Recent Blogs

US Equities making record highs, Greece on the last straw and Oil stockpiles at an 80 year high – what is next ?

Volatile oil prices and a strong economy - Is crude establishing a bottom ?

Are economies slowing down or is this just an economic readjustment

Canadian Dollar, and interest rates globally – Where is this going ?

Read more...

Conflict Policy

SCHWABEN CAPITAL GROUP LIMITED
STATEMENT CONCERNING CONFLICTS OF INTEREST WITH RELATED ISSUERS AND CONNECTED ISSUERS AND AS TO CERTAIN RELATIONSHIPS AND THE POLICIES AND PROCEDURES ADOPTED TO MINIMIZE THE POTENTIAL FOR CONFLICT OF INTEREST RESULTING FROM SUCH RELATIONSHIPS March 8, 2010

INTRODUCTION

The securities laws of the Province of Ontario require securities dealers and advisers ("registrants"), when they trade in or advise with respect to their own securities or securities of certain other issuers to which they, or certain other parties related to them, are related or connected, to do so only in accordance with particular disclosure and other rules. These rules require dealers and advisers, prior to trading with or advising their customers or clients, to inform them of the relevant relationships and connections with the issuer of the securities. Clients and customers should refer to the applicable provisions of these securities laws for the particulars of these rules and their rights or consult with a legal adviser1.

In addition, Rule 31-501 of the Ontario Securities Commission requires that where a registrant has an officer, director or principal shareholder that is an officer, director or principal shareholder of another registrant, the registrant shall adopt policies and procedures to minimize the potential for conflict of interest resulting from such relationships. The registrant is also required to disclose to clients in writing the details of such relationships and the policies and procedures adopted to minimize the potential for conflict of interest resulting from such relationships.

General

In its capacity as an advisor providing investment counselling and portfolio management services, Schwaben Capital Group Limited ("Schwaben”), may advise and act for a client in connection with securities transactions where the issuer of the securities or an other party to the transaction is a firm or a party having an ownership interest in or some other relationship to Schwaben, or vice versa. Since these transactions and relationships may create, or be perceived to create, a conflict between the interests of Schwaben or its associates and the interests of a client, Schwaben is required by securities law to disclose to clients relevant information relating to such transactions and relationships, including the policies and procedures adopted to minimize the potential for conflict of interest resulting from such relationships. These disclosures must be made if Schwaben advises a client, or exercises discretion on a client's behalf, with respect to securities issued by Schwaben, by a related party or, in the course of an initial distribution, by a connected party. In these situations, Schwaben must disclose its relationship with the issuer of the securities. Schwaben must also make disclosure to a client where it knows or should know that, as a result of its acting as a client's adviser, or of its exercising discretion on a client's behalf, securities will be purchased from or sold to Schwaben, an associated party or, in the course of an initial distribution, a connected party. This disclosure is required to be made by Schwaben to each client initially upon establishment of the client's account with Schwaben; if there are any significant changes to this disclosure, before effecting a trade for or providing advice to a client; and once in each twelve-month period thereafter. In particular:

  1. where Schwaben advises a client with respect to the purchase or sale of securities in the types of transactions described above, the disclosure must be made prior to giving the advice; and
  2. where Schwaben exercises discretion under a client's authority in the purchase or sale of securities for the client's account, it may not exercise that discretion for the types of transactions described above unless it has obtained the client's prior specific and informed written consent.

The applicable laws set forth detailed definitions of terms such as "associated party", "connected issuer", "influential security holder", and "related issuer" all of which are intended to define relationships which may give rise to, or be perceived to create, a conflict between the interests of Schwaben or individuals, firms or entities associated, connected or related to it, and the interests of a Schwaben client. This statement contains the mandatory disclosure as well as additional information regarding issuers which may not be related or connected as defined for the purpose of the applicable laws, but have a connection that Schwaben considers should be disclosed. The current list of parties which Schwaben considers should be disclosed is attached to, and forms part of, this document. Such parties that are issuers of securities are, for convenience, referred to below as "Schwaben Issuers".

Any individual who is a partner, director, officer, employee or independent contractor of Schwaben, or of any affiliate of Schwaben, who participates in the formulation of, or has access prior to the implementation of, investment decisions made on behalf of or advice given to a client is referred to below as a "responsible person".

Relationships, Connections and Policies and Procedures Adopted to Minimize the Potential for Conflict of Interest

  1. It is Schwaben's policy not to advise a client, or exercise discretion on a client's behalf, with respect to securities issued by Schwaben itself.
  2. Schwaben's investment counselling and portfolio management activities include the sponsorship, creation or management of investment fund products, all of which would be Schwaben Issuers. Where appropriate, in light of a client's objectives and constraints, Schwaben may recommend the purchase of securities of Schwaben Issuers to its clients, or Schwaben may exercise discretionary investment authority to purchase securities of Schwaben Issuers on behalf of a client, provided always that such securities are suitable as determined by the unique circumstances and needs of the client as set out in the Statement of Objectives and Investment Policy established for the client’s account, as revised from time to time. Schwaben may receive distribution or other fees in such cases.
  3. Directors, officers, employees and independent contractors of Schwaben may, from time to time, hold positions in securities that are also held in client's accounts.
  4. Schwaben will not knowingly cause any client account to:
    • invest in the securities of any issuer in which a responsible person or an associate of a responsible person is an officer or director unless such office or directorship is disclosed to the client and the prior written consent of the client to the investment is obtained;
    • make a loan to a responsible person or to an associate of a responsible person;
    • purchase or sell securities from or to the account of Schwaben, any affiliate of Schwaben or any responsible person, or from or to the account of an associate of a responsible person.

If a client requires further information concerning the relationship between Schwaben and any of the Schwaben Issuers or other entities identified on the attached list, or if a client has any questions, the client should contact Schwaben at:

Schwaben Capital Group Limited 3811 – One Palace Pier Court
Toronto ON M8V 3W9
Telephone: 416.503.7633
Facsimile: 416.503.7637

Schwaben Issuers and Associates

The following is a list, as at the date above, of parties that may be considered to be related and connected issuers and associates of Schwaben (as well as issuers which may not be related or connected as defined for the purpose of the applicable laws, but have a connection that Schwaben considers should be disclosed) for the purposes of the Statement Concerning Conflicts of Interest with Related Issuers and Connected Issuers and as to Certain Relationships and the Policies and Procedures Adopted to Minimize the Potential for Conflict of Interest Resulting from Such Relationships.


Name of Issuer/Associated PartyNature of Relationship to Schwaben
Schwaben Financial Counsel Inc.Albrecht Weller is President and portfolio manager of Schwaben Capital Group Limited. He is also President of Schwaben Financial Counsel Inc.. Schwaben Financial Counsel Inc. is a Life Company that is licensed with the Financial Services Commission of Ontario to sell life, accident and sickness insurance as well as annuities and segregated funds. At times there may be instances where there may be instances where a solution may be a portfolio management solutions offered by Schwaben Capital Group Limited or through an annuity, segregated fund or life insurance policy offered by Schwaben Financial Counsel Inc.

People

Our business is all about people. clients as well as our employees. It is our employees that work to meet the financial services needs of our clients and it is our clients' trust in us that has allowed us to grow ou....

Investment

Our investment philosophy is value based. We seek long-term shareholder value in the companies we invests in. We invest in successful businesses rather then just stocks and bonds. We look for long-term shareholder v....

Capital

Over many years of experience, the partners of Schwaben have realized our client’s diverse needs. Successful entrepreneurs do not just have a need for asset management and financial and estate planning.