>\n\n\n

      And while IFIC does not have the authority to enforce the report’s recommendations, Hockin argues that IFIC exercises moral authority over its members. Additionally, the recommendations did not come from IFIC staff but from a working group that included industry representatives. <\/p>\n\n\n

      Of course, IFIC cannot extend its moral suasion beyond its own membership, so the report’s recommendations do not extend to other products such as hedge funds or segregated funds. Murray points out that voluntary compliance also depends on individual investors and their advisors.<\/p>\n\n\n

      \n \n\n\n
      \n\n

      R<\/font>excited N<\/font>possibly S<\/font>Tories<\/font><\/b><\/font><\/p>\n\n<\/td>\n<\/tr>\n

      \n\n
    • IFIC responds to rumors of OSC allegations<\/u><\/font> <\/font>\n\n<\/li>
    • The industry reacts to allegations about investment funds<\/u><\/font> <\/font>\n\n<\/li>
    • Brown: The fund’s problems are not systemic<\/u><\/font> <\/font> <\/li><\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

      \u201cIt would be the advisor’s responsibility to warn the client about possible sanctions that the manager may apply when he identifies transactions that he considers inappropriate,\u201d says IFIC vice president John Murray. \u201cAll clients’ prospectuses now say what they will do if they detect inappropriate transactions. There may be opportunities if the advisor feels it is worth the client’s risk and paying the 2% fee.\u201d<\/p>\n\n\n

      The Ontario Securities Commission is said to be close to releasing the results of its own investigation into fund trading practices. Chairman David Brown warned that some fund companies could face investigation. The IFIC report is seen by some as a pre-emptive move intended to blunt the impact on investor confidence. <\/p>\n\n\n

      \u201cThe regulator sees this as the responsibility of the fund manager who is the victim,\u201d says Murray. \u201cThe real weakness today is that there is no obligation on the dealer side not to facilitate this type of activity. I know the MFDA and IDA are looking at this.\u201d <\/p>\n\n\n

      Submitted by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com <\/i><\/p>\n\n\n

      (25\/08\/04)<\/i><\/p>\n\n<\/div>

      \n\n\n
      <\/div>\n\n\n\n
      <\/div>\n\n\n\n \n
      <\/div>\n<\/div>\r\n
      \n\n
        \n\n
      • mandatory deterrent fees for improper short-term trading\n\n<\/li>
      • valuation at fair value\n\n<\/li>
      • limiting future purchases in customer accounts when market timing or inappropriate short-term trading is identified. <\/li><\/ul>\n\n\n

        \u201cIt is important to provide fund managers with the flexibility necessary to protect the interests of unitholders,\u201d says Hockin. \u201cBy using one or more of these tools, IFIC has confidence that fund managers can effectively deter or prevent market timing and inappropriate short-term trading.\u201d<\/p>\n\n\n

        The report maintains that market timing is relatively rare in Canada, partly because of the FundServ system, but also because most foreign investments are held by funds indirectly, often using American Depository Receipts, which are traded on U.S. exchanges and therefore, they do not provide opportunities for zonal arbitration. <\/p>\n\n\n

        Hockin acknowledges that there have been cases of short-term trading abuses, which IFIC carefully distinguishes from legitimate short-term trading practices, but says the problem has declined rapidly since U.S. investigations began in 2003. <\/p>\n\n\n

        And while IFIC does not have the authority to enforce the report’s recommendations, Hockin argues that IFIC exercises moral authority over its members. Additionally, the recommendations did not come from IFIC staff but from a working group that included industry representatives. <\/p>\n\n\n

        Of course, IFIC cannot extend its moral suasion beyond its own membership, so the report’s recommendations do not extend to other products such as hedge funds or segregated funds. Murray points out that voluntary compliance also depends on individual investors and their advisors.<\/p>\n\n\n

        \n \n\n\n
        \n\n

        R<\/font>excited N<\/font>possibly S<\/font>Tories<\/font><\/b><\/font><\/p>\n\n<\/td>\n<\/tr>\n

        \n\n
      • IFIC responds to rumors of OSC allegations<\/u><\/font> <\/font>\n\n<\/li>
      • The industry reacts to allegations about investment funds<\/u><\/font> <\/font>\n\n<\/li>
      • Brown: The fund’s problems are not systemic<\/u><\/font> <\/font> <\/li><\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

        \u201cIt would be the advisor’s responsibility to warn the client about possible sanctions that the manager may apply when he identifies transactions that he considers inappropriate,\u201d says IFIC vice president John Murray. \u201cAll clients’ prospectuses now say what they will do if they detect inappropriate transactions. There may be opportunities if the advisor feels it is worth the client’s risk and paying the 2% fee.\u201d<\/p>\n\n\n

        The Ontario Securities Commission is said to be close to releasing the results of its own investigation into fund trading practices. Chairman David Brown warned that some fund companies could face investigation. The IFIC report is seen by some as a pre-emptive move intended to blunt the impact on investor confidence. <\/p>\n\n\n

        \u201cThe regulator sees this as the responsibility of the fund manager who is the victim,\u201d says Murray. \u201cThe real weakness today is that there is no obligation on the dealer side not to facilitate this type of activity. I know the MFDA and IDA are looking at this.\u201d <\/p>\n\n\n

        Submitted by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com <\/i><\/p>\n\n\n

        (25\/08\/04)<\/i><\/p>\n\n<\/div>

        \n\n\n
        <\/div>\n\n\n\n
        <\/div>\n\n\n\n \n
        <\/div>\n<\/div>\r\n
        \n
      • IFIC responds to rumors of OSC allegations<\/u><\/font> <\/font>\n\n<\/li>
      • The industry reacts to allegations about investment funds<\/u><\/font> <\/font>\n\n<\/li>
      • Brown: The fund’s problems are not systemic<\/u><\/font> <\/font> <\/li><\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

        \u201cIt would be the advisor’s responsibility to warn the client about the possible sanctions a manager may apply when he identifies transactions that he considers inappropriate,\u201d says IFIC vice president John Murray. \u201cAll clients’ prospectuses now say what they will do if they detect inappropriate transactions. There may be opportunities if the advisor feels it is worth the client’s risk and paying the 2% fee.\u201d<\/p>\n\n\n

        The Ontario Securities Commission is said to be close to releasing the results of its own investigation into fund trading practices. Chairman David Brown warned that some fund companies could face investigation. The IFIC report is seen by some as a pre-emptive move intended to blunt the impact on investor confidence. <\/p>\n\n\n

        \u201cThe regulator sees this as the responsibility of the fund manager who is the victim,\u201d says Murray. \u201cThe real weakness today is that there is no obligation on the dealer side not to facilitate this type of activity. I know the MFDA and IDA are looking at this.\u201d <\/p>\n\n\n

        Submitted by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com <\/i><\/p>\n\n\n

        (25\/08\/04)<\/i><\/p>\n\n<\/div>

        \n\n\n
        <\/div><\/div>\n\n\n\n
        <\/div><\/div>\n\n\n\n \n
        <\/div><\/div>\n<\/div>
        \"\"<\/figure>\n
        \n\n\n
        \"\"<\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

        (August 25, 2004) IFIC issued a series of recommendations to members of the mutual fund industry intended to address potentially abusive trading practices, including market timing and inappropriate short-term trading. <\/p>\n\n\n

        The report was released today after several months of work by a top-level working group that examined short-term trading and market timing, says IFIC chairman Terrence Wright. \u201cWith IFIC members adopting the recommendations contained in this report, Canadian investors should have confidence that procedures are more effective than ever and protect their interests.\u201d <\/p>\n\n\n

        The working group settled on one recommendation, which IFIC President and CEO Tom Hockin calls “non-negotiable.” At a minimum, fund companies should implement “effective and consistent trading monitoring” on a daily basis to detect trading abuses. <\/p>\n\n\n

        \u201cThe entire working committee process reinforced our belief that there is no single magic bullet that will work to solve the market timing problem,\u201d Hockin says. \u201cOur ongoing goal is to identify this type of trafficking and eliminate it.\u201d <\/p>\n\n\n

        In addition to this general recommendation, IFIC suggests its member companies adopt at least one of the following tools to address trade abuses when detected: <\/p>\n\n\n

          \n\n
        • mandatory deterrent fees for improper short-term trading\n\n<\/li>
        • valuation at fair value\n\n<\/li>
        • limiting future purchases in customer accounts when market timing or inappropriate short-term trading is identified. <\/li><\/ul>\n\n\n

          \u201cIt is important to provide fund managers with the flexibility necessary to protect the interests of unitholders,\u201d says Hockin. \u201cBy using one or more of these tools, IFIC has confidence that fund managers can effectively deter or prevent market timing and inappropriate short-term trading.\u201d<\/p>\n\n\n

          The report maintains that market timing is relatively rare in Canada, partly because of the FundServ system, but also because most foreign investments are held by funds indirectly, often using American Depository Receipts, which are traded on U.S. exchanges and therefore, they do not provide opportunities for zonal arbitration. <\/p>\n\n\n

          Hockin acknowledges that there have been cases of short-term trading abuses, which IFIC carefully distinguishes from legitimate short-term trading practices, but says the problem has declined rapidly since U.S. investigations began in 2003. <\/p>\n\n\n

          And while IFIC does not have the authority to enforce the report’s recommendations, Hockin argues that IFIC exercises moral authority over its members. Additionally, the recommendations did not come from IFIC staff but from a working group that included industry representatives. <\/p>\n\n\n

          Of course, IFIC cannot extend its moral suasion beyond its own membership, so the report’s recommendations do not extend to other products such as hedge funds or segregated funds. Murray points out that voluntary compliance also depends on individual investors and their advisors.<\/p>\n\n\n

          \n \n\n\n\n
          \n\n

          R<\/font>excited N<\/font>possibly S<\/font>Tories<\/font><\/b><\/font><\/p>\n\n<\/td>\n<\/tr>\n

          \n\n
        • IFIC responds to rumors of OSC allegations<\/u><\/font> <\/font>\n\n<\/li>
        • The industry reacts to allegations about investment funds<\/u><\/font> <\/font>\n\n<\/li>
        • Brown: The fund’s problems are not systemic<\/u><\/font> <\/font> <\/li><\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

          \u201cIt would be the advisor’s responsibility to warn the client about possible sanctions that the manager may apply when he identifies transactions that he considers inappropriate,\u201d says IFIC vice president John Murray. \u201cAll clients’ prospectuses now say what they will do if they detect inappropriate transactions. There may be opportunities if the advisor feels it is worth the client’s risk and paying the 2% fee.\u201d<\/p>\n\n\n

          The Ontario Securities Commission is said to be close to releasing the results of its own investigation into fund trading practices. Chairman David Brown warned that some fund companies could face investigation. The IFIC report is seen by some as a pre-emptive move intended to blunt the impact on investor confidence. <\/p>\n\n\n

          \u201cThe regulator sees this as the responsibility of the fund manager who is the victim,\u201d says Murray. \u201cThe real weakness today is that there is no obligation on the dealer side not to facilitate this type of activity. I know the MFDA and IDA are looking at this.\u201d <\/p>\n\n\n

          Submitted by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com <\/i><\/p>\n\n\n

          (25\/08\/04)<\/i><\/p>\n\n<\/div>

          \n\n\n
          <\/div>\n\n\n\n
          <\/div>\n\n\n\n \n
          <\/div>\n<\/div>\r\n
          \n<\/td>\n<\/tr>\n
          • \n\n
        • IFIC responds to rumors of OSC allegations<\/u><\/font> <\/font>\n\n<\/li>
        • The industry reacts to allegations about investment funds<\/u><\/font> <\/font>\n\n<\/li>
        • Brown: The fund’s problems are not systemic<\/u><\/font> <\/font> <\/li><\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

          \u201cIt would be the advisor’s responsibility to warn the client about the possible sanctions a manager may apply when he identifies transactions that he considers inappropriate,\u201d says IFIC vice president John Murray. \u201cAll clients’ prospectuses now say what they will do if they detect inappropriate transactions. There may be opportunities if the advisor feels it is worth the client’s risk and paying the 2% fee.\u201d<\/p>\n\n\n

          The Ontario Securities Commission is said to be close to releasing the results of its own investigation into fund trading practices. Chairman David Brown warned that some fund companies could face investigation. The IFIC report is seen by some as a pre-emptive move intended to blunt the impact on investor confidence. <\/p>\n\n\n

          \u201cThe regulator sees this as the responsibility of the fund manager who is the victim,\u201d says Murray. \u201cThe real weakness today is that there is no obligation on the dealer side not to facilitate this type of activity. I know the MFDA and IDA are looking at this.\u201d <\/p>\n\n\n

          Submitted by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com <\/i><\/p>\n\n\n

          (25\/08\/04)<\/i><\/p>\n\n<\/div>

          \n\n\n
          <\/div>\n\n\n\n
          <\/div>\n\n\n\n \n
          <\/div>\n<\/div>
          \n
          \n\n\n
          \"\"<\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

          (August 25, 2004) IFIC issued a series of recommendations to members of the mutual fund industry intended to address potentially abusive trading practices, including market timing and inappropriate short-term trading. <\/p>\n\n\n

          The report was released today after several months of work by a top-level working group that examined short-term trading and market timing, says IFIC chairman Terrence Wright. \u201cWith IFIC members adopting the recommendations contained in this report, Canadian investors should have confidence that procedures are more effective than ever and protect their interests.\u201d <\/p>\n\n\n

          The working group settled on one recommendation, which IFIC President and CEO Tom Hockin calls “non-negotiable.” At a minimum, fund companies should implement “effective and consistent trading monitoring” on a daily basis to detect trading abuses. <\/p>\n\n\n

          \u201cThe entire working committee process reinforced our belief that there is no single magic bullet that will work to solve the market timing problem,\u201d Hockin says. \u201cOur ongoing goal is to identify this type of trafficking and eliminate it.\u201d <\/p>\n\n\n

          In addition to this general recommendation, IFIC suggests its member companies adopt at least one of the following tools to address trade abuses when detected: <\/p>\n\n\n

            \n\n
          • mandatory deterrent fees for improper short-term trading\n\n<\/li>
          • valuation at fair value\n\n<\/li>
          • limiting future purchases in customer accounts when market timing or inappropriate short-term trading is identified. <\/li><\/ul>\n\n\n

            \u201cIt is important to provide fund managers with the flexibility necessary to protect the interests of unitholders,\u201d says Hockin. \u201cBy using one or more of these tools, IFIC has confidence that fund managers can effectively deter or prevent market timing and inappropriate short-term trading.\u201d<\/p>\n\n\n

            The report maintains that market timing is relatively rare in Canada, partly because of the FundServ system, but also because most foreign investments are held by funds indirectly, often using American Depository Receipts, which are traded on U.S. exchanges and therefore, they do not provide opportunities for zonal arbitration. <\/p>\n\n\n

            Hockin acknowledges that there have been cases of short-term trading abuses, which IFIC carefully distinguishes from legitimate short-term trading practices, but says the problem has declined rapidly since U.S. investigations began in 2003. <\/p>\n\n\n

            And while IFIC does not have the authority to enforce the report’s recommendations, Hockin argues that IFIC exercises moral authority over its members. Additionally, the recommendations did not come from IFIC staff but from a working group that included industry representatives. <\/p>\n\n\n

            Of course, IFIC cannot extend its moral suasion beyond its own membership, so the report’s recommendations do not extend to other products such as hedge funds or segregated funds. Murray points out that voluntary compliance also depends on individual investors and their advisors.<\/p>\n\n\n

            \n \n\n\n
            \n\n

            R<\/font>excited N<\/font>possibly S<\/font>Tories<\/font><\/b><\/font><\/p>\n\n<\/td>\n<\/tr>\n

            \n\n
          • IFIC responds to rumors of OSC allegations<\/u><\/font> <\/font>\n\n<\/li>
          • The industry reacts to allegations about investment funds<\/u><\/font> <\/font>\n\n<\/li>
          • Brown: The fund’s problems are not systemic<\/u><\/font> <\/font> <\/li><\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

            \u201cIt would be the advisor’s responsibility to warn the client about possible sanctions that the manager may apply when he identifies transactions that he considers inappropriate,\u201d says IFIC vice president John Murray. \u201cAll clients’ prospectuses now say what they will do if they detect inappropriate transactions. There may be opportunities if the advisor feels it is worth the client’s risk and paying the 2% fee.\u201d<\/p>\n\n\n

            The Ontario Securities Commission is said to be close to releasing the results of its own investigation into fund trading practices. Chairman David Brown warned that some fund companies could face investigation. The IFIC report is seen by some as a pre-emptive move intended to blunt the impact on investor confidence. <\/p>\n\n\n

            \u201cThe regulator sees this as the responsibility of the fund manager who is the victim,\u201d says Murray. \u201cThe real weakness today is that there is no obligation on the dealer side not to facilitate this type of activity. I know the MFDA and IDA are looking at this.\u201d <\/p>\n\n\n

            Submitted by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com <\/i><\/p>\n\n\n

            (25\/08\/04)<\/i><\/p>\n\n<\/div>

            \n\n\n
            <\/div>\n\n\n\n
            <\/div>\n\n\n\n \n
            <\/div>\n<\/div>\r\n
            \n
          • mandatory deterrent fees for improper short-term trading\n\n<\/li>
          • valuation at fair value\n\n<\/li>
          • limiting future purchases in customer accounts when market timing or inappropriate short-term trading is identified. <\/li><\/ul>\n\n\n

            \u201cIt is important to provide fund managers with the flexibility necessary to protect the interests of unitholders,\u201d says Hockin. \u201cBy using one or more of these tools, IFIC has confidence that fund managers can effectively deter or prevent market timing and inappropriate short-term trading.\u201d<\/p>\n\n\n

            The report maintains that market timing is relatively rare in Canada, partly because of the FundServ system, but also because most foreign investments are held by funds indirectly, often using American Depository Receipts, which are traded on U.S. exchanges and therefore, they do not provide opportunities for zonal arbitration. <\/p>\n\n\n

            Hockin acknowledges that there have been cases of short-term trading abuses, which IFIC carefully distinguishes from legitimate short-term trading practices, but says the problem has declined rapidly since U.S. investigations began in 2003. <\/p>\n\n\n

            And while IFIC does not have the authority to enforce the report’s recommendations, Hockin argues that IFIC exercises moral authority over its members. Additionally, the recommendations did not come from IFIC staff but from a working group that included industry representatives. <\/p>\n\n\n

            Of course, IFIC cannot extend its moral suasion beyond its own membership, so the report’s recommendations do not extend to other products such as hedge funds or segregated funds. Murray points out that voluntary compliance also depends on individual investors and their advisors.<\/p>\n\n\n

            \n \n\n\n
            \n\n

            R<\/font>excited N<\/font>possibly S<\/font>Tories<\/font><\/b><\/font><\/p>\n\n<\/td>\n<\/tr>\n

            \n\n
          • IFIC responds to rumors of OSC allegations<\/u><\/font> <\/font>\n\n<\/li>
          • The industry reacts to allegations about investment funds<\/u><\/font> <\/font>\n\n<\/li>
          • Brown: The fund’s problems are not systemic<\/u><\/font> <\/font> <\/li><\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

            \u201cIt would be the advisor’s responsibility to warn the client about the possible sanctions a manager may apply when he identifies transactions that he considers inappropriate,\u201d says IFIC vice president John Murray. \u201cAll clients’ prospectuses now say what they will do if they detect inappropriate transactions. There may be opportunities if the advisor feels it is worth the client’s risk and paying the 2% fee.\u201d<\/p>\n\n\n

            The Ontario Securities Commission is said to be close to releasing the results of its own investigation into fund trading practices. Chairman David Brown warned that some fund companies could face investigation. The IFIC report is seen by some as a pre-emptive move intended to blunt the impact on investor confidence. <\/p>\n\n\n

            \u201cThe regulator sees this as the responsibility of the fund manager who is the victim,\u201d says Murray. \u201cThe real weakness today is that there is no obligation on the dealer side not to facilitate this type of activity. I know the MFDA and IDA are looking at this.\u201d <\/p>\n\n\n

            Submitted by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com <\/i><\/p>\n\n\n

            (25\/08\/04)<\/i><\/p>\n\n<\/div>

            \n\n\n
            <\/div>\n\n\n\n
            <\/div>\n\n\n\n \n
            <\/div>\n<\/div>
            \n
            \n\n\n
            \"\"<\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

            (August 25, 2004) IFIC issued a series of recommendations to members of the mutual fund industry intended to address potentially abusive trading practices, including market timing and inappropriate short-term trading. <\/p>\n\n\n

            The report was released today after several months of work by a top-level working group that examined short-term trading and market timing, says IFIC chairman Terrence Wright. \u201cWith IFIC members adopting the recommendations contained in this report, Canadian investors should have confidence that procedures are more effective than ever and protect their interests.\u201d <\/p>\n\n\n

            The working group settled on one recommendation, which IFIC President and CEO Tom Hockin calls “non-negotiable.” At a minimum, fund companies should implement “effective and consistent trading monitoring” on a daily basis to detect trading abuses. <\/p>\n\n\n

            \u201cThe entire working committee process reinforced our belief that there is no single magic bullet that will work to solve the market timing problem,\u201d Hockin says. \u201cOur ongoing goal is to identify this type of trafficking and eliminate it.\u201d <\/p>\n\n\n

            In addition to this general recommendation, IFIC suggests its member companies adopt at least one of the following tools to address trade abuses when detected: <\/p>\n\n\n

              \n\n
            • mandatory deterrent fees for improper short-term trading\n\n<\/li>
            • valuation at fair value\n\n<\/li>
            • limiting future purchases in customer accounts when market timing or inappropriate short-term trading is identified. <\/li><\/ul>\n\n\n

              \u201cIt is important to provide fund managers with the flexibility necessary to protect the interests of unitholders,\u201d says Hockin. \u201cBy using one or more of these tools, IFIC has confidence that fund managers can effectively deter or prevent market timing and inappropriate short-term trading.\u201d<\/p>\n\n\n

              The report maintains that market timing is relatively rare in Canada, partly because of the FundServ system, but also because most foreign investments are held by funds indirectly, often using American Depository Receipts, which are traded on U.S. exchanges and therefore, they do not provide opportunities for zonal arbitration. <\/p>\n\n\n

              Hockin acknowledges that there have been cases of short-term trading abuses, which IFIC carefully distinguishes from legitimate short-term trading practices, but says the problem has declined rapidly since U.S. investigations began in 2003. <\/p>\n\n\n

              And while IFIC does not have the authority to enforce the report’s recommendations, Hockin argues that IFIC exercises moral authority over its members. Additionally, the recommendations did not come from IFIC staff but from a working group that included industry representatives. <\/p>\n\n\n

              Of course, IFIC cannot extend its moral suasion beyond its own membership, so the report’s recommendations do not extend to other products such as hedge funds or segregated funds. Murray points out that voluntary compliance also depends on individual investors and their advisors.<\/p>\n\n\n

              \n \n\n\n
              \n\n

              R<\/font>excited N<\/font>possibly S<\/font>Tories<\/font><\/b><\/font><\/p>\n\n<\/td>\n<\/tr>\n

              \n\n
            • IFIC responds to rumors of OSC allegations<\/u><\/font> <\/font>\n\n<\/li>
            • The industry reacts to allegations about investment funds<\/u><\/font> <\/font>\n\n<\/li>
            • Brown: The fund’s problems are not systemic<\/u><\/font> <\/font> <\/li><\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

              \u201cIt would be the advisor’s responsibility to warn the client about possible sanctions that the manager may apply when he identifies transactions that he considers inappropriate,\u201d says IFIC vice president John Murray. \u201cAll clients’ prospectuses now say what they will do if they detect inappropriate transactions. There may be opportunities if the advisor feels it is worth the client’s risk and paying the 2% fee.\u201d<\/p>\n\n\n

              The Ontario Securities Commission is said to be close to releasing the results of its own investigation into fund trading practices. Chairman David Brown warned that some fund companies could face investigation. The IFIC report is seen by some as a pre-emptive move intended to blunt the impact on investor confidence. <\/p>\n\n\n

              \u201cThe regulator sees this as the responsibility of the fund manager who is the victim,\u201d says Murray. \u201cThe real weakness today is that there is no obligation on the dealer side not to facilitate this type of activity. I know the MFDA and IDA are looking at this.\u201d <\/p>\n\n\n

              Submitted by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com <\/i><\/p>\n\n\n

              (25\/08\/04)<\/i><\/p>\n\n<\/div>

              \n\n\n
              <\/div>\n\n\n\n
              <\/div>\n\n\n\n \n
              <\/div>\n<\/div>\r\n
              \n
                \n\n
              • mandatory deterrent fees for improper short-term trading\n\n<\/li>
              • valuation at fair value\n\n<\/li>
              • limiting future purchases in customer accounts when market timing or inappropriate short-term trading is identified. <\/li><\/ul>\n\n\n

                \u201cIt is important to provide fund managers with the flexibility necessary to protect the interests of unitholders,\u201d says Hockin. \u201cBy using one or more of these tools, IFIC has confidence that fund managers can effectively deter or prevent market timing and inappropriate short-term trading.\u201d<\/p>\n\n\n

                The report maintains that market timing is relatively rare in Canada, partly because of the FundServ system, but also because most foreign investments are held by funds indirectly, often using American Depository Receipts, which are traded on U.S. exchanges and therefore, they do not provide opportunities for zonal arbitration. <\/p>\n\n\n

                Hockin acknowledges that there have been cases of short-term trading abuses, which IFIC carefully distinguishes from legitimate short-term trading practices, but says the problem has declined rapidly since U.S. investigations began in 2003. <\/p>\n\n\n

                And while IFIC does not have the authority to enforce the report’s recommendations, Hockin argues that IFIC exercises moral authority over its members. Additionally, the recommendations did not come from IFIC staff but from a working group that included industry representatives. <\/p>\n\n\n

                Of course, IFIC cannot extend its moral suasion beyond its own membership, so the report’s recommendations do not extend to other products such as hedge funds or segregated funds. Murray points out that voluntary compliance also depends on individual investors and their advisors.<\/p>\n\n\n

                \n \n\n\n
                \n\n

                R<\/font>excited N<\/font>possibly S<\/font>Tories<\/font><\/b><\/font><\/p>\n\n<\/td>\n<\/tr>\n

                \n\n
              • IFIC responds to rumors of OSC allegations<\/u><\/font> <\/font>\n\n<\/li>
              • The industry reacts to allegations about investment funds<\/u><\/font> <\/font>\n\n<\/li>
              • Brown: The fund’s problems are not systemic<\/u><\/font> <\/font> <\/li><\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

                \u201cIt would be the advisor’s responsibility to warn the client about the possible sanctions a manager may apply when he identifies transactions that he considers inappropriate,\u201d says IFIC vice president John Murray. \u201cAll clients’ prospectuses now say what they will do if they detect inappropriate transactions. There may be opportunities if the advisor feels it is worth the client’s risk and paying the 2% fee.\u201d<\/p>\n\n\n

                The Ontario Securities Commission is said to be close to releasing the results of its own investigation into fund trading practices. Chairman David Brown warned that some fund companies could face investigation. The IFIC report is seen by some as a pre-emptive move intended to blunt the impact on investor confidence. <\/p>\n\n\n

                \u201cThe regulator sees this as the responsibility of the fund manager who is the victim,\u201d says Murray. \u201cThe real weakness today is that there is no obligation on the dealer side not to facilitate this type of activity. I know the MFDA and IDA are looking at this.\u201d <\/p>\n\n\n

                Submitted by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com <\/i><\/p>\n\n\n

                (25\/08\/04)<\/i><\/p>\n\n<\/div>

                \n\n\n
                <\/div>\n\n\n\n
                <\/div>\n\n\n\n \n
                <\/div>\n<\/div>
                \n
                \n\n\n
                \"\"<\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

                (August 25, 2004) IFIC issued a series of recommendations to members of the mutual fund industry intended to address potentially abusive trading practices, including market timing and inappropriate short-term trading. <\/p>\n\n\n

                The report was released today after several months of work by a top-level working group that examined short-term trading and market timing, says IFIC chairman Terrence Wright. \u201cWith IFIC members adopting the recommendations contained in this report, Canadian investors should have confidence that procedures are more effective than ever and protect their interests.\u201d <\/p>\n\n\n

                The working group settled on one recommendation, which IFIC President and CEO Tom Hockin calls “non-negotiable.” At a minimum, fund companies should implement “effective and consistent trading monitoring” on a daily basis to detect trading abuses. <\/p>\n\n\n

                \u201cThe entire working committee process reinforced our belief that there is no single magic bullet that will work to solve the market timing problem,\u201d Hockin says. \u201cOur ongoing goal is to identify this type of trafficking and eliminate it.\u201d <\/p>\n\n\n

                In addition to this general recommendation, IFIC suggests its member companies adopt at least one of the following tools to address trade abuses when detected: <\/p>\n\n\n

                  \n\n
                • mandatory deterrent fees for improper short-term trading\n\n<\/li>
                • valuation at fair value\n\n<\/li>
                • limiting future purchases in customer accounts when market timing or inappropriate short-term trading is identified. <\/li><\/ul>\n\n\n

                  \u201cIt is important to provide fund managers with the flexibility necessary to protect the interests of unitholders,\u201d says Hockin. \u201cBy using one or more of these tools, IFIC has confidence that fund managers can effectively deter or prevent market timing and inappropriate short-term trading.\u201d<\/p>\n\n\n

                  The report maintains that market timing is relatively rare in Canada, partly because of the FundServ system, but also because most foreign investments are held by funds indirectly, often using American Depository Receipts, which are traded on U.S. exchanges and therefore, they do not provide opportunities for zonal arbitration. <\/p>\n\n\n

                  Hockin acknowledges that there have been cases of short-term trading abuses, which IFIC carefully distinguishes from legitimate short-term trading practices, but says the problem has declined rapidly since U.S. investigations began in 2003. <\/p>\n\n\n

                  And while IFIC does not have the authority to enforce the report’s recommendations, Hockin argues that IFIC exercises moral authority over its members. Additionally, the recommendations did not come from IFIC staff but from a working group that included industry representatives. <\/p>\n\n\n

                  Of course, IFIC cannot extend its moral suasion beyond its own membership, so the report’s recommendations do not extend to other products such as hedge funds or segregated funds. Murray points out that voluntary compliance also depends on individual investors and their advisors.<\/p>\n\n\n

                  \n \n\n\n
                  \n\n

                  R<\/font>excited N<\/font>possibly S<\/font>Tories<\/font><\/b><\/font><\/p>\n\n<\/td>\n<\/tr>\n

                  \n\n
                • IFIC responds to rumors of OSC allegations<\/u><\/font> <\/font>\n\n<\/li>
                • The industry reacts to allegations about investment funds<\/u><\/font> <\/font>\n\n<\/li>
                • Brown: The fund’s problems are not systemic<\/u><\/font> <\/font> <\/li><\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

                  \u201cIt would be the advisor’s responsibility to warn the client about possible sanctions that the manager may apply when he identifies transactions that he considers inappropriate,\u201d says IFIC vice president John Murray. \u201cAll clients’ prospectuses now say what they will do if they detect inappropriate transactions. There may be opportunities if the advisor feels it is worth the client’s risk and paying the 2% fee.\u201d<\/p>\n\n\n

                  The Ontario Securities Commission is said to be close to releasing the results of its own investigation into fund trading practices. Chairman David Brown warned that some fund companies could face investigation. The IFIC report is seen by some as a pre-emptive move intended to blunt the impact on investor confidence. <\/p>\n\n\n

                  \u201cThe regulator sees this as the responsibility of the fund manager who is the victim,\u201d says Murray. \u201cThe real weakness today is that there is no obligation on the dealer side not to facilitate this type of activity. I know the MFDA and IDA are looking at this.\u201d <\/p>\n\n\n

                  Submitted by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com <\/i><\/p>\n\n\n

                  (25\/08\/04)<\/i><\/p>\n\n<\/div>

                  \n\n\n
                  <\/div>\n\n\n\n
                  <\/div>\n\n\n\n \n
                  <\/div>\n<\/div>\r\n
                  <\/div>
                  \n
                  \n\n\n
                  <\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

                  (August 25, 2004) IFIC issued a series of recommendations to members of the mutual fund industry intended to address potentially abusive trading practices, including market timing and inappropriate short-term trading. <\/p>\n\n\n

                  The report was released today after several months of work by a top-level working group that examined short-term trading and market timing, says IFIC chairman Terrence Wright. \u201cWith IFIC members adopting the recommendations contained in this report, Canadian investors should have confidence that procedures are more effective than ever and protect their interests.\u201d <\/p>\n\n\n

                  The working group settled on one recommendation, which IFIC President and CEO Tom Hockin calls “non-negotiable.” At a minimum, fund companies should implement “effective and consistent trading monitoring” on a daily basis to detect trading abuses. <\/p>\n\n\n

                  \u201cThe entire working committee process reinforced our belief that there is no single magic bullet that will work to solve the market timing problem,\u201d Hockin says. \u201cOur ongoing goal is to identify this type of trafficking and eliminate it.\u201d <\/p>\n\n\n

                  In addition to this general recommendation, IFIC suggests its member companies adopt at least one of the following tools to address trade abuses when detected: <\/p>\n\n\n

                    \n\n
                  • mandatory deterrent fees for improper short-term trading\n\n<\/li>
                  • valuation at fair value\n\n<\/li>
                  • limiting future purchases in customer accounts when market timing or inappropriate short-term trading is identified. <\/li><\/ul>\n\n\n

                    \u201cIt is important to provide fund managers with the flexibility necessary to protect the interests of unitholders,\u201d says Hockin. \u201cBy using one or more of these tools, IFIC has confidence that fund managers can effectively deter or prevent market timing and inappropriate short-term trading.\u201d<\/p>\n\n\n

                    The report maintains that market timing is relatively rare in Canada, partly because of the FundServ system, but also because most foreign investments are held by funds indirectly, often using American Depository Receipts, which are traded on U.S. exchanges and therefore, they do not provide opportunities for zonal arbitration. <\/p>\n\n\n

                    Hockin acknowledges that there have been cases of short-term trading abuses, which IFIC carefully distinguishes from legitimate short-term trading practices, but says the problem has declined rapidly since U.S. investigations began in 2003. <\/p>\n\n\n

                    And while IFIC does not have the authority to enforce the report’s recommendations, Hockin argues that IFIC exercises moral authority over its members. Additionally, the recommendations did not come from IFIC staff but from a working group that included industry representatives. <\/p>\n\n\n

                    Of course, IFIC cannot extend its moral suasion beyond its own membership, so the report’s recommendations do not extend to other products such as hedge funds or segregated funds. Murray points out that voluntary compliance also depends on individual investors and their advisors.<\/p>\n\n\n

                    \n \n\n\n
                    \n\n

                    R<\/font>excited N<\/font>possibly S<\/font>Tories<\/font><\/b><\/font><\/p>\n\n<\/td>\n<\/tr>\n

                    \n\n
                  • IFIC responds to rumors of OSC allegations<\/u><\/font> <\/font>\n\n<\/li>
                  • The industry reacts to allegations about investment funds<\/u><\/font> <\/font>\n\n<\/li>
                  • Brown: The fund’s problems are not systemic<\/u><\/font> <\/font> <\/li><\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

                    \u201cIt would be the advisor’s responsibility to warn the client about the possible sanctions a manager may apply when he identifies transactions that he considers inappropriate,\u201d says IFIC vice president John Murray. \u201cAll clients’ prospectuses now say what they will do if they detect inappropriate transactions. There may be opportunities if the advisor feels it is worth the client’s risk and paying the 2% fee.\u201d<\/p>\n\n\n

                    The Ontario Securities Commission is said to be close to releasing the results of its own investigation into fund trading practices. Chairman David Brown warned that some fund companies could face investigation. The IFIC report is seen by some as a pre-emptive move intended to blunt the impact on investor confidence. <\/p>\n\n\n

                    \u201cThe regulator sees this as the responsibility of the fund manager who is the victim,\u201d says Murray. \u201cThe real weakness today is that there is no obligation on the dealer side not to facilitate this type of activity. I know the MFDA and IDA are looking at this.\u201d <\/p>\n\n\n

                    Submitted by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com <\/i><\/p>\n\n\n

                    (25\/08\/04)<\/i><\/p>\n\n<\/div>

                    \n\n\n
                    <\/div>\n\n\n\n
                    <\/div>\n\n\n\n \n
                    <\/div>\n<\/div>
                    \n
                    \n\n\n
                    \"\"<\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

                    (August 25, 2004) IFIC issued a series of recommendations to members of the mutual fund industry intended to address potentially abusive trading practices, including market timing and inappropriate short-term trading. <\/p>\n\n\n

                    The report was released today after several months of work by a top-level working group that examined short-term trading and market timing, says IFIC chairman Terrence Wright. \u201cWith IFIC members adopting the recommendations contained in this report, Canadian investors should have confidence that procedures are more effective than ever and protect their interests.\u201d <\/p>\n\n\n

                    The working group settled on one recommendation, which IFIC President and CEO Tom Hockin calls “non-negotiable.” At a minimum, fund companies should implement “effective and consistent trading monitoring” on a daily basis to detect trading abuses. <\/p>\n\n\n

                    \u201cThe entire working committee process reinforced our belief that there is no single magic bullet that will work to solve the market timing problem,\u201d Hockin says. \u201cOur ongoing goal is to identify this type of trafficking and eliminate it.\u201d <\/p>\n\n\n

                    In addition to this general recommendation, IFIC suggests its member companies adopt at least one of the following tools to address trade abuses when detected: <\/p>\n\n\n

                      \n\n
                    • mandatory deterrent fees for improper short-term trading\n\n<\/li>
                    • valuation at fair value\n\n<\/li>
                    • limiting future purchases in customer accounts when market timing or inappropriate short-term trading is identified. <\/li><\/ul>\n\n\n

                      \u201cIt is important to provide fund managers with the flexibility necessary to protect the interests of unitholders,\u201d says Hockin. \u201cBy using one or more of these tools, IFIC has confidence that fund managers can effectively deter or prevent market timing and inappropriate short-term trading.\u201d<\/p>\n\n\n

                      The report maintains that market timing is relatively rare in Canada, partly because of the FundServ system, but also because most foreign investments are held by funds indirectly, often using American Depository Receipts, which are traded on U.S. exchanges and therefore, they do not provide opportunities for zonal arbitration. <\/p>\n\n\n

                      Hockin acknowledges that there have been cases of short-term trading abuses, which IFIC carefully distinguishes from legitimate short-term trading practices, but says the problem has declined rapidly since U.S. investigations began in 2003. <\/p>\n\n\n

                      And while IFIC does not have the authority to enforce the report’s recommendations, Hockin argues that IFIC exercises moral authority over its members. Additionally, the recommendations did not come from IFIC staff but from a working group that included industry representatives. <\/p>\n\n\n

                      Of course, IFIC cannot extend its moral suasion beyond its own membership, so the report’s recommendations do not extend to other products such as hedge funds or segregated funds. Murray points out that voluntary compliance also depends on individual investors and their advisors.<\/p>\n\n\n

                      \n \n\n\n
                      \n\n

                      R<\/font>excited N<\/font>possibly S<\/font>Tories<\/font><\/b><\/font><\/p>\n\n<\/td>\n<\/tr>\n

                      \n\n
                    • IFIC responds to rumors of OSC allegations<\/u><\/font> <\/font>\n\n<\/li>
                    • The industry reacts to allegations about investment funds<\/u><\/font> <\/font>\n\n<\/li>
                    • Brown: The fund’s problems are not systemic<\/u><\/font> <\/font> <\/li><\/td>\n<\/tr>\n<\/tbody><\/table>\n<\/figure>\n\n\n

                      \u201cIt would be the advisor’s responsibility to warn the client about possible sanctions that the manager may apply when he identifies transactions that he considers inappropriate,\u201d says IFIC vice president John Murray. \u201cAll clients’ prospectuses now say what they will do if they detect inappropriate transactions. There may be opportunities if the advisor feels it is worth the client’s risk and paying the 2% fee.\u201d<\/p>\n\n\n

                      The Ontario Securities Commission is said to be close to releasing the results of its own investigation into fund trading practices. Chairman David Brown warned that some fund companies could face investigation. The IFIC report is seen by some as a pre-emptive move intended to blunt the impact on investor confidence. <\/p>\n\n\n

                      \u201cThe regulator sees this as the responsibility of the fund manager who is the victim,\u201d says Murray. \u201cThe real weakness today is that there is no obligation on the dealer side not to facilitate this type of activity. I know the MFDA and IDA are looking at this.\u201d <\/p>\n\n\n

                      Submitted by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com <\/i><\/p>\n\n\n

                      (25\/08\/04)<\/i><\/p>\n\n<\/div>

                      \n\n\n
                      <\/div>\n\n\n\n
                      <\/div>\n\n\n\n \n
                      <\/div>\n<\/div>\r\n
                      ","protected":false},"excerpt":{"rendered":"

                      IFIC responds to rumors of OSC allegations mandatory deterrent fees for improper short-term trading mandatory deterrent fees for improper short-term trading valuation at fair value limiting future purchases in customer accounts when market timing or inappropriate short-term trading is identified. \u201cIt is important to provide fund managers with the flexibility necessary to protect the interests […]<\/p>\n","protected":false},"author":1,"featured_media":1152,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[18],"tags":[212,573,498,195,557],"class_list":{"0":"post-1151","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-seg-fund-investments","8":"tag-fund","9":"tag-guidelines","10":"tag-ific","11":"tag-publishes","12":"tag-trading"},"aioseo_notices":[],"yoast_head":"\nIFIC publishes guidelines for fund trading - 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