Posts Tagged “investments”

Zero tolerance against breach of ethics

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    FSCA has adopted a policy of Zero tolerance against breach of ethics. What is unique about this policy is that it does not target advisors. This policy target employees of insurance companies and employees of the provincial regulators. This is because we have come to the conclusion that breach of ethics are not…

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Regulatory wars: the perfect catalyst for regulatory changes

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http://www.amazon.ca/gp/product/B00PR35MEO?*Version*=1&*entries*=0   Only 5% of the taxes and fees collected by the states (US) or the provinces (Canada) is used to regulate the insurance industry. 95% of what is left goes into general revenue and can be considered as profits to the states or provinces. It is therefore simple to conclude that the states or…

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Morello v. Nesbit Burns: Selling the impossible and the unknowable…

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http://www.amazon.ca/gp/product/B00PR35MEO?*Version*=1&*entries*=0   Universal Life was supposed to have been simple where the insurance would be unbundled from its investment component. However this has never truly happened and instead there are many links between these two elements. They are inseparable and indivisible and this gives an open door to the insurer to use the investment to…

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Why consumer protection, representation and oversight are needed in the insurance industry?

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Why do I believe FSCA is necessary? For the last few years as a consumer advocate I was involved in many cases which clearly demonstrate that some changes are needed. The compelling evidence in my possession made me believe this was going to be a “walk in the park.” However I was extremely surprised by…

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Proposed changes to prescribed annuity taxation: the truth is in the numbers…

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This text has been move to our new blog on Financial Services Consumer Aliance Proposed changes to prescribed annuity taxation are hidden in the proposals for changes in the exemption test of life policies. The proposal in regards to annuity taxation would modify Subsection 300(2) of the Income Tax Regulations. Under current regulations, the taxable income…

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Insurance: Is the income accumulating within a life insurance policy truly exempt?

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For example, is the income earned within a Universal Life policy not subject to accrual taxation? If we based our answer on what we read in newspapers and in marketing brochures from insurers and firms, the answer is quite obvious.  Insurance is exempt from accrual taxation: Globe and Mail on April 15, 2011: “One is…

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MILLENIA HOPE PUMP AND DUMP: THE WHOLE STORY AND UNTOLD PART OF THE STORY

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COMING SOON! Millenia Hope: A company that started its corporate life by claiming it had a new medication for the treatment of malaria which ended this corporate life with one last bid and claim; trying to buy the professional soccer team of the city of Bari, Italy on the basis of its last annual 2008…

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Should we get rid of (simple) marginal tax rates?

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In Quebec, advisors are now starting to understand the concept around the difference between efficient marginal tax rates and simple marginal tax rates with the publication of the Laferriere/Chartrand tax curves that are now freely available on the site of the CQFF.   http://www.cqff.com/claude_laferriere/accueil_courbe.htm   Most advisors and financial planners only consider efficient taxation at…

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