OSC settles with scholarship plan dealer
The Ontario Securities Commission (OSC) has settled with scholarship plan dealer, Global RESP Corp., fund manager, Global Growth Assets Inc. (GGAI), and the Global Educational Trust Foundation over several disclosure, registration and supervisor failures, the commission reported Wednesday.
Under the agreement, the firms' CEO, Issam El-Bouji, must pay almost $2 million in disgorgement fees; and Bouji, GGAI and Global RESP must pay a $150,000 administrative penalty and costs of $75,000.
Bouji is also permanently suspended as the ultimate designated person (UDP) of Global RESP and GGAI and is prohibited from becoming director or officer of any reporting issuer, registrant, and investment fund manager for nine years. The firms have been ordered to create independent boards of directors.
The OSC found the respondents - who have cooperated with the commission and have spent $1.35 million to bolster their compliance systems - guilty of violating the public interest due to prospectus disclosure failures, failing to refer conflicts to an independent review committee, and compliance and supervisory failings.
Fail to pay your fine? IIROC will spread the word
Results from the Investment Industry Regulatory Organization of Canada’ s (IIROC) 2013 Enforcement Report, released Tuesday, has prompted the regulator to begin publishing names of former advisors and others who fail to pay enforcement fines.
The report states that while 98 per cent of the monetary penalties assessed against firms in 2013 were collected, only 10.5 per cent of the penalties against individuals were collected. In response to this, starting next month, IIROC will publish the names of those players who fail to pay their fines, posting them to IIROC's website, which will be updated on a quarterly basis.
The new practice aims to increase transparency of IIROC’s collection rate.
Canadian life expectancy to reach 90: OSFI
The life expectancy of the average Canadian is expected to reach 90 years of age towards the end of the century, reported the Office of the Superintendent of Financial Institutions' (OSFI) on Tuesday.
In a new report, Mortality Projections for Social Security Programs in Canada – which examines mortality trends in Canada and how they will impact the growth of the elderly population – the OSFI outlines how life expectancy at age 65 has increased by two years over the last decade – twice that of previous decades.
"It is further projected to increase from 21 to 24 years for men and from 23 to 26 years for women by 2075," the report says. "This means that Canadians are expected to live beyond age 90 on average in the future."
The OSFI forecasts are used for actuarial valuations of the Canada Pension Plan (CPP) and the Old Age Security (OAS) program.