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Streetwise newsletter: Controls on sales practices at Canadian banks ‘insufficient’, watchdog finds; Aecon takeover by Chinese firm could fail over security concerns, analyst says

A Bay Street sign is seen in Toronto’s financial district.

Mark Blinch/The Globe and Mail

Here are the top reads,

Weaknesses and gaps: A consumer watchdog says Canada's six largest banks have "insufficient" controls to guard against sales tactics that could mislead clients, turning up pressure to temper a culture that rewards aggressively selling banking products. Story (James Bradshaw)

Reaction: A federal agency has stripped away any remaining pretense that banks are trustworthy providers of advice, assistance, guidance, help or anything else along those lines. Opinion (Rob Carrick)

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Takeover approval: The delayed $1.5-billion takeover of Aecon Group Inc. by China Communications Construction Co. Ltd. will likely face more hurdles and could fall apart, according to analyst Chris Murray of AltaCorp Capital Inc. Story (David Ebner; for subscribers)

Financial advisors: Ontario regulators are working to implement a new action plan designed to better protect seniors when it comes to investment matters. Story (Clare O'Hara)

FINANCIAL SERVICES WRAP

Regulation: The financial industry has been jubilant since the Senate passed a GOP rollback of banking rules last week. But even if the Dodd-Frank overhaul clears the House, U.S. lenders will remain inside a cage built by the U.S. Federal Reserve. Story

DEAL AND FINANCING WRAP

Tech sector: Salesforce.com Inc. said on Tuesday it would buy software maker MuleSoft Inc for about $6.5-billion, including debt, just a year after the software company went public. Story

IPOs: Daniel Ek, the Swedish CEO and co-founder of streaming music leader Spotify Technology SA , is eligible to sell 15.8 million shares of the company worth up to $2-billion in its direct listing, the company disclosed in a new filing on Tuesday. Story (for subscribers)

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Bond sale: Brookfield Asset Management Inc is preparing a US$1.6-billion local bond sale in Brazil to help finance part of its investment in a Brazilian gas pipeline, three people with knowledge of the matter said. Story

Deal diversity: When Trevor McFedries set out last year to raise money for Brud, his robotics and artificial intelligence start-up, he found himself in many meetings with "a ton of white guy" venture capitalists. So Mr. McFedries, who is black, and his co-founder, Sara DeCou, a Latino woman, added a condition for investors: The pair would accept money only from venture firms that had a woman or a person of color in a position to write them a check. Story

U.S. venture capital: Mythic announced today that it has closed a US$40-million round of investment led by SoftBank Ventures to help bring a high-speed, low-power AI chip to market. VentureBeat

U.S. venture capital: Mobile banking startup N26 has raised US$160-million in a series C round of funding led by Allianz Group's investment arm Allianz X and Chinese tech titan Tencent, with participation from other existing shareholders. VentureBeat

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