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FINANCIAL SERVICES NEWS

Two U.S. divisions of Bank of Montreal pay US$38-million to settle SEC charges it hid conflicts of interest: Two U.S divisions of the Bank of Montreal have agreed to pay almost US$38-million to clients for failing to disclose conflicts of interest when selling certain in-house investment funds. The U.S. Securities and Exchange Commission said on Friday that BMO Harris Financial Advisors Inc. and BMO Asset Management Corp. have agreed to pay the money to settle charges regarding their failure to tell clients about how they selected investments in their retail investment advisory program. Story (Clare O’Hara)

Wall Street signals approval as Wells Fargo appoints veteran banker Charles Scharf to lead turnaround: After a difficult, months-long search for a new chief executive, scandal-plagued Wells Fargo & Co. named as its next leader Charles Scharf, a one-time Jamie Dimon protégé known on Wall Street as a detail-oriented number cruncher who excels in streamlining operations. Mr. Scharf, 54, who joins the fourth-largest U.S. bank next month, has been the CEO of Bank of New York Mellon and Visa Inc. Story (Reuters)

Scotiabank’s deal to sell Caribbean, South American banks hits another hurdle: Bank of Nova Scotia’s plan to pull out of nine Caribbean and South American countries hit another stumbling block this week as Guyana’s central bank turned down the lender’s proposed deal to sell its local operations. Story (James Bradshaw)

Telus executive, who was thought to be in line for CEO job, departs company: Telus Corp.'s chief corporate officer Josh Blair is leaving his executive role at the company, making him the second potential successor to CEO Darren Entwistle to depart this year. Story (Alexandra Posadzki)

Why Canada’s top insurers are eyeing growth in Asia: Two of Canada’s top insurers have zeroed in on Asia as key to their growth, and may be ready to shell out more than US$2-billion to boost their presence there. Story (Jeffrey Jones)

Toronto remains a priority, even as WeWork slows its expansion plans around the world: WeWork plans to keep adding shared-office locations in Toronto even as it slows expansion around the world in order to stem its losses. The New York-based company, which leases office space for upward of 10 years and then subleases it at a premium for short periods, has expanded to more than 500 locations in about 100 cities in less than a decade. Story (Rachell Younglai)

Exit of two Canadian executives clouds WeWork expansion: WeWork’s top two Canadian executives have left the company, adding uncertainty to its expansion plans amid the upheaval surrounding its failed initial public offering and the demotion of its co-founder. Two property experts had been hired to bolster operations in Canada and woo new business with landlords who had concerns about WeWork. Both resigned in August. Story (Rachelle Younglai)

Bid to privatize Callidus plunged as company struggled: A Bahamas-based billionaire proposed to buy out Callidus Capital Corp.’s minority shareholders last year for nearly seven times the price eventually agreed upon. Story (Jeffrey Jones)

Home Capital prices its first residential mortgage-backed securities in $425-million offering: Mortgage lender Home Capital Group Inc. has priced its first offering of residential mortgage-backed securities, potentially marking an important step toward creating a viable private market for investing in pools of Canadian mortgages. Story (James Bradshaw)

DEALS NEWS: MERGERS, ACQUISITIONS, IPOs and FINANCINGS

Former B.C. premier Christy Clark joins Constellation Brands board, adding Canadian heft to cannabis bet: Former British Columbia premier Christy Clark is joining Constellation Brands’ board of directors as the American alcohol giant tries to rescue its bet on Canadian cannabis. Story (Tim Kiladze)

Juul replaces CEO; Philip Morris and Altria scrap merger talks: The chief executive of e-cigarette maker Juul stepped down on Wednesday as merger talks between its biggest investor Altria and Philip Morris collapsed in the face of a regulatory backlash against vaping that could reshape the industry. Story (Reuters)

Newfoundland software company Verafin secures largest ever Canadian venture deal with $515-million transaction: For the second time this month, a Canadian technology company has set the record for the largest venture funding deal in the country’s history. Story (Sean Silcoff)

Aramco IPO unlikely this year after attacks on Saudi oil facilities: report: Saudi Arabia is unlikely to list its state-owned oil giant Aramco this year after attacks this month on its facilities, two sources with direct knowledge of the company’s thinking said. Story (Reuters)

First Quantum weighing sale of minority stake in Zambian copper assets: Shares in First Quantum Minerals Ltd. nosedived on Monday after it batted away speculation it could be acquired any time soon, instead saying it has held talks about selling a minority stake in some of its Zambian assets. Story (Niall McGee)

Yukon’s government and several First Nations invest in new Panache Ventures fund: The Yukon government and seven of the territory’s First Nations are the latest Canadian institutions to fund Canada’s thriving technology scene, backing a seed-stage venture capital fund founded by former principals of 500 Startups’ short-lived Canadian fund. Story (Sean Silcoff)

IN CASE YOU MISSED IT

Sign here: Why the increasing use of non-compete clauses is bad for employees, and the economy: How much firepower does an employer need to prevent staff from jumping to rivals and taking valuable intellectual property with them? Employment lawyers in Canada are growing alarmed at the spread of sweeping provisions known as non-compete clauses in contracts for even low-level employees. These provisions are sometimes used as a weapon to intimidate workers into staying put or stalling their next career move. Story (Christine Dobby)

WeWork co-founder Adam Neumann gives up control, CEO role following investor revolt: WeWork co-founder Adam Neumann agreed on Tuesday to resign as chief executive and give up majority voting control, after SoftBank Group Corp. and other shareholders turned on him over a plunge in the U.S. office-sharing startup’s estimated valuation. Story (Reuters)

Waterloo tech company Kik shuts its popular app to focus on cryptocurrency dispute with SEC: Canadian technology startup Kik Interactive Inc. is shutting down its messaging app and laying off most of its staff as it looks to deploy its remaining resources on defending itself in a legal battle with the U.S. Securities and Exchange Commission over its cryptocurrency venture. Story (Alexandra Posadzki)

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