Anyone gunning for changes to the way Canadian investment advisers get paid, particularly for peddling mutual funds, is supposed to be excited about the new, national agreement to fix the current system. I can't help but feel disappointed.
What started in 2012 as a full-throated review of embedded fund commissions has devolved into a small circus of sorts.
Who knows now whether charges such as trailer fees, which usually cost 1 per cent annually and are paid to the adviser simply for keeping someone invested in a certain fund, will ever be outlawed.
Amid early outcry from industry and its lobby groups, regulators commissioned two independent studies on the impact of embedded fees in order to cover their butts.
These took two years to complete, and in the end, merely confirmed what we already knew: Embedded fees distort which funds get purchased. Story
Lexpert
A graphical analysis shows that, for Canada, the impact of Brexit on M&A will be particularly pronounced. Over the past three years, acquisitions in Britain represented 45 per cent of all M&A in the European Union. While the German economy, by GDP, is 20 per cent larger than Britain's, language and historical ties have made Britain our greatest transaction destination by far. Annually, Britain attracts $20.2-billion in Canadian M&A deals, compared with $24.8-billion for the rest of the EU combined. Story
Sequoia Fund exits Valeant stake
Ruane, Cunniff & Goldfarb Inc., the investment firm that runs the Sequoia Fund and once the largest shareholder of Valeant Pharmaceuticals International Inc., said it exited its position in the embattled Canadian drugmaker by mid-June. Story
Lightstream's debt plan approved
Lightstream Resources said Wednesday it has been granted preliminary court protection from creditors as it pursues a plan to reduce its debt by $1.175-billion, a move that would see secured creditors receive 95 per cent of the struggling company's equity.
Current shareholders would end up with 2.25 per cent of the equity in a revitalized Lightstream, which has been unable to keep up with its interest payments since late 2014. Unsecured noteholders would get 2.75 per cent.
The outlined plan would reduce its annual interest payments by about $112-million. The company had previously warned that it wouldn't be able to make a $41.7-million interest payment on June 15, starting the clock on a 30-day grace period that ends Friday. Story
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Tim Kiladze