AdobeStock / Pixel Shot Toronto-based insurance company ivari has agreed to retain an independent monitor to review and assess its compliance system. Having a monitor “validate that [ivari] has a system in place that is reasonably designed to ensure that its agents who distribute its products are in compliance with regulatory requirements” is one of the conditions imposed by the Financial Services Regulatory Authority of Ontario (FSRA) in order for ivari to maintain its insurance licence. As stated in an order issued Thursday, FSRA requires the monitor to review the selling practices of the ..read more

iStock / JHVEPhoto Laurentian Bank of Canada’s chief executive says it’s launching a new strategic plan meant to make the company “stronger, sustainable, and more profitable.” The Montreal-based financial institution announced the move Friday, saying the plan will position the company as an alternative bank for young and middle-class customers who are “underserved or under appreciated” by rivals and more likely to consider switching from rivals. “Commercial banking will remain the bank’s growth engine, and we will grow market share in personal banking by introducing new, low-cost, value-add ..read more

iStock / MicroStockHub Employees have made more claims for anti-obesity drugs and substance use disorder in recent years, finds a study of group benefits data by Manulife Financial Corp. Drug claims for anti-obesity medication in Canada increased by 42.3% from 2022 to 2023, and substance use disorder claimants increased by 17.2% in the same period, according to Manulife’s first Employee Health Report released Friday. The report used aggregate claims data across Manulife’s Canadian group benefits business. Across the 2020–2023 period, the increase in claims for anti-obesity drugs was steeper ..read more

Bank of Canada Canadian economic growth came in slower than expected for the first quarter, strengthening the case for a possible interest rate cut by the Bank of Canada next week. Statistics Canada said Friday the economy grew at an annualized rate of 1.7% in the first three months of the year. It also revised its reading for growth in the fourth quarter of 2023 downward. The agency said growth in the last three months of 2023 was at an annualized rate of 0.1%, compared with its initial report of an annualized rate of 1%. The report is the last major economic data point before the Bank of ..read more

AdobeStock / Vadim Rodnev Despite rising provisions for credit losses, Canadian banks managed solid earnings growth in the second quarter, says Fitch Ratings. The rating agency said in a report that the Big Six banks and Desjardins Group saw adjusted net income rise by 6.6% year over year. “In general, strong domestic banking, wealth management and capital markets performance, and improved cost controls, helped offset significant increases in loan loss provisions,” Fitch said. Adjusted revenues were up 10.2% year over year, the report found, with the growth driven by activity in Canadian ba ..read more

iStock / MicroStockHub The transition to next-day settlement was widely anticipated to be successful — and it was. Spokespeople for the exchanges say T+1 changes were implemented as expected with minimal disruption. “We experienced some isolated intraday processing delays on Mon., May 27, and undertook measures to address the issue,” added a TMX Group spokesperson in an email. “All key and critical functions have been operating as normal.” Financial advisors and portfolio managers we interviewed prior to the changeover said the transition was barely noticeable. “I can think of few cases whe ..read more

AdobeStock / Elena Berd Stephen Poloz is concerned about investment levels in Canada’s private sector, which he says have been dampened by higher government spending and volatility in U.S. trade relations. The previous Bank of Canada governor spoke at an Economic Club of Canada event in downtown Toronto Thursday alongside former federal finance minister John Manley. Poloz says certain moves by the federal government are contributing to lower business investment rates and productivity growth in the private sector. “We got to the point where there was not as big a windfall to cover all of the ..read more

AdobeStock / Niroworld The Financial Services Regulatory Authority of Ontario (FSRA) has fined two firms in connection to a man who allegedly acted as a life insurance agent without the necessary licence, the regulator said Thursday. FSRA said the person was contracted with World Financial Group Insurance Agency of Canada Inc. (WFGIA Canada) and acted as an insurance agent and advisor for Industrial Alliance and Financial Services Inc. (IA) between October 2021 and July 2022. The person arranged 58 life insurance policies for clients during that period, the regulator said, but was allegedly ..read more

iStock / Franckreporter High levels of immigration are helping blunt the economic impact of Canada’s aging population even though it’s worsened challenges with housing affordability, a report by RBC says. Carrie Freestone, an economist with RBC, said Canada’s retirees are still consuming goods and services, including health care, Canada Pension Plan and Old Age Security benefits, creating an imbalance between demand and what the economy can produce. As fewer people pay into public service programs and more people become recipients, Freestone added it widens the gap between government tax re ..read more

AdobeStock / Sizsus Most actively managed funds in Canada failed to consistently beat their benchmarks over longer periods, according to the latest Canada Persistence Scorecard released on Tuesday. The scorecard, produced by S&P Dow Jones Indices, examines performance persistence over three and five years, using data from Fundata Canada Inc. Across seven equities categories (Canadian, Canadian-focused, Canadian dividend and income, Canadian small- and mid-cap, U.S., global and international), not a single manager whose performance placed them in the top quartile in 2019 remained in the ..read more