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Here are the top reads on deals and financial services over the last 24 hours,

Banks face stiffer capital rules to buffer a debt-led downturn: Canada’s banking regulator will require large banks to hold more capital to guard against looming risks to the economy, including high levels of household and corporate debt. The Office of the Superintendent of Financial Institutions (OSFI) said on Wednesday it is raising the so-called “domestic stability buffer,” an added cushion that Canada’s six largest banks are required to build into their core capital reserves to help them cope in an economic downturn. Starting April 30, 2019, the buffer will rise to 1.75 per cent of a bank’s risk-weighted assets, up from the current 1.5 per cent. Story (James Bradshaw, for subscribers)

GMP Capital’s global expansion peters out with sale of U.S. debt division: GMP Capital’s near-decade of international expansion is ending, with the independent dealer selling its U.S. fixed-income division. GMP acquired the New York-based business, formerly known as Miller Tabak Roberts Securities, in 2011 for US$44-million. The sale price was not disclosed, but the business had been struggling of late. Story (Tim Kiladze, for subscribers)

Mackenzie Financial faces $175-million class-action lawsuit over advice fees: A third investment fund manager may be held accountable for do-it-yourself investors being charged millions of dollars in fees for advice they are not receiving, according to a recent lawsuit filed against Mackenzie Financial Corp. Two Ontario-based law firms, Siskinds LLP and Bates Barristers PC, have filed a $175-million class-action lawsuit against Mackenzie Financial, claiming that investors who bought the firm’s funds through discount brokers were overcharged because certain funds paid a trailing commission that included a fee for advice. Story (Clare O’Hara, for subscribers)

Vancouver entrepreneur whose last business was sold to PayPal for $400-million expands new fintech for banks: A Vancouver entrepreneur whose previous business was acquired by PayPal Holdings Inc. for $400-million is set to announce a key partnership with JPMorgan Chase & Co. for her latest financial-technology venture. Lisa Shields founded FI.SPAN in 2016, a year after she stepped down as chief executive of Hyperwallet Systems Inc. Story (Josh O’Kane, for subscribers)


Pension funds: The Canada Pension Plan Investment Board (CPPIB), the country’s biggest public pension fund, plans to continue deploying capital in China, despite political tensions between the two nations, Chief Executive Mark Machin said on Wednesday. Story (for subscribers)


Power grid business: ABB is in talks with Japan’s Hitachi about the Swiss engineering group’s power grid business, which it may sell to focus on more profitable divisions. Story (for subscribers)

IPO: China-based music streaming company Tencent Music Entertainment Group said it raised close to $1.1-billion in its U.S. initial public offering (IPO) after pricing its shares at the bottom of its targeted range. Story (for subscribers)

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