Former fund salesman banned and fined $500,000

Facebook LinkedIn Twitter Keywords Suitability obligations,  EnforcementCompanies Mutual Fund Dealers Association Share this article and your comments with peers on social media BFI investors plead for firm’s sale A hearing panel of the Mutual Fund Dealers Association of Canada (MFDA) has permanently banned a former fund salesman and ordered him to pay $500,000 penalty for inappropriately promoting leverage and failing to carry out basic suitability assessments for his clients. A hearing panel of the MFDA’s Atlantic regional council ordered the ban, fine and $20,000 in costs against Thomas Arseneau. Mouth mechanic turned market manipulator According to the panel’s decision, Arseneau disputes the allegations, but declined to participate in the hearing, informing the panel in a letter, “I strongly believe that another meeting with you people is not going to change anything; therefore, I am not interested in discussing this matter any further, as your statements and allegations are incorrect and do not reflect what I told you.” Nevertheless, the hearing went ahead, and the panel notes that MFDA counsel pressed to push ahead with it as the case involves, “… leveraging strategies and suitability issues, relatively new issues for the securities industry.” The allegations against Arseneau stem from conduct between 2004 and 2008. He was registered in New Brunswick, Nova Scotia, Ontario and Quebec as a mutual fund salesperson with Investia Financial Services, Inc. (Investia) from 2005 to 2009, at which latter time he was terminated by Investia. He had previously been a mutual fund salesperson with Armstrong Financial Services Inc., which subsequently became Gateway Capital Growth. The panel’s deciison states he moved firms after learning of a leverage strategy being used by an Investia rep, which involved borrowing from certain lenders (B2B Trust and AGF Trust) and investing in return of capital mutual funds, using the monthly distributions to fund the loan payments. According to an MFDA investigator, Arnseneau had almost $13 million in assets under management with 240 clients, only 18 of whom were not using leverage, and 85% of his book was leveraged. The enforcement action relates to complaints from 20 clients, who collectively had approximately $2.15 million in investment loans. The decision notes that, in one case, Arseneau overstated a client’s assets so that she could qualify for the loan, deceiving both the lender and the dealer; which, it concludes represented intentionally dishonest conduct sufficient to sustain one of the charges against him. It also found that Arseneau didn’t do individual suitability assessments, relying on the granting of the loan as evidence of suitability; and that clients didn’t understand the funds they were investing in, or the terms of their loans. “His advice to the complainants was largely that there was no risk in this leveraged investment strategy,” the panel notes. “He may very well have believed that his leverage strategy could not fail and was, indeed a ‘no-brainer’. However, as an approved person in a securities related business, he was obligated to abide scrupulously within the MFDA rules in his dealings with clients.” The panel also found that, “In his enthusiasm for his leverage strategy he failed in all his duties to his clients required by the rules governing his conduct in this regard.” And, it notes that each complainant’s $50,000 investment has fallen between 30% and 40% in value, “the outstanding balances greatly exceed the investment values, and the complainants face great hardship trying to cope with their situation.” In terms of penalties, the panel notes that since this case is among “the first generation of MFDA cases addressing the suitability of leveraging and leveraging strategies”, MFDA staff called for penalties “sufficient to restore confidence in the public, in the capital markets, to show strong disapproval of the respondent’s conduct and to deter others from engaging in similar improper activity.” MFDA staff suggested a fine of between $400,000 and $600,000. The panel chose $500,000, citing the number of claimants, the amounts borrowed, the amount of their losses, the amount of commissions Arseneau received as a result of the misconduct, and the need to deter others “from this type of conduct, so outrageously outside the bounds of the conduct required when promoting borrowing for leveraged investments and the very basic requirements to know-your-client and determinations of suitability.” The panel adds that leveraging itself can be a legitimate strategy, and stresses that its decision is not intended to criticize the use of leveraging in appropriate circumstances. “Rather, this decision relates only to the obligations of approved persons when dealing with clients and establishing leveraging accounts,” it concludes. Related news PwC alleges deleted emails, unusual transactions in Bridging Finance case James Langton read more

Mutual fund sales outpaced ETFs in September

first_img Purpose looks to fill retirement income gap with longevity fund Share this article and your comments with peers on social media BMO InvestorLine launches commission-free trading for ETFs Related news IG Wealth amends product shelf Keywords Mutual funds,  ETFs,  Fund salesCompanies Investment Funds Institute of Canada 22822867 - business chart showing financial success 123RF The upswing is attributed to an increase in long-term fund sales, generating $892 million in net sales after recording $78 million in net redemptions in August. Of that, bond fund sales were almost $2.6 billion, up from $1.5 billion in August, which offset the $2.5 billion in equity fund net redemptions. Conversely, ETF sales cooled to $562 million in total net sales in September, down from $2.6 billion in August. The weakness in ETF net sales came as more than $1 billion flowed out of equity funds after net sales of $2.3 billion the previous month. The influx of $1 billion in bond fund net sales was not enough to offset the equity outpour. Both mutual fund and ETF assets under management (AUM) increased in September. IFIC reports that mutual fund assets totalled $1.58 trillion at the end of the month, representing a 0.7% increase from $1.57 trillion in August. ETF assets grew faster, gaining 1% on August numbers, totalling $187.9 billion at the end of September. Maddie Johnson Mutual funds gained momentum and far outpaced sales of exchange-traded funds (ETFs) in September, according to new data from the Investment Funds Institute of Canada (IFIC). The industry trade group reported that mutual funds recorded $1.3 billion in net sales at the end of September, up from $576 million in August.  Facebook LinkedIn Twitterlast_img read more

Mobile Mix: The 5G Russian Revolution

first_imgHomeFeatured Content Mobile Mix: The 5G Russian Revolution Play Video Powered by THEOplayer 2021.1.3Close Related ContentClose ShareWe’re in Moscow for this week’s Mobile Mix, as Chris gives us a lowdown on the hot topics at this year’s Mobile 360 Eurasia event. In London, Manny was with BT, which introduced convergence play Halo, while Michael has all the headlines. Subscribe to our daily newsletter UnavailableUnavailable Playing onSubtitlesLanguageSettingsQualityAutomatic Automatic HDSpeedNormalQualityAutomaticSpeed0.250.5Normal1.251.52Loaded: 0%0:00Progress: 0%0:00 Progress: 0%PlayPlayMuteMuteCurrent Time 0:00/Duration Time 0:00LiveRemaining Time -0:00 Watch in VRWatch in VRdescriptions off, selectedDescriptionsSubtitlesSubtitlesUnavailable UnavailableLanguageLanguageSettingsHDSettingsFullscreenFullscreenThis is a modal window.Caption Settings DialogBeginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsDefaultsDone AddThis Sharing ButtonsShare to LinkedInLinkedInLinkedInShare to TwitterTwitterTwitterShare to FacebookFacebookFacebookShare to MoreAddThisMore 11 OCT 2019 Previous ArticleChina Telecom, ZTE demo 5G slicing in factoryNext ArticleChina Telecom y ZTE efectúan una demostración de slicing 5G en fábricas Related contentRelated contentShare VideoShare Videolast_img read more

Defending champ Ko leads New Zealand Open by one

first_imgCHRISTCHURCH, New Zealand – Lydia Ko will take a one-stroke lead into the final round of the New Zealand Women’s Open after shooting a 5-under 67 Saturday. The South Korean-born New Zealander, who is defending her national title, started the day in a tie for fifth after an opening 69. On Saturday, she had six birdies and a bogey which moved her one shot ahead of Justine Dreher of France, who shot 70. The 18-year-old Ko had a 36-hole total of 8-under 136 at Clearwater Golf Club in the 54-hole tournament co-sanctioned by the Ladies European Tour and Australian Ladies PGA. Dreher is one shot ahead of Pamela Pretswell (70) of Scotland, while Denmark’s Emily Kristine Pedersen (66) and Nanna Koerstz Madsen (68) are two strokes behind and tied for third. Ko, who holds the course record at Clearwater with a 61, played the front nine Saturday in 4-under 32, then had two birdies and a bogey on her back nine. Ahead by one stroke, she dropped a shot on the par-4 13th at the same time Dreher birdied the par-5 second to move to eight under and a tie for the lead. But Ko reclaimed the lead when she hit her tee shot to seven feet on the par-3 16th and made a birdie putt. ”When you are at the top of the leaderboard, everyone is chasing you, but I would rather be leading than a few shots behind,” Ko said. Dreher, 23, turned professional last year and has only $3,000 in career earnings. ”I am excited and nervous,” Dreher said. ”Just putting next to (Ko) yesterday was a bit new. I am watching and learning from them.” Ko said she expects a tough challenge from Dreher in the final group on Sunday. ”She copes with pressure well,” Ko said. ”If I think about what she is doing then there will be way too much thinking going on.”last_img read more

Odds & Ends: Alex Boniello Releases EP Hi & New Music Video

first_imgAlex Boniello(Photo: Emilio Madrid for Broadway.com) Star Files Here’s a quick roundup of stories you might have missed recently.Alex Boniello Releases EP Hi & New Music VideoBroadway favorite Alex Boniello, whose credits include Deaf West’s Spring Awakening and Dear Evan Hansen, has released an EP called Hi. It is now available to stream on music platforms and includes the tracks “19 to 20,” “If I Died,” “Get Up” and “I’m So Tired.” He has also released a music video for “I’m So Tired,” which was directed by his former Dear Evan Hansen co-star Gabrielle Carrubba. Watch below. Alex Boniellocenter_img View Comments Jagged Little Pill, Slave Play Casting Directors Nominated for Artios AwardsNominations are here for the 36th Annual Artios Awards, honoring casting directors for their work on stage and screen. Among the Broadway nominees are casting directors of Jagged Little Pill, Moulin Rouge! and Tina: The Tina Turner Musical, all honored in the Broadway Musical category. Other nominees on the theater front include Grand Horizons, The Great Society, The Inheritance, Slave Play and The Sound Inside in the Play category, with A Soldier’s Play, Betrayal and The Rose Tattoo in the Play Revival category. Winners willbe announced on April 15 in a virtual ceremony. For a full list of nominees, click here.Keegan-Michael Key to Star in & Executive Produce August Snow DramaKeegan-Michael Key, who was last seen on Broadway in Meteor Shower and can be seen in Netflix’s The Prom movie, is set to executive produce and headline a new ABC drama. According to Deadline, August Snow, which is based on Stephen Mack Jones’ book series, hails from Godfather of Harlem co-creator/executive producer Paul Eckstein, who penned the forthcoming TV show. Key will play the title character a former detective, who becomes a private investigator in his hometown of Detroit.Broadway Alum & Police Academy Star Marion Ramsey Dies at 73Marion Ramsey, who played Officer Laverne Hooks in the film franchise Police Academy died in Los Angeles on January 7 at the age of 73. CNN reports that no cause of death was given. Born in Philadelphia on May 10, 1947, Ramsey made her Broadway debut as a replacement for Ermengarde in the original Broadway production of Hello, Dolly! Her other Broadway credits include Soon, Rachael Lily Rosenbloom and Don’t You Ever Forget It, Eubie!, Rock ‘N Roll! The First 5,000 Years, Grind and Uptown…It’s Hot! A guest role on The Jeffersons kicked off her career in television. She is survived by three brothers.The Prom’s Jo Ellen Pellman Catches Up with Co-Star James CordenJo Ellen Pellman, who stars in Ryan Murphy’s film adaptation of The Prom on Netflix, reunited with one of her co-stars when she appeared on The Late Late Show with James Corden on January 7. Corden played the role of Broadway star Barry Glickman in the film, while Pellman played Emma, who is banned from bringing her girlfriend to the prom. Though COVID-19 shutdowns prevented the stars from an in-person red carpet premiere, Pellman spoke about enjoying the movie at home with her family. “I have just felt an overwhelmingly positive reaction on social media,” she said. “I am getting messages from people sharing their stories or how The Prom made them feel accepted and loved.” She also talked about howt she and co-star Ariana DeBose have started the Unruly Hearts Initiative, which encourages viewers of The Prom to advicate for the LGBTQ+ community. Watch the interview below.last_img read more

BNSF inks Schnabel deal

first_imgTTS/BNSF will manage, maintain and have priority access to the Schnabel railcar, which was originally designed for specific Siemens transformers, but has pin locations that allow for the movement of a wide variety of transformer designs, said BNSF.TTS engineers have also designed adapters that will allow even more transformer designs to be moved using the railcar.In addition to the KWUX 101 railcar, TTS also owns three cabooses, three more Schnabel railcars, and two 12-axle flatcars – all of which are stored in Rincon, Georgia.  www.bnsflogistics.comlast_img

Seniors keep fit and healthy

first_img 1 of 2 Katie Links, 80, has been with the Bluegum Fitness Club since its inception five years ago. Exercising for the mind, body and spirit. That is the motto of the Bluegum Fitness Club in Bonteheuwel, which is celebrating its fifth anniversary. FounderJennifer Grey said she had a vision to start an exercise club for all the women who were at home during the day – with many facing challenges within their families.“Here we can destress, exercise, and socialise. We also have a lot of outings and weekends away,” Ms Grey said. The club has grown from 10 members to 50, and women from the age of 40 have joined up. The group is not only there for the members’ physical health, but also to support one another emotionally and spiritually.Members have transformed one of the store rooms at the Bluegum community centre -where they meet – into a prayer room.“If we have problems or illnesses, we go to the prayer room. And we have members from the Christian and Muslim faiths,” Ms Grey said. Many of the members can share stories of how being part of the club improved their health. Some have chronic illnesses, but have made remarkable improvement that they are even off the medication. Joyce Gouvea said she was so unfit when she joined the club, that she couldn’t even bend. “I have high blood pressure, but since being with the club, it’s all under control now,” Ms Gouvea added. Nawaal Hassiem said an injury left her with “eight screws in my back”, and the exercise has helped her deal with the pain.Doris Cochlan used a walking stick when she joined the club, but she no longer needs it, and Jamiela Davids had hip replacement surgery, but not even that can slow her down. Katie Links, 80, is the club’s oldest member, who has been with the group since its inception. The executive of the club, are, from left, Jean Brooks, Jennifer Grey, Fatima Skippers, Mary Kammies, and Joyce Gouvea.center_img Katie Links, 80, has been with the Bluegum Fitness Club since its inception five years ago.last_img read more

Eversheds Sutherland furloughs staff and creates hardship fund

first_imgInternational firm Eversheds Sutherland has furloughed certain staff members for the next three weeks, and has delayed pay and bonus reviews until the end of October.In a statement released today, the firm said it has accessed government-backed job retention schemes, and has placed individuals ‘who are not able to perform their duties whilst working remotely’ on furlough for the next three weeks. The firm will top up the payment from the government so staff receive their full salary during this time.It has also made the ‘difficult decision’ to delay the review of remuneration and bonus payments until the end of October. Promotion-related pay rises have also been deferred. However, candidates who successfully passed their assessments and interviews will be promoted from 1 May 2020 as planned.Meanwhile, it is expected that partner pay-outs will either be reduced or deferred. For staff who are balancing work and caring responsibilities, Eversheds Sutherland is offering five days of full pay and has also introduced an enhanced holiday scheme which gives an additional day of holiday for every four taken to care for others. A hardship fund has also been set up to help individuals who are particularly impacted by the outbreak. Eversheds Sutherland is one of many firms attempting to mitigate the impact of the coronavirus outbreak. Magic circle firms Allen & Overy and Freshfields have deferred partner pay-outs and suspended pay and bonus reviews, while Norton Rose Fulbright has asked staff to reduced their working week by 20%.  *The Law Society is keeping the coronavirus situation under review and monitoring the advice it receives from the Foreign & Commonwealth Office and Public Health England. Find advice and updates here.center_img Please see the Gazette’s dedicated coronavirus page here >>last_img read more

Regions confirm €7bn framework TER contract

first_imgFRANCE: A framework contract for the supply of up to 1 000 low-floor trainsets to operate regional services was signed in Paris on October 27 by SNCF President Guillaume Pepy and the President of Alstom Transport Philippe Mellier. Within the overall package, orders were confirmed for an initial build of 100 trains which will be delivered from 2013.At a ceremony for regional representatives and invited guests, Pepy emphasised that he was signing the deal on behalf of the Association des Régions de France, a consortium of regional authorities led by Martin Malvey, President of Midi-Pyrénées. SNCF had been co-ordinating a joint tender for the regions over the past two years, he explained, but the individual regions will specify and procure the trains to meet their own requirements.Dubbed Régiolis by Pepy, the articulated TER trainsets are designated Coradia Polyvalent by Alstom. The design is derived from the Coradia Nordic and Coradia Continental families, but adapted to meet French specifications. As well as a high degree of modularity, they will have permanent-magnet motors offering a saving of up to 20% in energy use, according to Mellier.The base design is a dual-voltage EMU for 1∙5 kV DC and 25 kV 50 Hz operation; two other options add 15 kV AC or a diesel hybrid using small roof-mounted engines. Régiolis will be available in three standard lengths – 56 m (three-car), 72 m (four-car) or 110 m (six-car) – with interior configurations to suit suburban, regional or inter-city duties. The suburban option can also be offered with two doorways per car side, as with the Coradia Continental Class 440 units in Germany.The initial order for 100 sets is valued at €800m, with the total contract potentially worth more than €7bn over 10 years; Mellier said he was confident that all the options would be taken up, and ‘maybe more’. Further orders for 35 sets are expected shortly, and discussions have started for another 20.Of the first 135 trains, 25 are destined for Midi-Pyrénées, 22 for Alsace and 22 for Aquitaine. Basse-Normandie is taking 18, Picardie 17, Pays-de-la-Loire 15, Haute-Normandie eight and Lorraine eight. Mellier said around 60% would be diesel hybrids and the rest dual-system electric. Almost all length, interior and traction configurations are covered, he reported, except for the six-car EMU.With up to 1 000 trains to be built over 10 years, the framework contract is expected to safeguard 3 000 jobs at Alstom’s French factories. The trains will be assembled at the former De Dietrich plant in Reichshoffen, with bogies from Le Creusot, electrical equipment from Ornans and Tarbes, and on-board computers from Villeurbanne.last_img read more

Audio: Lee Johnson Pre-Wigan Athletic home press conference

first_imgLee Johnson speaks to the gathered media ahead of his side’s Sky Bet Championship encounter with Wigan Athletic.last_img