How safe is your investment – or not.
For Your Information – Segregating your nest egg.
Segregation – The safekeeping of a customer’s securities in a separate location when the securities have been paid for in full. Segregated securities may not be commingled with the securities of the broker-dealer and they may not be used by the broker-dealer to collateralize loans.
What you will find in the small print of your account statement:
(eg.) Any free credit balances (excluding registered plans) represent funds payable on demand which are not segregated and may be used in the conduct of our business.
Segregated securities may be used by the registrant, by sale or loan, whenever a client becomes indebted to a registrant but only to the extent reasonably necessary to cover the indebtedness.
You will receive a interest payment, in most cases, on any cash sitting in your account. Albeit, is the 1-3 % you receive, justify the risk you take it not having your monies segregated???
Ontario Government to appoint a committee to conduct the next review of Ontario’s Securities Act. (see Ontario Budget 2008)
The question is; why bother??? The majority of the recommendations from the last review, even though tabled to the legislative in October 2004, have still not been implemented. Obviously the current government holds little regard for the 700,000 investors who were represented at the 2004 Finance Committee Hearings. What a waste of time, energy and taxpayers’ money.
Dwight Duncan and Gerry Phillips are directly to blame. Let’s hope the Finance Committee is not loaded up with Liberal MPPs because they are not blameless – for they continue to remain silent even though they formed the recommendations at the 2004 Finance Committee Review 3 1/2 years ago.
Ontario ponies up millions for financial education
28 March 2008
Great, I hope all the MPPs, including the Finance Minister, sign up for the course. Hell, I’d even pay higher taxes – that would be money well spent.