The union representing postal workers has given notice of its intent to strike starting this evening (June 2), unless a settlement is reached.
Nova Scotia securities rules require public companies and community economic-development corporations to deliver disclosure and voting or proxy materials to shareholders.
A postal strike could affect companies that use regular mail to meet these requirements.
The Nova Scotia Securities Commission and other Canadian Securities Administrators are monitoring the situation. If a full postal service work stoppage occurs, we will respond with more information.
In the meantime, we encourage companies to consult with their service providers and legal advisers as to alternate delivery options.
]]>Today the Canadian Securities Administrators (CSA) launched a free mobile money management application (app) and interactive web site called My Make it Count to help users better understand and monitor their spending behaviour in real time.
The My Make It Count app allows users to track the money they earn and spend each day, set savings goals, monitor their financial habits, and share smart spending ideas on-the-go. Along the way, it should also help develop good financial habits.
According to a recent survey, young Canadians are struggling to manage their finances. Seventy-two per cent of Canadians between the ages of 18 and 29 had credit cards and 22 per cent had a personal line of credit. Six in 10 reported they had debt, with almost two-thirds of those reporting they had credit card debt, and 44 per cent saying they had student loans.
The easy-to-use My Make it Count app is designed to give users a greater understanding of their relationship with money. My Make it Count tracks the number and type of transactions made during a specified time period and is readily accessible from mobile devices in real time. With an increased visibility of their spending habits, users can then make smarter choices about their habits and better manage their money.
While designed to work with Make it Count – a program to help parents and teachers teach money management lessons to youth aged four to fourteen, the My Make it Count app can be used by Canadians of all ages. To download the free app, search ‘My Make it Count’ in the iTunes Store. To use the My Make it Count program, go to MyMakeitCount.ca.
The app and website are available in both English and French.
How you can use the My Make it Count App:
About Make it Count
Make it Count information and guides for parents and instructors are available at mymakeitcount.ca and provide tips, activities and plenty of opportunities to engage youth in talking about effective money management. Order or download your free copy at makeitcountonline.ca.
]]>To kick-off Fraud Prevention Month in March, the Canadian Securities Administrators (CSA) are encouraging investors to protect themselves from investment fraud of all types, and to be specifically wary of online fraud.
Online investment scams are a simple, anonymous, cost-effective way for scammers to reach millions of potential victims who are looking on the web for investment opportunities. A recent survey shows more than one-third (34 per cent) of Canadians are or are considering online investing as a way to make and manage their investments. Six out of ten online investors state that the media is their number one source for information, and half use general web searches.*
“The CSA’s enforcement actions confirm that Canadian investors have been victims of fraudulent online investment schemes,” says Bill Rice, Chair of the CSA and Chair and CEO of the Alberta Securities Commission. “We want to remind investors to look beyond slick, professional looking websites and unsolicited emails, do more research and seek a second opinion before investing in any opportunity.”
The recently released 2010 CSA Enforcement Report acknowledges the growing trend of online investment fraud and highlights how CSA members are using online tools and social media to fight back. In the Genius Funds case, Canadian securities regulators acted quickly to stop the illegal sales of securities being promoted online and used blogs and other social media to warn investors about the scheme. As well, CSA jurisdictions have previously taken enforcement action against those who promoted fictitious oil and gas activities through false websites for Al-Tar and Alberta Energy Corp. and raised more than $650,000 from investors throughout Canada and Britain.
Canadians are encouraged to visit the CSA’s Avoiding Fraud website page, to learn more about investment fraud and the basics of investing at www.securities-administrators.ca.
The CSA continues to participate as a partner in the Fraud Prevention Forum, joining more than 90 private sector firms, consumer and volunteer groups, and government and law enforcement agencies that are committed to educating the public and fighting fraud targeted at consumers and businesses. Throughout the month of March, these organizations will be involved in a number of national, regional and local activities supporting fraud prevention.
*Bank of Montreal InvestorLine survey, July 2010.
]]>The report shows actions by Canadian securities regulators led to more than $63 million in fines and administrative penalties in 2010 from 174 cases involving 207 people and 100 companies.
Locally, the Nova Scotia Securities Commission investigated 57 complaints and issued $219,000 in administrative penalties in 2010.
The commission also concluded ten cases against 11 defendants. Three involved illegal distributions, two cases dealt with market manipulation, four cases of registration misconduct, and a single case of conduct not in the public interest.
One of the notable highlights in the report indicates that in 2010, more proceedings were concluded before provincial courts, which, in some cases, handed down jail sentences.
Under securities legislation, securities regulators can bring cases before an administrative tribunal or a provincial court where they can seek sanctions that can include jail terms for breaches of securities law. In 2010, the total number of cases of securities laws violations that CSA members concluded before courts increased by 83 per cent. In these cases, courts ordered jail terms for 15 individuals, ranging from approximately three months to three years.
The CSA’s 2010 Enforcement Report comes out in advance of Fraud Prevention Month in March, which highlights the tools and resources available to Canadians to recognize and avoid investment fraud.
Key highlights of the CSA’s 2010 Enforcement Report:
The Alberta Securities Commission’s You ASC’d blog offers five top tips to avoid false RRSP promises.
Mike Holman at MoneySmarts blog wrote a great description of the RRSP Home Buyers Plan.
Jim Yih at the RetireHappy blog created a very thorough and helpful Online RRSP Guide. Check it out if you still have RRSP questions.
And the Globe and Mail’s Larry MacDonald writes about the 13 most common RRSP blunders.
Also a hot topic this week was financial literacy, following the release of the report from the National Task Force.
Jonathan Chevreau at the Wealthy Boomer asks: Does the financial services industry profit from financial illiterates?
The Riscario Insider poses similar questions and more in The ABCs of 123: The key to financial literacy/numeracy.
Also of interest this week:
I was sad when I heard David Chilton would not be publishing an updated version of pne of my favourite finance books, The Wealthy Barber. Ao I was thrilled to read in the Canadian Business Online Blog that the Wealthy Barber is back – “significantly older and marginally wiser.”
2 Cents at http://balancejunkie.com/2011/02/16/whats-your-investment-personality/ helps you to discover what is your investment personality.
Another great post from the MoneySmarts blog on how to do a background check on your adviser.
And finally, while my posts at Before You Invest are about investment or fraud related topics, I recently entered a personal finance blogging contest, where I told a personal story about gaining financial control to achieve my wildest dreams. Please check it out.
]]>To celebrate romance this Valentine’s Day, we’d like to share tips on how to talk about money with your loved one, and to help you balance the romance with the reality.
Also, beware of springing an expensive surprise purchase on your partner, romantic or not. If you are sharing finances – they have to pay for it too! Don’t be afraid to institute spending limits on birthday, Christmas or Valentine’s Day gifts.
For more tips on managing your money as a couple, check out The Smart Cookies’ Guide to Couples and Money, Smart Couples Finish Rich, Canadian Edition by David Bach, or Rich by Forty: A Young Couple’s Guide to Building Net Worth by Leslie Scorgie.
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The Task Force states that financial literacy is critical to the prosperity of individual Canadians and the nation as a whole. The report stresses how increasing the knowledge, skills and confidence of Canadians in making financial decisions will help them meet their personal goals, enhance their quality of life and make Canada more competitive.
The National Strategy’s priorities are:
• Shared Responsibility
• Leadership and Collaboration
• Lifelong Learning
• Delivery and Promotion
• Accountability
The Nova Scotia Securities Commission, working with our partners in the Canadian Securities Administrators, strives to advance investor education and through this increase the financial literacy of Canadians. We look forward to collaborating with these and other providers to assist Canadians in managing their finances throughout their lifetimes.
We encourage you to read the full report, which can be found at www.financialliteracyincanada.com.
]]>A CEDIF, or Community Economic Development Investment Fund, is an investment fund designed to encourage investment in Nova Scotia by Nova Scotians.
Investing in CEDIFs may qualify the investor for a 35 per cent provincial non-refundable income tax credit, making them an attractive investment for many Nova Scotians. Along with this possible tax benefit, there is also the satisfaction of investing in and supporting local communities. CEDIFs are also eligible investments for Self-directed RRSP accounts, which comes with an additional tax benefit.
On the other hand CEDIF’s are very speculative, high risk investments with very little liquidity and no available market value. Investors have no right to demand that the CEDIF or anyone else buy their shares back from them or to buy them at any particular price. So when investors want their money back they must rely primarily upon the willingness and ability of the CEDIF to buy their shares at a price which will be set by the CEDIF.
For those of you considering a CEDIF investment, we have attempted to briefly describe what they are, and how they work.
Sales of shares in CEDIF’s are exempt from the requirements to file a prospectus with the Nova Scotia Securities Commission, and for sellers of CEDIFs are not required to be registered with the NSSC.
CEDIFs must file an Offering Document with the Commission, and after staff signify in writing that they do not object to the CEDIF selling shares, they can and must give a copy of the Offering Document to each potential purchaser. The Offering Document will disclose to readers useful and important information about the offering of shares. For example the Offering Document will disclose among other things:
At the same time as Staff of the NSSC are checking the CEDIF for compliance with the Securities Legislation, the Nova Scotia Department of Finance is checking for compliance with the Equity Tax Credit Act. If the Department of Finance is satisfied, they will issue an Equity Tax Credit Certificate to the CEDIF. After the sale of shares is completed the CEDIF will provide the Department of Finance with information on the purchasers and the Department will send Equity Tax Credit receipts to investors for 35 per cent of the amount they invested.
These amounts are non-refundable income tax credits against provincial income taxes payable and are entered on form NS 428 of the income tax return. If an investor sells their shares before a five year hold period expires they must repay the tax credit. The Canada Revenue Agency recovers this money on behalf of the Province.
CEDIF shares can be held in Self Directed Registered Retirement Savings Plans (RRSPs) , though the annual fees involved in self directed RRSPs makes small investments uneconomical.
This is not intended to be a full description of CEDIF’s or the implications and risks of investing in CEDIFs. Potential investors are advised to consult with their financial advisor prior to investing.
For further information on CEDIF’s please see:
http://www.gov.ns.ca/nssc/corporatefinance/cedif.htm
http://www.gov.ns.ca/econ/cedif/ http://www.gov.ns.ca/finance/en/home/taxation/personalincometax/equitytaxcredit/default.aspx
]]>Yesterday, the North American Securities Administrators Association (NASAA) released an investor alert and tips to help investors protect themselves, and assess the risks of peer to peer lending. (Before You Invest, as a blog of the Nova Scotia Securities Commission, is an active member of NASAA.)
NASAA’s investor alert urges potential lenders to consider the risk of the borrower defaulting on the loan. Peer-to-peer loans are unsecured; therefore, investors are dependent on the borrower to repay the loan and may have no legal ability to pursue the borrower in the event the borrower fails to pay. The notes issued to the lender are not CDIC-insured, nor are they guaranteed by any federal or provincial agency.
NASAA also advises investors to be aware that the identity of the borrower is often not available to the lender, making it impossible to verify independently the status of the borrower’s finances and business prospects. The lending platform may not do a thorough background check of the borrower, and borrowers may incur additional debts to other lenders.
Like any investment opportunity, when you see a peer-to-peer lending opportunity on the Internet, you should do your homework. Depending on how the loan is set up, you could actually be purchasing a security, not giving a loan. This security would be regulated by provincial securities laws, and the seller would be required to be registered with the Nova Scotia Securities Commission.
“It takes time to fully assess the risks and rewards of financial innovations such as peer-to-peer lending,” said NASAA President and North Carolina Deputy Securities Administrator David Massey. “Investors should proceed with caution when considering new investment vehicles.”
Read NASAA’s investor alert for more information peer-to-peer loans and assessing the risks of lending over the Internet.
]]>Miranda at Financial Highway starts us off with tips on how to save money on holiday decorating.
Jonathan Chevreau at the Wealthy Boomer presents Mint.com as Help for those without a plan.
For those wondering about the training your adviser has taken, or what is required to get into the industry, Mike Holman at Money Smarts Blog does a great job describing Canadian financial adviser qualifications and courses.
At Money 2.0, on the Get Smarter About Money blog, read about moving beyond RESPs – additional ways to save for a child’s education.
Tired of paying others to do what you could do yourself with just a little training? Frugal Dad provides fatherly tips on how to become more self-sufficient.
Gail Vaz-Oxlade has started another blog series – this time a glossary, the ABCs of Money. I was planning to do something similar here in the new year. I’ll keep watching for her updates and decide whether I have more to add or not.
And last but certainly not least, 2 Cents at Balance Junkie gives a unique perspective on financial markets in Lucy and the Charlie Brown market.
Thanks are due this week to the Canadian Finance Blog who included our post on inflation in the Canadian Finance Carnival #12, and to Investing Thesis for including links to two of last week’s articles: inflation and managing inflation, in the 10th edition of the Canadian Personal Finance & Investing Carnival.
See you next week.
]]>Mint.com has been named the best online personal finance tool by Money Magazine, PC Magazine, and is PC World’s Editor’s Choice. It is also a favourite of many of my favourite personal finance blogs (Canadian Finance Blog, Money Smarts, and Personal Finance Software Reviews), which is how I first heard of the service.
To use Mint.com, you register with your email address, and then add the log–in information for the online bank, credit union, debt and investment accounts you want to track. Mint.com’s software automatically pulls together your account data, to provide up to date and accurate views of your finances. It also analyses this data, providing personalized money-saving and money-making suggestions.
Your account information is updated daily and Mint.com automatically categorizes all your purchases, showing you how much you spend on gas, groceries, parking, rent, restaurants, DVD rentals and more. You can sign up for alerts by email or text message on any unusual activity, low balances, fees and upcoming bills, keeping you constantly aware of your money.
As a budgeting tool, it doesn’t get much better, really.
Though you register with an email address, Mint.com maintains that accounts are anonymous and that the site never knows your identity. Aaron Patzer, the founder and CEO of Mint.com is quoted in the National Post saying: “We take [data security] very seriously and hold to extremely high standards, which meet or exceed requirements. We reviewed all our processes with our privacy and security teams to ensure they were acceptable in Canada.”
As with any service, read the fine print and the privacy policy and be sure you are comfortable before you sign up.
Note: Before You Invest and the writer of this post are in no way affiliated with Mint.com. I have tried out the software and consider it a great tool, but choose not to use it day-to-day because I do not do the majority of my banking online, thus it is of limited use to me.
]]>Deflation increases he purchasing power of your money, allowing you buy more goods with the same amount of money over time. A piece of gum that costs $1 this year will cost only 95 cents next year, with five per cent deflation.
Well… lower prices are good, aren’t they? Why wouldn’t the Bank of Canada aim a steady rate of deflation, rather than its current target of two per cent inflation? At fist glance this may seem confusing, but think about more than the cost of goods at the till. When prices fall, so do company profits. This can lead to factory closures and unemployment, which then lead to companies and individuals defaulting on loans. Not very good after all.
As an investor, deflation initially allow for buying stocks at lower prices, but over time, deflation falling profits are not good for the markets.
]]>Managing inflation goes back to basic economics, and the theory of supply and demand. If something is in good supply, prices go down. If supply is low, an item is hard to get and prices go up. For example, if you live in a “one-horse town” everyone wants to own that one horse (demand is high), and will pay a lot of money for it. If a newcomer arrives with 10 horses to sell, supply has increased, and prices will go down. Imagine the same horse seller visits a town where everyone already owns a horse. Demand is low. The seller will have to drop prices even more to convince people to buy his horses.
Interest rates are essentially the price of money. If interest rates go up, money is more expensive to borrow. It costs more to borrow money for your house, car or vacation. Fewer people will borrow, thus demand for goods goes down. If demand goes down, prices go down. This keeps inflation low.
If low inflation is good, then why not always have high interest rates? Well, if money is too expensive, and people aren’t borrowing, then people are not buying cars or houses, or going on vacation. This is naturally not good for the economy. In a recession, interest rates are often lowered (as in the previous few years in Canada) to encourage people and business to spend more and stimulate the economy.
The Bank of Canada sets the overnight interest rate in Canada with these goals in mind. They are constantly seeking a balance between stimulating the economy, and keeping inflation under control. If rates are too low for too long, inflation can get out of control, and the price of goods and services can rise dramatically, which is also not good for the economy.
As investors, we like high interest rates, as our deposits and bonds make more money over time. As borrowers, we prefer low rates, so our mortgages and car loans are cheaper. The rate of interest and the rate of inflation will influence your financial plan and your investing strategy. Have you discussed inflation with your adviser? Do you know how it might affect your plan?
For more on the Bank of Canada and monetary policy, read about the monetary policy transmission mechanism.
]]>Originally known as PhoneBusters, the Canadian Anti Fraud Centre is Canada’s one-stop-shop for fraud reporting. To serve you better, the organization has just launched its new website at www.antifraudcentre.ca.
What exactly does the Canadian Anti Fraud Centre do? Each year, they receive tens of thousands of calls and e-mail messages from consumers all across Canada and the USA. Anti-fraud specialists work to help callers protect themselves from being victimized by identity crimes and other fraud schemes.
The Centre’s intelligence team analyze the collected fraud information and prepare reports, which are then shared with law enforcement agencies across the country. This information allows investigators in one province to see how frauds they’re working on are connected to frauds taking place in other parts of the country – or in other parts of the world. This enables police officers to crack complex cases and ultimately make arrests.
Keep in mind, the Centre is not an investigative agency – if you’re a fraud victim, you must contact your local police force if you want the crime investigated. If you are reporting investment fraud, contact your securities regulator. However, if you want to help shut down the organized crime groups responsible for the most lucrative, large-scale frauds, be sure to contact the Canadian Anti Fraud Centre as well. The more people who report, the greater the chance of shutting down the criminals responsible for scams.
For the latest on emerging fraud trends, advice on protecting yourself , and victim’s guides that will help you recover from fraud loss, visit the Canadian Anti Fraud Centre’s new website at: www.antifraudcentre.ca
]]>The Canadian government estimates that between four and ten percent of seniors in Canada experience some kind of abuse, though with reporting rates being very low, it is likely that these numbers underestimate the problem.
Elder abuse may include neglect and physical abuse, sexual, psychological or emotional abuse, or even financial abuse.
One of the most devastating and costly forms of senior financial abuse — investment fraud — is often carried out by trusted financial advisers or even family and friends.
Seniors are increasingly targeted by con artists using investment pitches, often in a place the senior believes to be a safe setting like church, a social club, or through supposedly educational “free lunch” seminars.
Help seniors spot and stop financial abuse and exploitation by knowing what to look for and who to call for assistance. Call the Nova Scotia Securities Commission (or your local securities regulator) if you believe that you or someone you know may be the victim of financial abuse or exploitation through an investment scam.
Help stop senior abuse in all its forms. The following resources from the government of Nova Scotia may be of assistance:
Call the Senior Abuse Line for information or to talk about a situation of abuse. Your call will be kept confidential.
Abuse may be a crime and fall under the Criminal Code. Call your local police station for information or to report abuse. If the situation is an emergency or if it could be dangerous, call 911.
If you know of a senior in need of protection, call Adult Protection Services at the Department of Health. Adult Protection workers can intervene and offer services to help those in need of protection.
Report known or suspected cases of abuse in a licensed health facility (such as a nursing home, residential care facility, or hospital) to the Protection of Persons in Care office at the Department of Health.
For general inquiries related to senior abuse or to talk about a situation of abuse, you can also e-mail [email protected]
]]>Check out today’s headlines in Science Daily, to read about a large study proving that when it comes to math, women and men are equal.
]]>Almost three-quarters of Nova Scotian investors researched or had advisers research their most recent investment opportunity.
Only two per cent of Nova Scotians said they would invest without further research in a high-return investment offered by a co-worker, friend or family member. These are just two of the findings in the Canadian Securities Administrators 2010 Survey on Retirement and Investing, released today, Oct. 12.
“We are pleased to see that investors are recognizing the importance of doing their homework when it comes to investing,” said Natalie MacLellan, investor education and communications co-ordinator at the Nova Scotia Securities Commission. “We will continue to work hard to ensure investors in Nova Scotia have the skills and knowledge required to do this type of research.”
To promote these resources, and in recognition of Investor Education Month, the commission is holding an online trivia contest called Invest in Education. Nova Scotians can enter the contest on the commission’s website (www.beforeyouinvest.ca), on Twitter (www.twitter.com/B4UInvest) or on the commission’s Facebook page.
The commission will post daily investing-related quiz questions. Entries will also be accepted through the comments section of the Before You Invest blog.
Participants may submit one entry per website, per day, for weekly prizes of personal finance books and resources. A grand prize of an Amazon Kindle WiFi will be drawn from eligible entries at the end of the month.
The 2010 Survey on Retirement and Investing was conducted by Ipsos Reid on behalf of the Canadian Securities Administrators (CSA) and released as part of Investor Education Month. The survey took place between August 16 and 19, 2010 and has an estimated margin of error of +/-2.4 percentage points 19 times out of 20.
]]>Women are often perceived as less savvy investors. Maybe it goes back to the old myth that girls can’t do math? This view has always frustrated me. But then I am a woman working in finance, who is rather quite good at math, a skill I inherited from my mother who used to earn 100% on her university calculus exams! (I am not THAT good at math, but she is.)
The whole women aren’t good with money myth is a holdover from the days when we weren’t even allowed to have our own money. Women are just as good at managing finances as men, and it is starting to show. Many of the most well-known financial writers, teachers and leaders in Canada are female: Sherry Cooper, Executive Vice President and Chief Economist, BMO Financial Group; Gail Vaz-Oxlade, of TVs Till Debt do Us Part; Lesley Scorgie , author of Rich by 30 and Rich by 40; and Patricia Lovett-Reid, Senior Vice-President, TD Waterhouse (just to name a few).
TD Waterhouse recently released the results of its 10th annual Female Investor Poll, which showed that 61% of women in Atlantic Canada have savings and investments in their own name. 24% of married (or common-law) women have completely separate bank accounts from their partner and 43% have a joint account as well as separate accounts, showing increased financial independence.
Now, it is not all good news. Only two-in-ten women in Atlantic Canada (18%) have a financial plan, the lowest figure in Canada (vs. 29% nationally). Infact, according to the CSA Investor Index 2009, only 25% of Nova Scotians, male or female, have a financial plan, so that is something we can all work on.
What is your story? Women: how comfortable are you managing your finances? Men: do the women in your household play a role in managing the finances?
]]>The requirement for a person or company to register as an adviser in Nova Scotia to advise Nova Scotia residents on the buying or selling of securities has been in the Securities Act since it came into effect in 1987. In September of 2009, the Canadian Securities Administrators adopted National Instrument 31-103, which was intended to harmonize registration requirements across the country (previously, requirements were slightly different in each province or territory). Firms were given a one-year transition period in which to comply with the changes.
In some jurisdictions, this means stricter rules, but in Nova Scotia, the rules are still the same. An adviser must be registered in the province if he or she wishes to advise Nova Scotia clients about buying or selling financial products.
Whether US brokerage firms choose to operate in Canada is a business decision, based on weighing the costs of registering with the profit to be gained. The announced amendments to the rules may have prompted them to reconsider their operations here, but there is no new law restricting them from doing business in Nova Scotia.
]]>Miranda at Financial Highway asks an important question: Do you trust your neighbour for investment advice?
Frugal Dad gives advice for Setting up your finances as a couple.
Invest It Wisely takes on a commonly held belief in Is it really that expensive to eat healthy food?
Canadian Dream: Free at 45 discusses the pros and cons of early retirement in Is it worth it?
In a guest post at the Canadian Personal Finance Blog, Roger discusses 10 Personal Mistakes as Confessed by a Financially Inept Person.
And in an amusing post to end the week, the Balance Junkie shares Financial wisdom from the Princess Bride.
Also worth checking out, though not a blog post, this week the Task Force on Financial Literacy released What We Heard a summary of the presentations, submissions and comments the Task Force received from Canadians during public consultations in every province and territory and online.
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