Tag Archives: Letter from the President

Hidden opportunities for dealers in China’s Belt and Road Initiative (IIAC Blog)

Hidden opportunities for dealers in China’s Belt and Road Initiative (IIAC Blog)

In my latest Letter from the President, I write about China’s steady integration into the global economy and financial markets, and the massive infrastructure projects it has launched to protect its economic influence. I focus on the opportunities for Canadian firms presented by the Belt and Road Initiative – a massive infrastructure project linking China to central and south-east Asia and Europe. Financing the Belt and Road Initiative will take many different forms, including the monetization of resource assets. The needed valuations of these resource assets provide an attractive opportunity for many Canadian businesses with … Continue reading

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Boosting Flagging Business Investment (IIAC Blog)

Boosting Flagging Business Investment (IIAC Blog)

On the surface, Canada’s economy seems to be doing well. Yet, there is one area of persistent weakness that weighs on policy makers – private sector capital formation. Canada is well down on the list of OECD countries when it comes to business spending as a share of GDP.

Businesses investment in physical capital (especially machinery and equipment) matters critically for productivity growth. It spurs innovation, efficiency gains and increased competitiveness.

In my January Letter from the President, I outline some reasons as to why businesses may be underinvesting and propose some policy initiatives to boost … Continue reading

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Brexit and what it portends for UK-EU and global capital markets (IIAC Blog)

Brexit and what it portends for UK-EU and global capital markets (IIAC Blog)

My December 2017 Letter from the President examines Brexit and its implications for UK-EU and global capital markets. Brexit’s impact could be modest, if financial regulation relies on mutual recognition or national treatment, or considerably disruptive, if the EU forces UK dealing banks to conduct trading and clearing with European clients within the EU, requiring a shift in UK operations to Europe.

It is clear post-Brexit, the UK and the EU need a model of regulatory cooperation. I believe the Financial Stability Board (FSB) may be the best possible vehicle to take on responsibility for a … Continue reading

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Federal Tax Proposals – Another Blow for Small Business Capital-Raising (IIAC Blog)

Federal Tax Proposals – Another Blow for Small Business Capital-Raising (IIAC Blog)

On July 18, 2017, the federal government unveiled proposed changes to address tax planning strategies involving the use of private corporations. The government is concerned that so-called wealthy Canadians are exploiting tax “loopholes” and the tax system must be made more fair. This is highly misleading. Business owners are following existing tax rules that are legislated, clear and in effect for decades.

The tax proposals have created a firestorm of protest. In my latest Letter from the President, I focus on the proposed tax treatment of passive investment income in private corporations and the potential … Continue reading

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The Investment Industry at Mid-Year (IIAC Blog)

The Investment Industry at Mid-Year (IIAC Blog)

My September 2017 Letter from the President provides an overview of recent performance in the investment industry, highlighting developing business trends, the challenges faced by large and small investment dealers, and the outlook for the mainline businesses and firm groupings. 

Click here to read it.

 

 

 

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IIROC Rule 42 Compensation-Related Conflicts Review (IIAC Blog)

IIROC Rule 42 Compensation-Related Conflicts Review (IIAC Blog)

The traditional advisory and brokerage business is replete with extensive conflicts of interest, notably the conflicts between buyers and sellers, from proprietary dealings though dealers in over-the-counter debt securities, new securities offerings, and the fees and charges to clients for services. These inherent conflicts have been the driving force behind the reforms for greater transparency in client dealings and for a higher standard of obligations for advisors. Continue reading

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Worrisome Fragmentation of Global Capital Markets (IIAC Blog)

Worrisome Fragmentation of Global Capital Markets (IIAC Blog)

In my May Letter from the President, I discuss developments that threaten fragmentation of global capital markets. These include Brexit, the rise of populism and protectionism across Europe and elsewhere, and the push for deregulation and dismantling of existing regulations.

Global and regional authorities are working to maintain open and integrated markets to ensure the smooth and efficient functioning of markets. However, there are no quick fixes. Bond and repo market liquidity conditions remain a concern. Automation has the potential to transform the industry and deliver more liquidity to investors.

Click here to read more.

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Letter from the President: Wisdom from the Asian Financial Forum and the lessons for Canadian policymakers (IIAC Blog)

Letter from the President: Wisdom from the Asian Financial Forum and the lessons for Canadian policymakers (IIAC Blog)

In my latest Letter from the President, I look at the rise of populism in the developed world. The emergence of the so-called “new normal”, marked by weak GDP growth and stagnant incomes, has unfolded as a troubling, persistently enduring economic condition, rather than a cyclical phenomenon. I argue that governments must find consensus for pro-growth policies to break the economic malaise, embracing low tax rates, broad tax reform, stimulative spending, and deregulation, and avoid the impulse for excessive social spending and protectionism. Failure risks political pressure for even more radical policy solutions.

The IIAC has … Continue reading

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Have We Reached the High Water Mark for Global Regulatory Reform? (IIAC Blog)

Have We Reached the High Water Mark for Global Regulatory Reform? (IIAC Blog)

The aftermath of the 2007-2008 global financial crisis was an intensive period of financial regulatory reform across the developed world. The urgency and extent of reform, particularly in the early years, laid the ground for excessive and unintended consequences.

There is a growing consensus that the pendulum has swung too far. Regulators in many jurisdictions are taking Penny Stocks of the impact of reform on markets and on the economy.

We expect that an ongoing review of the reform impact and rising compliance costs for the financial sector will slow the rulemaking process, … Continue reading

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Attracting Capital to the Wealth Management Business (IIAC Blog)

Attracting Capital to the Wealth Management Business (IIAC Blog)

My latest Letter from the President describes the opportunities and challenges for the retail investment industry. While we estimate about 30 retail boutiques lost money, on a net basis, in each of the last four years, it is important to stress that many small and mid-sized firms have been profitable.

Firms have made herculean efforts to control cost increases through staffing reductions, increased reliance on technology and out-sourcing, and adjustments to advisor compensation grids.

Firms have also focused efforts on improving advisor productivity through training and continuing education programs. They have boosted their competiveness by providing … Continue reading

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