The Globe and Mail - 30.07.2019

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INVITATION FOR OFFERS

PREMIUM CONDOMINIUM OR RENTAL APARTMENT

DEVELOPMENT NEAR OTTAWA AND KINGSTON, ONTARIO

The Fuller Landau Group Inc. in its capacity as Court-appointed Receiver

of Homes by Design Inc., is soliciting offers for the purchase of a property

development known as the Avonlee Condominiums, located on 2.23 acres

of land, Town of Perth, Ontario. Phase 1 is substantially completed and

consists of a 3-story building with 26 luxury apartments, elevator, heated

underground parking and storage, a community centre, with gym area, and

residual land for the construction of Phase II.

Offers are being solicited pursuant to a sales process approved by Order of

the Court on July 25, 2019. An information package regarding the particulars

of the property, and the terms and conditions of sale are available upon

request. Please contact Mr. Joshua Samson at (416) 645-6535 or jsamson@

fullerllp.com to obtain further information and to arrange an appointment

to view.

The Fuller Landau Group Inc.

Licensed Insolvency Trustee

151 Bloor St. W., 12th Floor

Toronto, Ontario, M5S 1S4

Tel: (416) 645-6500

Fax: (416) 645-6501

AxelSpringerSE

Berlin,GerGany

NoticeofExeGptforJointStateGentonForeignTake-OverBid

The joint statementof theGroup works counciland the SEworks

council ofAxelSpringer SEpursuanttoSection 27 para.2of

theGermanSecuritiesAcquisitionand TakeoverAct(WpÜG) on

thevoluntarypublic takeoveroffer(cashoffer)of TraviataII

S.àr.l.,Luxembourg, tothe shareholdersofAxelSpringer SE

for the acquisition ofallregisteredno-parvalue sharesofAxel

Springer SE(ISIN:DE 000550135 7 (listedAxelSpringer shares),

ISIN:DE 0005754238 (unlistedAxelSpringer Shares)) inaccordance

withGermanlaw,isavailableonthewebsiteofAxelSpringer SE

at go.axelspringer.com/kkrin Germanandatgo.axelspringer.com/

kkr_enasanEnglishconveniencetranslation. Inaddition,copiesof

the joint statement are availablefordistributionfreeof charge by

contactingAxelSpringerSE,InvestorRelations,Axel-Springer-Straße

65, 10969 D-Berlin,Germany,Tel:+49 (0) 30 2 591 - 77401 ,Fax:+4 9

(0) 30 2 591 - 774 22.

Berlin,July 30 , 2019

AxelSpringerSE

B6| REPORTONBUSINESS OTHEGLOBEANDMAIL | TUESDAY,JULY30,2019

The quality of advice the average
investor is getting from financial
advisers calls into question the
fee structure for that profession,
says a new report from the Onta-
rio Securities Commission’s In-
vestor Advisory Panel.
The report, published Monday
by the IAP – a nine-member body
with an arm’s-length relationship
with the OSC – says a “large pro-
portion” of investors with small
or medium-sized portfolios are
not getting timely and relevant
investment advice. For instance,
of the 3,083 Canadians surveyed,
49 per cent of those with portfo-
lios worth $50,000 to $100,000
said their adviser spent less than
an hour communicating with
them during the past year.
This despite the prevalence of
so-called trailing commissions –

embedded fees that make up a

portion of a fund’s management

expense ratio (MER), the report

notes.

Investor-rights advocates have

long decried the use of embed-

ded commissions, which are paid

out to advisers as long as an in-

vestor holds a fund. The main

concern is whether such a com-

pensation model creates a con-

flict of interest, with advisers dri-

ven more by the commissions

than the best interests of their cli-

ents.

Last June, Canada’s securities

regulators announced they

would curtail trailing commis-

sions collected by discount bro-

kerages, but they stopped short

of banning such fees entirely. The

changes have yet to come into ef-

fect.

The investment industry op-

poses a ban on trailing commis-

sions, arguing that it would result

in many investors losing access to

professional advice.

The IAP report, which was

based on an online survey con-

ducted in March, 2019, found that

43 per cent of respondents did

not agree that their adviser had

properly discussed financial con-

cepts with them. Only 20 per cent

said they had received advice

about budgeting or debt manage-

ment.

“In our view, therefore, it is not

at all clear that preserving the

availability of trailing commis-

sions will ensure investors with

small and medium-sized portfo-

lios get access to advice that

meets their needs,” the report

reads.

“By contrast, we believe the

survey results offer clarifying evi-

dence, as outlined above, about

significant shortfalls in the scope,

timeliness and effectiveness of

the advice many of these inves-

tors receive. We hope policymak-

ers will use this evidence to assess

the degree of risk actually posed

by a ban on trailing commissions,

and to assess whether that risk is

outweighed by the benefits to be

gained from eliminating known

harms caused through the use of

trailing commissions.”

The Canadian Foundation for

Advancement of Investor Rights

(FAIR Canada) has opposed the

use of embedded commissions,

and its founder and interim exec-

utive director said he wasn’t sur-

prised by the results of the IAP

survey.

“We’ve been concerned for a

long time that most investors

who go into financial institutions

for financial advice don’t receive

particularly individualized in-

vestment advice,” Ermanno Pas-

cutto said in an interview. “Most

of the time they’re just sold a pre-

set package of the firm’s proprie-

tary products. Invariably these

are high-fee mutual funds.”

Paul Bourque, president and

CEO of the Investment Funds In-

stitute of Canada, said that some

of the survey’s results were posi-

tive. For instance, 87 per cent of

respondents said they are com-

fortable speaking with their in-

vestment adviser, and 84 per cent

said they are satisfied that their

adviser responds to their ques-

tions promptly.

“We are encouraged by these

results and glad to see that re-

gardless of wealth levels, inves-

tors are receiving important as-

pects of financial advice,” Mr.

Bourque said in an e-mail. “How-

ever, more could be done to un-

derstand investors and what they

feel is important to them.”

In the past, Mr. Bourque has

said that banning trailing com-

missions would eliminate the

most common way small retail

investors pay their advisers, add-

ing that there are already mecha-

nisms in place to address con-

flicts of interest.

Averageinvestorsaren’tgettingenoughhelp

fromtheirfinancialadvisers,OSC surveysays

ALEXANDRAPOSADZKI
CAPITALMARKETSREPORTER

The company said it expects net

revenue to rise more than 170 per

cent to US$240-million in 2019,

up from the prior US$210-million

it had forecast just last month.

The El Segundo, Calif.-based

company reported a net loss of

US$9.4-million, or a loss 24 US

cents per share, compared with a

loss of US$7.4-million, or a loss of

US$1.22 per share in the year-ago

period.

Karen Formanski, an analyst at

Mintel who authored a consumer

research report on plant-based

protein, said there were no signs

of the meat alternatives market

slowing, with 38 per cent of U.S.

consumers trying to add more

plant-based protein to their diet.

“But with growing competi-

tion, criticism over processed

food and clean eating getting

more important, companies will

have to adapt and offer more va-

riety than just burgers,” Ms. For-

manski said.

Mr. Brown on Monday rejected

growing criticism over Beyond

Meat’s products being overly

processed and unhealthy, saying

it was not a question of whether

they were processed but how.

The company seeks to further

diversify its protein sources with-

out relying on genetic modifica-

tion, Mr. Brown said.

“There are an almost endless

amount of crops you can pull

from ... and it is really important

that Beyond is leading the effort

of bringing new proteins into the

market,” Mr. Brown said.

Analysts during Monday’s call

pressed Beyond Meat executives

for details on looming supply-

chain bottlenecks as demand

continues to surge.

Mr. Brown said the company

would expand its in-house manu-

facturing facilities in Missouri,

buy new equipment, while con-

tinuing to outsource the packag-

ing of its products by adding new

partners.

“That’s not to say we won’t

have some periodic disruptions

that may create temporary short-

ages,” the CEO said.

rEUTErs

Beyond Meat

FROMB1

Passenger regulations that went into ef-
fect on July 15 require airlines to compen-
sate passengers up to $2,400 if they are
denied boarding for reasons within the
carriers’ control; to pay as much as $2,100
for lost or damaged luggage; and to write
clear policies on carrying musical instru-
ments.
Beginning Dec. 15, customers whose
flights are delayed or cancelled due to
non-safety reasons within an airline’s
control will be entitled to as much as
$1,000. Airlines are required to refund
fares to passengers whose flights are de-
layed, or to rebook them on a competing
airline if needed. Airlines also must seat
children younger than 14 near their par-
ents at no extra cost.
The rules establish new standards for
handling passenger complaints, replacing
a patchwork of federal regulations and
airline policies that varied and were often
negotiated complaint by complaint.
Marc Roy, chief of staff for Mr. Garneau,
said thegovernment delayed the imple-
mentation by two weeks because the air-
lines are still struggling to cover their
scheduled flights with the Boeing 737 Max
planes, grounded since March after two
fatal crashes that killed 346 people.
The rules are also being contested by

two advocates for the rights of airline pas-

sengers and of disabled people. They say a

new rule that allows tarmac delays of

three hours violates the rights of disabled

people by denying them the ability to use

an accessible washroom in the airport ter-

minal and by extending their time in

plane seats that endanger their health.

In response, the Attorney-General’s of-

fice said in its court filing it has the au-

thority to make the three-hour rule, and

that the passenger advocates’ argument

in an appeal is “bound to fail.”

Mr. Roy said before the three-hour lim-

it was in force, there were no universal

rules on how long airlines could make

passengers wait on the tarmac. Some had

a maximum 90 minutes, while others did

not address it. The rules also set standards

of care for passengers stuck on the plane,

including providing access to bathrooms,

water, food, constant communication, the

ability to communicate with the outside

world and comfortable temperatures.

“If those conditions are not met, there

is a necessity to return to the gate as soon

as possible,” Mr. Roy said.

“But if those conditions are met then

the operator can have up to three hours

to navigate what problem might be caus-

ing the delay.”

“How is the passenger better served if

the airplane has to go back to the gate,

unload everyone and get them back into

the terminal to meet a strict 90-minute

limit of tarmac delay, only to ... then have

to re-embark the plane only to go back to

that lineup for de-icing?”

Airlines:Ruleallowingthree-hourtarmacdelaysbeingcontested

FROMB1

RegulationsthattookeffectonJuly15

requireairlinestocompensatepassengers

asmuchas$2,400iftheyaredenied

boardingforreasonswithinthecarriers’

control.ryANrEMIOrZ/THECANADIANPrEss

“Both [Mr. Brace and Mr. Moore] were
business builders, but from a different
generation,” Mr. Yigit said in an e-mail on
Monday. He said Rogers could benefit
from having “someone with a digital-first
pedigree and background run media –
one can even say it’s about time.”
After several rounds of layoffs in recent
years, Rogers sold its struggling magazine
publishing division, which includes titles
such as Maclean’s and Chatelaine, in
April.
It also cut an unspecified number of
off-air jobs at Sportsnet in June and can-
celled the expensive annual showcase of
the coming TV broadcast season known
as upfronts.
In recent years – and after spending
$5.2-billion to acquire 12 years of national
broadcast rights for the National Hockey
League in 2013 – Rogers has shifted the
focus of its media business toward sports

as it hopes that the live entertainment

can keep viewers tuning in. In a state-

ment on Monday, the company said Mr.

Banks’s mandate will include “driving

growth across sports and local [news] in a

digital world.”

Mr. Banks, who is a lawyer by training

and started his career at Goodmans LLP,

also led eBay Canada, spent time running

JumpTV (an internet-based sports broad-

caster), and worked on international busi-

ness and licensing for the NHL Players’

Association. He left Facebook Canada in

2017 and has a business advising and pro-

viding capital to early-stage tech compa-

nies.

“Jordan is a globally respected and

transformative digital executive who will

build on Rick’s legacy to drive future

growth,” Joe Natale, chief executive of

Rogers, said in the statement.

Jacob Glick, who was chief corporate

affairs officer at Rogers from 2014 to 2017,

praised the appointment on Twitter.

“Congratulations to Jordan. This is a

tough job in a rapidly changing industry.

But there is a great team of people at Rog-

ers Media to support him,” he wrote. Mr.

Glick is now general counsel at North Inc.,

a scale-up firm based in Kitchener, Ont.,

that makes smart glasses.

Of Mr. Brace, Mr. Natale said in the

statement, “Rick is a seasoned business

leader who measurably reshaped our

media business for the future, and I

would like to thank him for his many ac-

complishments.”

Mr. Brace joined Rogers in 2015 after

spending more than a decade at rival Bell

Media, where he held a number of roles,

including president of CTV. He also

helped found Canada’s other major sports

specialty channel, TSN, in the 1980s and,

before that, held technician and TV pro-

duction roles at the CBC.

ROGERS COMMUNICATIONS (RCI.B)

CLOsE: $69.85, UP 26¢

Rogers:Bankstaskedwithboostingsports,localnewsgrowth

FROMB1