Winter 2010 w w w. n f s a .

c o m

FUTURE
ENERGY
SCARCITY
Can the Markets Survive?

FEATURE
INTERVIEW WITH
JEFF RUBIN
Former Chief Economist for
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Your World Is About To Get
A Whole Lot Smaller

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E D I TO R ’ S N O T E
EDITOR-IN-CHIEF David Alexander

Dear NFSA Community, ARTS DIRECTOR David Tal

I
STAFF WRITERS David Tal
t seems somewhat anticlimactic to have the Winter 2010 Edition Hyungsub Moon
Saif Qureshi
of the Arbitrage come out when it’s distinctly NOT winter. Pawan J. Shamdasani
Nicki Mossavar-Rahmani
Nonetheless, the Arbitrage is back, better and fatter than ever. Luis Marquez
Jessica Vitullo
For this issue, we’ve explored the topic of energy and re-
PROOFREADER Peter Parker
source scarcity. And to start this topic off with a bang, we’ve been
fortunate enough to land a feature interview with Jeff Rubin, for- PRODUCTION COORDINATOR David Alexander

mer Chief Economist for the CIBC and current bestselling author of GRAPHICS DESIGNERS Andrea Barros
Luis Ernesto Rojas Gonzalez
Why Your World Is About To Get A Whole Lot Smaller. For thirty min- Akil Worrell
Courtney Bellemore
utes, we discussed his views on Peak Oil and general energy scarcity Alina Klinaeva
David Tal
issues—topics which if you don’t know much about, trust me, you’ll Rustem Safin

be living them soon enough. PHOTOGRAPHERS David Tal

On top of these subjects, we have two feature articles CONTRIBUTORS Wallie Seto
about entrepreneurship for those interested in starting up their Pranavan Ganeshalingam
Alex Lee
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 13 FINANCE Trading Stocks in Business: Where Is portunities In Fi-
Oil History Visuali- the Underground The Boundary? 43 nancial Services A
zation. 14 | Fuel Economy The OTC | Conservative Perspective from a
Use of Various Markets. Versus Liberal Vi- Recent Grad. 56 |
Modes of Trans- sualization. 10 Hot Networking
portation Visuali- 33 CANADA Tips Making that
zation. 15 | Energy Goes Green 45 EDITORIALS & Next Contact Just
Future Forecasting Ontario’s New OPINIONS Got a Whole Lot
How to Use Pri- Green Energy Act The World Need Easier. 16 | NFSA
mary Research to and its Deal with Not Thirst Fresh- Career Planner 2.0
Predict Future Samsung. water Shortage: A Wealth Manage-
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World Why Cana- on the Tap We ture of Innovation. filiates.
dian Banks Sur- Drink Everyday.
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27 INDUSTRY Event Recap
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 There is an assumption many on this Earth share—one that says the
world revolves around money. It doesn’t. It revolves around oil. Cheap
oil. And without it, the gears that run this current globalized economy
will come screeching to a halt.
Over the last few decades, ever since M. King Hubbert made his seminal
1956 speech to a gathering of the Petroleum Association of America, in
San Antonio, there have been some who have warned about a time when
the demand for petroleum will outpace supply, i.e. when we need more
oil than we can produce. Unfortunately, today’s experts predict that this

E
future is soon upon us.
And this future has a name: peak oil.
While our politicians shy away from discussing it and much of the
mainstream media still barely cover it, peak oil remains a reality. The
fact is oil is a finite resource (i.e. it won’t last forever). Over the past
three decades, there have been fewer and fewer oil field discoveries
made every year (ASPO). And many geological reports are also beginning
to indicate a steady decline in the absolute quantity of petroleum extracted
from the world’s largest oil producing states (World Energy Outlook 2004).
Altogether, many geologists and former oil industry employees are predicting
BY DAVID TAL, STAFF WRITER that within the next decade, production of oil will peak and oil shortages
DESIGNED BY ANDREA BARROS will begin to become commonplace. This will have serious social and
economic repercussions—effects that will need urgent legislative and
technologically innovative measures to overcome.

NFSA.ca | Winter 2010 | Arbitrage 8

SIZING THE ISSUE
To get a sense of how important
cheap oil is, how ingrained it is in
every aspect of our society, let’s
take a look back to the waning
months of 2008. While much of the
world was wrapped up in the drama
of whether Obama was going to win
the primary, much of the world was
also rapt with worry over the price
of gas (by July, 2008, it sat at $147
US a barrel). In some places, it got
to the point where talking about oil
became like talking about the
weather. What you did, how you
lived, began to depend more and
more on how high the price of gas
rose.
And with good reason.
For those living in suburbia, the
cost of commuting became
unaffordable. This triple-digit rise
in gas prices led to less money in
people’s pockets, meaning less
money to spend on everyday goods—
thereby hurting businesses, causing
layoffs and ultimately bankruptcies.
We saw this drawn out most in the
crippling of the auto industry and
similarly, to the airline industries.
This dip in consumer spending
wouldn’t have been so bad were it
not for the rabid inflation that
accompanied this spike in oil prices.
In the United States, the headline
consumer price inflation rate rose
from around two per cent to almost
six (tradingeconomics.com). But
why would this be so? How is the
price of oil tied into the price of
food and other everyday goods?
The answer is that modern food
production is dependent upon the
use of petroleum-based pesticides
and fertilizers. Rising fuel costs
then translates to rising food prices.
Modern globalization is largely based
upon shipping goods from countries
where labour cost is low to countries
where the consumers are rich. When
oil prices rise, so too the shipping
costs involved and so too will the
prices of goods reflect that.
9 Arbitrage | Winter 2010 | NFSA.ca
BEHIND THE OBVIOUS
Over the past year, there has been
somebody who has taken these links
one step further. Jeff Rubin, the
former chief economist for the CIBC
and recent author of the bestselling
book Why Your World is About to Get
a Whole Lot Smaller, told the
Arbitrage in a phone interview that
“we have mistaken this recession as
a financial market crisis when, in
fact, it was an energy shock.”
Rubin asserts that as oil prices
rose in the latter months of 2008
(forbes.com), pushing inflation to
ever-greater heights, it forced the
U . S . F e d e r a l Re s e r v e B o a r d t o
increase interest rates to stem that
rise. Unfortunately, that meant
homeowners with high or fluctuating
(subprime) mortgage rates saw their
monthly mortgage payments shoot
through the roof and, for those who
couldn’t afford to pay, that meant
they were out of a home. Repeat
this effect for a few million
homeowners across the United States
and the result was the implosion of
the financial markets, the threat of
a second Depression and the
subsequent bailout of banks and other
financial institutions across the
world.
THE HOOK
This was but one of the insights
Rubin shared during our conversation,
which he also outlines more
thoroughly in his bestselling book.
But what is it about the issue of
peak oil, or energy scarcity, that
attracted his attention so? Why this,
above all other issues in this world,
such as global poverty or climate
change?
“I guess it happened 10 years
ago,” he explained. “I read this
obscure book called, The Coming Oil
Crisis by Dr. Colin Campbell, who,
as a retired geologist, worked for a
number of major oil companies in
his lifetime. Basically, he talked
[oil] depletion … .
“I thought he brought forth a
pretty compelling case. That net,
we were running faster to stand still
(i.e. using more oil to maintain our
current standard of living).
“That’s what sort of got me going.
I’m not a geologist, but, by applying
their research to my [economics]
field, it did get me thinking of some
of the economic implications of peak
oil or depletion.”
Rubin explained further that,
“from the economist’s perspective,
the supply of oil is really a function
of price. For example, when world
prices of oil are $20 a barrel, the
165 billion barrels of oil trapped in
the tar sands of Alberta isn’t really
an economic resource, since
converting tar sands into oil would
cost about four times as much as
what the market is offering. It may
exist geologically, but for all intents
and purposes, it’s not an economically
viable resource.
“But in a world of $80 a barrel,
all of a sudden you’re producing one
million barrels [of oil] a day out
there. And in a world of $200 a
barrel oil, we could see [that rise
to] three to four million barrels … .
“But the paradox of higher energy
prices is that we can’t afford to
consume the new supply that it
brings. The same [oil] prices that
will lift four million barrels a day
out of the Canadian tar sands, for
example, will translate into retail
gasoline prices that will take millions
of drivers off the road.”
“[On the whole, that’s what] I’m
more interested in: what the
economic response to this will be,
how will a rational price-based
economy respond to these kinds of
energy prices when this is the one
commodity that the whole global
economy runs on.”
THE LINE IS DRAWN
Unfortunately, this economic
response might be something the
world will face sooner rather than
later. As of last December, the
International Energy Agency (IEA)
placed a fairly definitive date for
peak oil at 2020, that is if no new
discoveries are made and if oil
demand continue to grow on a
business-as-usual basis. When asked
if this was a sign of some kind, Rubin
was quick to reply.
“If you’re familiar with what’s
happened with the IEA, you’ll realize
that every year, the IEA has dramatically
reduced its estimates of future world
oil supply.”
Rubin then made reference to a
Guardian of London exposé, published
on Nov. 9, 2009, that revealed how
an IEA official admitted that «many
inside the organisation believe that
maintaining oil supplies at even 90
to 95 million barrels a day (to meet
future demand) would be impossible,
but there are fears that panic could
spread on the financial markets if
the figures were brought down
further. And the Americans fear the
end of oil supremacy, because it
would threaten their power over
access to oil resources.
From this admission, it would
seem that the world’s ability to
maintain low oil prices will soon
weaken. This is a conclusion Rubin
shares, as he sees triple-digit oil
prices returning sooner than later.
His concern however, is about the
next time oil prices surge into triple-
digit territory: when it happens, will
“the global economy be in any better
position to withstand those pressures
[the effects of high oil prices] than
it was in 2008.
Rubin explained that “[we’ve
already] run up record deficits,
particularly in the United States.
Billions and billions have been used
to prop up financial institutions.
Now that we have those record
deficits, what’s going to happen is
that the next time triple-digit oil
prices hit us, not only will there be
no more room to stimulate the
economy with further deficits, but
we’ll start to have to pay back our
NFSA.ca | Winter 2010 | Arbitrage
current deficits.
“So, whereas last time triple-digit
oil prices hit, we stepped on the
fiscal accelerator by ramping up
government spending [to] bail out
the home owners, the auto companies
and the investment banks in New
York, this time we’re going have to
be raising taxes and cutting back
spending, and that’s going to be a
lot more challenging.”
THE WAY FORWARD
From everything Rubin thus far
shared, you might be able to see the
overall direction he and many other
peak oil theorists suggest that peak
oil may actually be peak GDP (Gross
Domestic Product). This essentially
means that the economy can only
grow when oil is plentiful; when it
isn’t, our economy, our standard of
living we’ve grown accustomed to,
will be threatened.
But does it have to be this way?
Rubin doesn’t believe so, and that’s
the whole message of his book. “We
can’t stop oil prices from getting
back to triple-digit levels and,
indeed, we won’t be able to stop oil
prices from going even above the
$147 a barrel … . But what I think
we can do, is make sure that when
that does happen, it doesn’t
necessarily have to have the same
kind of devastating impact on our
economy and on our lives than it has
in our past.
“The key to that is by changing
not the nature of what we burn [oil],
but changing the nature of the
economy. So the single largest thing
we can do to immunize the economy
from triple digit oil prices is to go
from the model of a global economy
to a model of a local economy,
because a global economy is an
extremely energy—and in particular
oil intensive—way of doing business.”
So when asked what can be done,
Rubin suggested that the government
should place a price on carbon
domestically to encourage local
producers to find ways to cut their
emissions, while also placing a
carbon tariff on countries with
increasingly large carbon emissions,
such as China and India.
10
 “One thing is very clear, no matter
where you stand on the climate
change debate, there cannot be
anthropogenic global climate change
in this part of the world and not
other on the other side. “If there’s
global climate change for everybody,”
said Rubin, “there’s no point closing
down the Nanticoke coal-fired power
plant on the shore of Lake Eerie and
making Ontario pay double or triple
for power, while China and India are
free to build 800 coal power plants.”
“ … Yo u c a n ’ t a s k y o u r o w n
producers to pay twice. Once for
their own emissions and than to pay
again as they lose market share to
countries that don’t pay for their
emissions.”
Rubin also mentioned the need
for massive investments in public
infrastructure, particularly in public
transit. When the 40-50 million
North Americans are forced to give
up their vehicles over the next
decade, they should at least have a
bus or light-rapid-transit vehicle to
get on.
“You know, what folks don’t
understand is that during WWII,
Detroit stopped making cars and
practically overnight transformed
itself into a munitions factory
making tanks and bombers. Well, if
Detroit could transform itself into
a munitions factory making tanks
and bombers in the 1940s, why can’t
Detroit and Oshawa today transform
themselves and make buses and
light-rapid-transit vehicles instead
of SUVs?”
But when asked if that is all he
thinks can be done, Rubin also made
sure to point out that the government
isn’t our saviour or solution. Instead,
Rubin said, “I see the market as the
solution, frankly. When prices get
[to three digits], we’re going to start
making our own steel again; we’re
going to start growing our own food;
we’re going to start making our own
furniture.
“Because it’s no longer going to
make any economic sense for us to
source our steel and furniture and
food from places like China, because
the savings that we might get from
their labour costs are going to be
11 Arbitrage | Winter 2010 | NFSA.ca
more than offset by the fuel costs
of getting those products to us.”
“So the market is going to bring
a lot of those jobs back home. The
market is going to being a lot of that
production back home. Things will
certainly cost more money—
everything we will make ourselves,
or from our regional neighbours, will
costs us more than what it used to
cost in the world of cheap oil and
cheap wages.
“But I think we’re going to find
that tomorrow’s economy is going
to look a lot different than today’s
economy and not all of the changes
will be negative.”
A BRAVE NEW WORLD
With all this talk of the end of
modern globalization, of a complete
reorientation of our shared economy,
our discussion then turned to what
Rubin envisioned tomorrow’s world
would actually look like.
To start, Rubin made clear that
“in terms of what we eat, the diets
will come more to resemble that of
our parents than what we’re
accustomed to [today].” He then
related how when he grew up in the
’60s, the food people bought was
seasonal. “You didn’t see kiwis,
strawberries, raspberries and
tangerines in January and February.”
When it comes to vacations,
“We’re not going to be able to fly
like we used to before. It’s not that
there won’t be airlines, but the cost
of flying will probably go back to
what it was in the 1960s.” So,
instead of Chiang Mai or Machu
Pi c c h u , Ru b i n e x p e c t s m o s t
Torontonians to visit places like
Algonquin Park or Muskoka.
With respect to suburban living,
“We’re not going to be able to
commute 70 to 80 kilometres back
and forth to work every day in our
SUVs,” predicted Rubin. “We’re
going to have to either find a way
to drive less or work a lot closer to
home.”
Because of these drastic changes
in lifestyle, Rubin noted that “you’re
going to find a lot of those far-flung
suburbs are going to return,
curiously, back into the farmland
that they once were, because they
collapse in suburban real estate
prices and the soaring increases in
imported food, now make it all of a
sudden economically viable again to
raise livestock (here) instead of
shipping it from New Zealand. It
will make it all of a sudden more
important to grow crops, because
people aren’t living 50-60 kilometres
from the city.”
And as for our cities, “ … where
we saw in the last 50 years … urban
sprawl, we’re probably going to see
increasing urban density, … but with
less cars on the road and certainly
different kinds of vehicles that
we’re used to seeing today.”
Assuming a new energy source as
abundant and versatile as oil isn’t
discovered, the next several decades BIOGRAPHY
will represent a difficult transition Jeff Rubin (born August 24, 1954) is a Canadian economist and author.
stage: one from a cheap carbon to He is a former chief economist at CIBC World Markets. He graduated from
a post-carbon age. But it is in those McGill University with a master’s in economics after completing his BA in
times of crisis that we turn most to economics at the University of Toronto. He began his career as an economist
those we love, to those closest to at the Ontario Government Treasury Department where he was responsible
us. It is also in those times when for projecting future interest rates.
we are most willing to reach out to In 2000, he correctly predicted that oil prices would be trading at $50
our neighbour and strengthen the US per barrel by 2005. He then accurately predicted oil would crack the
relationships we need to survive. $100 US per barrel mark by the end of 2007.
With the global economy turning Rubin wrote a widely followed national column in the Globe and Mail,
local, this is exactly what will “Ahead of the Curve,” and he has been a fixture on network coverage of
happen. the federal budget and other key economic events for almost two decades.
The world we will grow up in will He has also made numerous television appearances on ABC, CBC, CBS,
look much different than what our CNN and CNBC. His opinions and insights have appeared on the front page
parents were used to, just as the of the New York Times, as well as the Wall Street Journal, Washington
world our parent’s grew up in was Post, USA Today, Financial Times, BusinessWeek, Newsweek and the
far more different than what their Economist.
parent’s could have imagined. But
paradoxically, as outlined earlier,
the days of tomorrow may also share
many of the qualities most thought
were lost from the days of our
parents and grandparents.
And as the world finds this new
balance, this new way of adapting
itself to this new era, at least we
can feel optimistic in the fact that
we will be able to share our struggles
and our joys together, as we build
ourselves a brave new world.
NFSA.ca | Winter 2010 | Arbitrage 12
 FINANCE

This visualization was first published by Good Magazine (in association with Andrew Price) on July 14,
2008. A purveyor of all things good, uplifting and informative, the NFSA recommends visiting Good's
website, www.good.is, to learn about them and subscribe to their good works and Good Magazine.

13 Arbitrage | Winter 2010 | NFSA.ca

 FINANCE

This visualization was first published by Good Magazine. A purveyor of all things good, uplifting and
informative, the NFSA recommends visiting Good's website, www.good.is, to learn about them and
subscribe to their good works and Good Magazine.

NFSA.ca | Winter 2010 | Arbitrage 14

 FINANCE
FINANCE

FUTURE
FORECASTING

Hyungsub Moon, Staff Writer

For centuries, fortunetellers

have comforted people with a
glimpse of their futures. With
their crystal globe or taro cards,
fortunetellers often spoke about
the future with believed certainty.
In a modern world of finance,
technical and fundamental
analysts are somewhat like
fortunetellers, sans the crystal
globe or taro cards. Instead, they
Graph 1
march with their bar graphs and
primary data and tell you what short-term price levels.   the president of Harbinger Capital
the future should look like. Technical analysis exclusively Markets, came to York University
Technical analysis is often studies past and present prices for an NFSA sponsored lecture to
contrasted with fundamental or rates. Since the economy discuss why technical analysis is a
analysis. Fundamental analysis often does not work in the way useful investment tool. Let’s go
studies various macroeconomic, it should, technical analysis can through a few economic indicators
industry and firm-specific factors provide great insights on economic he outlined in the presentation.
that influence prices. Technical bubbles, investors’ expectations, Studying stock index with
analysis, on the other hand, solely market momentums and a market moving averages and volume
looks at the past and present psychology. Thus, doing technical analysis can provide some insights
prices to predict the future.   analysis on factors that matter on whether you should buy or sell
Many academic curriculums in from fundamental analysis could specific stocks. If you look at a
business schools often exclusively provide better short-term future general index such as S&P 500
focus on fundamental analysis insights on macroeconomic as illustrated in graph 1, it can
as it holistically integrates conditions than doing fundamental also tell you whether you should
various crucial facets of business analysis alone. be investing in stock market in
education. Understanding various Last December, Mr. David Prince, general or not in the short-term.  
factors influencing a business
or economy as a whole can give
executives and government
officials great strategic advantage
and general policy directions.
Therefore, fundamental analysis
is crucial because it tells you
which factors matter.  
However, fundamental analysis
often heavily focuses on theories
and how the economy should be
in the long-term, ignoring how it
is and how it will be in the short-
term. Economic bubbles are great
examples of how fundamental
analysis often fails to account the Graph 2

15 Arbitrage | Winter 2010 | NFSA.ca

 FINANCE

Studying commodity indexes

such as the Spot Raw Industrial
Index (graph 2) and the Uranium
and WTI Crude Oil Continuation
Series (graph 3) can provide
some insights on how commodity-
intensive companies’ earnings will
be affected in the near future due
to the changes in terms of the
supply side.  
Many investors consider rises in
gold prices to be an indication of
economic and political instability.
Inversion of yield curves is also
Graph 3 a great leading indicator for
economic instability as it indicates
that investors are locking in short-
term rates in pessimistic future
expectations.  
Treasury bill rates are also great
indicators of how economic and
monetary policies of governments
around the world will be in the
near future. When the economy
goes into a recession, it is very
common for governments to
lower interest rates to stimulate
the economy as evidenced by
the recent global recession. If
stock markets rebound yet the
government still plans to hold the
Graph 4 low rates, it can send signals to
investors that recovery is perhaps
unstable and that the market is
overly optimistic.  
Other sources of useful
information that may provide
great insights on short-term
macroeconomic conditions are
currency indexes. These can help
investors learn the coming trends
in import and export dependant
industries, which in turn, may
help one predict (to an extent) a
nation’s economic health and the
level of government interference
within it.
As well, manufacturing indices
(such as the US ISM Manufacturing
& Non-Manufacturing Indices,
Graph 5
graph 4) indicate the health of

NFSA.ca | Winter 2010 | Arbitrage 16

 FINANCE
manufacturing industries, which
(indirectly) may shed light on
the future health commodities
suppliers.
Consumer confidence indexes
(graph 24) meanwhile, can shed
light upon the future (short term)
prospects of the retail industry
in particular, which (like a ripple
effect) may shed light upon
the future prospects of retail
suppliers.
Similarly, even indexes of railroad
carloads and shipping can provide
a clue as to the health of certain
sectors, as graphs 5 (Amer. Assoc. Graph 5

of Railroads Intermodal Carloads -

Weekly) and 6 (Baltic Dry Index &
Bloomberg Dry Ship Index - Weekly
- Weekly) show that in the lead
up to the 2009 holiday season,
shipments were the lowest in six
years, indicating that retailers
were predicting weaker sales and
accordingly, buying less to stock
their shelves.
In all, fundamental and
technical analyses have pros and
cons. Depending on forecasting
horizons, one can be more
beneficial than the other. But
winning in the markets depends
on understanding risk and adding Graph 6
a healthy understanding of
technical analysis will help you
learn what you want and can
expect, to help you determine
the most successful investment
strategy for your needs

All graphs were sourced from a

presentation provided by David
Prince of Harbinger Capital
Markets

17 Arbitrage | Winter 2010 | NFSA.ca

 FINANCE

This visualization was created by Jess Bachman and was first published by www.WallStats.com. A graphic
designer that makes complex information look simple through presenting it visually. To see more of his
work, check out his work at www.WallStats.com.

NFSA.ca | Winter 2010 | Arbitrage 18

 FINANCE
Canadian Banks VS
The World
Why Canadian Banks Survived
Unscathed
Andres Pozo, Contributor
Slow, stupid and unambitious.
Short sighted, dull and loan
thwarters. These were just
some of the many unflattering
descriptions the rest of the
financial world deemed
appropriate when describing
Canada’s banking system.
Fortunately, we were not
sufficiently swayed by peer
mockery. As they grew fast and
fat, we humbly kept on trucking.
It would eventually take a global
financial crisis to show the world
that prudence and conservatism
were actually positive attributes
for a banking system. While
many countries’ financial footing
crumbled beneath them, ours
barely had a few cracks. Here’s a
look at what made us ask; Really?
A global financial melt down, eh?
You don’t say … .
Well, credit must be given to
the firm and uncompromising
Canadian regulatory system,
considered the most conservative
in the world. Based on the Basel
Capital Accord in 1988, banks were
required to hold no less than four
dollars in “tier 1 capital” (common
equity, published reserves and
equivalents) for every $100 they
lent out. The regulators in the
U.S. considered a six per cent
ratio more appropriate, while
Canada took it a notch further,
setting theirs at seven per cent.
In reality we have been operating
with 10 per cent, much greater
than the regulatory standard.
This was not simply a case of
deregulation vs. regulation.
19 Arbitrage | Winter 2010 | NFSA.ca
In the past decade, American
banks have not gone through
any deregulation, nor has there
been any further regulation in
Canada. Subprime mortgages
still accounted for seven per
cent of the Canadian market.
Although American banks were
normally more leveraged, higher
capital ratios would not have
necessarily made things better
due to the American banks’ strong
reliance on securitization (selling
mortgages to third parties). This
was done to get these toxic assets
off their books, in order to not
have them counted against their
capital. And so, further regulation
might have encouraged even more
securitization.
In some respects, Canadian
banks are not as regulated as
their American counterparts. For
example, Canadian banks do not
have to adhere to the American
Community Reinvestment Act,
which forces American banks
to extend mortgages to low-
income households. This in turn
brings down their usual leading
standards. We also do not have
the equivalent of Fannie Mae
Image sourced from Wordpress.com
and Freddie Mac, government-
sponsored enterprises, which
heavily provided funding for
subprime mortgages that set off
the melt down.
Another contributing factor to
the stability and cohesiveness
of Canadian banks came when
North American banks became
free to own other financial
institutions. In Canada, the Big
Five swallowed up most of the
large investment houses. Major
banks in America did likewise,
with the exception that each
subsidiary of an American bank
would be subjected to a different
regulatory authority, depending
on its classification (insurance
company, investment bank, or
commercial bank). In Canada they
all adhered to the OSFI to oversee
and regulate the whole entity.
Instead of destabilizing the banks,
the brokers’ absorption into the
banks stabilized the banks. This
was unlike the Lehman Brothers or
Bear Stearns, which did not have
an overseer with deep pockets or
strict regulation to prevent them
from collapse.
Furthermore, it was Canada’s
 FINANCE

stance on bank mergers that kept

us from harm as well. Canadian
banks, like most banks of the
developed world, wanted to
merge and form global banks to
better participate in the global
growth of financial markets. The
Canadian government has always
firmly vetoed these mergers.
The cost of achieving greater size
and presence at an international
level meant that there would be
a reduction of competition in the
domestic market. The Canadian
Competition Bureau indicated
Image sourced from the FinancialPost.com
that such mergers would result
in a decrease for a number of As a result, Canadian banks important reasons to why Canadian
financial products in submarkets, have adopted a more traditional banks were well equipped to
such as: portfolio management, and less risky, domestic oriented handle a global financial melt
credit cards, loans etc. Losing model. This ensured that the down
an important advantage in the consequences for Canadian banks
domestic market for an uncertain when the international financial
share of the financial market was markets froze were minimal.
therefore seen as unwise. And so there you have it, a few

NFSA.ca | Winter 2010 | Arbitrage 20

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PARCHED EARTH
The Coming Age of Freshwater Scarcity

Hyungsub Moon, Staff Writer

David Tal, Graphics Designer
 Ea c
dep h age
enda in h
rece nt on uma
ModerN Society iN its current on the de-
ntly w n c
form cannot exist without oil. cline. in
As such, the oft-discussed possi- short, the
bility of dwindling oil supplies is
natural
t ae i i
considered a doomsday scenario process that
for the global economy. Markets produces freshwater
rise and fall and fortunes are cannot support the ever-
r. liza
made and lost as the price of oil increasing consumption by our
fluctuates. civilization.
it’s hard to believe that there While the availability of oil is
I t
was a time not too long ago a modern concern, access to
e t’s ion ha
when oil availability was a con- freshwater has been crucial to
venience and not a necessity. every human civilization. Be-
Many decades later it creates a tween 6000 and 4000 Bce, four
o s
dichotomy for every modern so- of the world’s ancient civiliza-
ciety. excessive usage of crude
oil is harmful to the environ-
tions emerged along nearby
a rt
rivers. the tigris and euphrates
ment, endangering the living rivers in iraq, the indus river in
standards of humanity.
yet the current standard of
Pakistan, the Nile in egypt and
the yellow river in china pro-
ed to
living of entirely is dependent vided access to one of the most
on the availability of relatively essential elements to human
cheap oil. While we are paying life: freshwater.
much attention to this crucial Back in 2010, we are one step
element, which could lead to closer to ‘peak water’ with no
ecological catastrophe, another clear solution to the growing
key resource is dwindling and scarcity of freshwater for
few are taking notice. Now is earth’s 6.8 billion (and counting)
the time to ask: can humanity inhabitants. if oil fuels the con-
survive without water? veniences of modern life, water
fuels the essence of life itself.
the hiStory While not blatantly obvious to
on a planet covered with some, it is arguably one of the
water, it’s easy to have a com- most serious social and eco-
placent attitude. in fact, nomic problems, one that re-
through the water cycle, the quires urgent attention from
total amount of water on earth politicians, industrialists, envi-
remains constant. But under ronmentalists, economists and
heavy pressure from population even investment bankers.
growth and industrialization, Like the recent financial cri-
the availability of freshwater is sis of 2008-2009, the water cri-
23 Arbitrage | Winter 2010 | NFSA.ca
worldwide inequalities, water
should be viewed in social and
tries like china and india face
not only the supply-side problem
stitute. the study found that
one third of the world’s popula-
economic terms.
Some canadian policy groups
believe that canada is being tar-
but also water pollution issues.
very much like a credit default
tion could be impacted by water
scarcity by 2025. the study’s
in fact, the water crisis works
author, Frank rijsberman also
geted for freshwater exploita- swap with high leverage: the detailed the specific challenges
tion. Linda diebel from the negative effects spread like water scarcity will bring. he ar-
toronto Star published an article water rings in a pond. Since gues that we could expect an-
in 2008 on a study by the Polaris freshwater is heavily used in nual losses equivalent to the
institute (a public policy group) various industrial, commercial entire grain crops of india and
and reported about how unfa- and agricultural production, the the United States combined if
vorable terms in trade long-run equilibrium price level the water consumption contin-
agreements under NAFtA of ‘water-intensive’ products ues the current trend.
have contributed to will rise. Food is one of them. Since agriculture is an ex-
growing exploita- tremely water-intensive indus-
tion of canadian Food VoLAtiLity try, representing 70% of
freshwater to in 2009, the economist rec- freshwater use worldwide, the
sis suit U.S. ognized the pending water crisis price level of agricultural prod-
v
t
ha
inter- in an article titled “A water ucts in the long run could be-
can be warning.” the article discussed come highly unstable.
summa- a study by the Sri Lanka- combined with increasing price
tw
rized as a based international levels for petroleum and raw
problem of Water Manage- materials, there is potential for
unchecked ex- ment in- cost-push inflations. this fur-
nl y r b
cess. Just as the
e
global recession was
e
ther intensifies disparities of
standards of living between the
st
e
caused by excessive developed and developing
l
at i v n
risk-taking in the financial
industry, the water crisis has
countries, as rises in food
price affects the poor
take it ely
been caused by an excessive more regressively
usage of freshwater, far beyond
what natural processes can sus-
fo r
tain in the long term.
ests.
StreSSeS According to
granted.
regional population growth diebel, the canadian gov-
that is disproportional to the ernment agreed to clauses
supply of regional water has cre- within NAFtA that require
ated water ghettos where the canada to allow a defined level
average person has very poor ac- of water export regardless of a
cess to clean, drinkable water. domestic shortage. this cer-
For example, with explosive tainly brings up political discus-
population growth and an ex- sions on water as a political and
tremely limited freshwater sup- economic commodity among na-
ply, drinking water is a costly tions.
necessity in many parts of it is easy to see that industri-
Africa. Meanwhile, canada is alized and developing countries
blessed with massive supplies of all face a problem of freshwater
freshwater that its small popu- management and without a
lation could
exhaust. never
With reasonably
these massive doubt rapidly developing coun-
 For yoUr iNForMAtioN
this visualization was first published by Wired Magazine on April 4, 2008. the article it belonged to was titled “Peak Water: Aquifers and rivers Are
running dry. how three regions Are coping,” written by Matthew Power. the NFSA recommends visiting Wired Magazine’s website, www.wired.com,
to learn about them and subscribe to their good works.
than the rich.
iNdUStry coNcerNS
Not only could the scarcity of
freshwater influence the gen-
eral equilibrium prices for
water-intensive products, it
could also increase volatility of
stocks and bonds related to
water-intensive industry in gen-
eral. the scarcity affects pro-
duction costs (most likely to be
variable costs), which in turn in-
fluence the earnings of a com-
pany.
the quality of stocks and
bonds largely depend on the
quality of earnings as the future
cash flow determines both value
and the credit worthiness of a
company (in case of bonds, a
volatility of cash flow can ad-
versely affect interest coverage
should be treated as a free good
or commodity.
the water crisis affects many
nations in various ways. Nations
in Sub-Saharan Africa and South
Asia do not have sufficient ac-
cess to improved or sanitized
water. canada worries that its
rich reservoir of freshwater
could be exploited through un-
favorable terms of trade with its
neighbor. china is facing a prob-
lem of water pollution as a new
government survey of china’s
environmental problems has in-
dicated increasing water pollu-
tion levels compared to 2007.
What’s even more pressing is
that the water crisis is often
overshadowed by politically
popular issues like climate
change or peak oil, resulting in
relative lack of awareness.
out, water can be approximately
priced from locally tradable
water rights.
however, there needs to be a
clear distinction between the
usage of water in industrial and
commercial production and dis-
tribution for humans. While the
market might efficiently allo-
cate water in industrial and
commercial sense, it might also
further exacerbate the disparity
between the rich and the poor,
as the market value does not ac-
count for social values of water
as an essence of human life, as
dr Vandana Shiva, from the re-
search Foundation for Science,
technology & Natural resource
Policy, pointed out in the recent
online debate held on the econ-
omist website.
investment in technologies

If oil fuels the conveniences of modern life,

water fuels the essence of life itself.
ratios). Private water compa- there are some possible solu- that efficiently create freshwa-
nies can potentially benefit tions to this water crisis, but the ter must also be made to reduce
from the expected scarcity. Fu- first step is increasing global costs associated with desalina-
ture investment appetite will awareness of the problem. in tion process. And with the
likely reflect this change. An short, we need to start a high- proper cost structures, desalina-
example of such change would profile political dialogue on sus- tion can provide much needed
be Watertech capital, an invest- tainable water management. supply of freshwater.
ment bank that specializes in Second, on a more practical each age in human civilization
the water industry. level, pricing water closer to its has been dependant on water.
market value could allocate this it’s only relatively recently that
BALANce scarce resource more effi- we started to take it for
Solving this global conundrum ciently. granted. it’s time to take defin-
is by no means simple. there is A part of the problem with itive actions to preserve one of
an intense discussion on water is that we have so far the most essential elements for
whether water should be priced thought of this valuable and es- our lives before it’s too late.
according to its market value sential resource as a free good.
or—before even discussing the As the article, A water warning
value of water—whether water (2009), by the economist points

NFSA.ca | Winter 2010 | Arbitrage 26

 INDUSTRY

ENERGY & UTILITIES

Pranavan Ganeshalingam
YIC Member & Arbitrage
Contributor
www.yorkinvestmentclub.com

Industry Overview
Energy is the backbone of
modern industrial society, enabling
us not only to light our homes and
drive our kids to school, but to
power factories and heat offices,
creating jobs and wealth. Until
recently, most Canadians took
it for granted that there would
always be an ample, affordable
supply.
In reality, energy can be extremely
volatile. For example, a string
of hurricanes that extensively
damaged American oil production
facilities in the Gulf of Mexico in
the late summer of 2005 showed
how volatile the market can be:
gasoline prices spiked across the
continent, hitting as high as $1.39
per litre in the wake of hurricane
Katrina. That storm knocked out
much of the United States’ drilling
capacity in the Gulf of Mexico and
left southern refineries unable to
turn crude oil into gasoline and
home heating fuel for extended
periods. Facts and fears left
some gas stations in Canada and
the U.S. critically short of fuel, a
reminder that the long line-ups for
fuel from the 1970s could return.
Add to that an ever-increasing
demand for oil from the world’s
two most populous nations—India
and China—and you have a recipe
for volatility.
If you ask ten oil industry
experts how much oil is left in the
world, you might get ten different
answers. Nobody knows for sure.
What they do know is that as the
world’s supply of oil is depleting,
there is only one way for prices to
go: up.
However, market turbulence is
not just limited to oil. Increasingly,
natural gas and electricity prices
are under pressure. Most new
homes in Canada rely on natural
gas for heat, and in electricity-
hungry Ontario, the province
is relying more on natural gas
to produce power as it slowly
relieves its dependence on coal-
fired generators.
As a result, Canada is slowly
becoming a net importer of natural
gas. This was evident during the
summer of 2005, which was one of
the hottest on record in much of
the country. The high demand for
electricity placed the electricity
grid under pressure in Ontario,
which forced the province to buy
power from the United States at a
rate much higher than what it was
capable of charging.
In addition, rising prices
have persuaded governments,
businesses and consumers to
take a renewed interest in other
energy sources, such as nuclear
power, solar energy, wind power,
biomass and harnessing the energy
of tides. Technological advances
in all those fields are beginning to
make these options less costly and
more reliable, although obstacles
still remain.
Despite relatively bearish natural
gas fundamentals, North American
natural gas prices continued their
recovery and are hovering around
$5/GJ. Natural gas continues to
trade at a significant discount
relative to crude oil. In a prepared
statement accompanying the
National Energy Board’s (NEB)
Winter Outlook, the NEB noted
that owing to robust inventories of
natural gas going into the heating
season, Canadians should expect
to see wholesale prices between
$4-$5.50/MMBtu.
Factors putting upward pressure
on natural gas prices are the
declining supply as well as the
improving economic outlook.
Pushing back down on prices will
be the record natural gas storage

27 Arbitrage | Winter 2010 | NFSA.ca


inventory, as well as the potential
for more liquefied natural gas
(LNG) imports coming into North
America if the prices move higher.
In response to low prices this
year, producers reduced drilling
activity and shut in some gas
production. Canadian production
is down, as are exports to the US.
However, the impact on North
American production will likely be
dampened owing to rapid growth
from the US unconventional
supply.
Industry Relevance in Canada
*Canada’s proven oil reserves
are second only to Saudi Arabia’s.
At the end of 2006, Canada’s
remaining established reserves
amounted to 179 billion barrels,
of which more than 95 per cent
are in the form of crude bitumen
in oil sands.
*Crude oil production has been
increasing fairly steadily during
the last two decades. While
conventional resources continued
to account for more than half of
crude oil production, most of the
production growth in recent years
has come from oil sands.
*Canada is a net exporter of crude
oil. Domestic oil is exported
from the western provinces while
the eastern provinces import
international oil. In 2006, exports
reached $38 billion and imports
amounted to $23 billion.
*Canada has an extensive network
of pipelines carrying crude oil to
domestic refineries. The three
main refining centers in Canada
are in Edmonton (Alberta), Sarnia
(Ontario) and Montreal (Quebec).
*Oil is the most important energy
source used in Canada, ahead of
natural gas and electricity. Over
two-thirds of the refined petroleum
products sold in Canada are used
for transportation: gasoline, low-
INDUSTRY
sulphur diesel and aviation fuel. Brampton Networks (electricity
*After a period of low and distributor to urban areas). Hydro
relatively stable prices during the One Telecom markets the group’s
1990s, crude oil prices have risen fibre-optic capacity (broadband)
in recent years in international to businesses, and Hydro One
markets. This has resulted in Remote Communities supplies
energy to 20 remote areas in
Ontario.
Competitive Landscape for Hydro
One Inc.
Demand depends heavily on
the health of the US economy,
including corporate profits and
local government budgets.
The profitability of individual
companies depends on accurate
project bids and efficient
operations. Large companies
have advantages in their ability
to engage in multiple projects
simultaneously and in many types
of construction. Small companies
can compete effectively by
Image sourced from Kent.ac.uk specializing, working in a
limited geography, or serving as
increased revenues for Canadian subcontractors on larger projects.
producers and higher prices for Average annual revenue per
Canadian consumers. industry worker is $290,000  
*In coming years, the Canadian oil
sector will be dominated by the Article first published in the YIC
pace of oil sands development. Newsletter.
New pipeline and refining
capacity will also be required to
accommodate supply and market
requirements.
Company in the Spotlight
Hydro One Inc.
It’s not the one and only, but
Hydro One is by far the largest
power supplier in Ontario,
Canada. Through its subsidiaries,
this crown corporation transmits
and distributes electricity to
1.3 million residential and
commercial customers (including
municipal utilities) in Ontario. Its
primary utility subsidiaries are
Hydro One Networks (transmission
and distribution) and Hydro One
NFSA.ca | Winter 2010 | Arbitrage 28
 INDUSTRY

TRADING STOCKS IN THE

UNDERGROUND ECONOMY

Jessica Vitullo, Staff Writer

THE TORONTO STOCK Exchange (TSX)

offers consumers the opportunity to
invest in a wide variety of reputable
companies. Buyers and sellers are
constantly trading different stocks
at different prices in hopes that this
investment will turn over a higher
profit. All of the transactions made
in the capital market are recorded
and must follow the guidelines the
Canadian government has set to make
sure that trading is done fairly and
legally.
But while the TSX is a public
trading market that cannot hide any
transactions, over-the-counter (OTC)
trading is becoming even more popular
because of its flexibility, prices and
new investors. OTC markets, also
known as the underground economy,
means stocks are sold between buyers
and sellers privately. They are not
recorded or reported like with the
stock market. Trades are privately
made on the CanDeal, CBID or CanPx
markets.
OTC markets provide risky
investments that would not normally
be allowed on the TSX. This is the
sole reason why many companies
choose to sell stocks privately, as
some companies are not large enough
to survive in the bigger markets.
For example, if a company offers
stocks to investors and they are
not sold regularly or the company is
not reputable enough to be publicly
traded, OTC markets or pink sheets
become a way into investing. Pink/
OTC markets give companies the
opportunity to earn more money
and offer consumers new investment
opportunities that the TSX cannot
provide.
Because of this flexibility inherent
in the OTC markets, investors have
been keen on buying and selling
within them to the point where the
Image sourced from http://philsbackupsite.wordpress.com/category/stocks/
amount of Canadian companies
joining these markets doubled at
the end of 2009. As a result, those
companies that joined, big or small,
faced a lot of competition while
seeking the help of the underground
economy.
Overall, the Canadian companies
that joined OTC markets have been
generating a lot of money. As well,
the market is open to both traders
in Canada and the United States,
meaning more money can be invested
across the border. So why wouldn't
all Canadians want to hone in on this
money-making market?
OTC markets house a lot of
companies rejected from the TSX
because their stocks are not adequate
enough to be publicly traded. This is
why Pink OTC Markets, Inc., a market
that trades stocks over-the-counter,
has set up special icons to guide
buyers when purchasing stocks. If the
market believes a particular stock
is not worth buying, a skull with
crossbones is attached to its name.
However, without the OTC markets,
companies are at risk of going without
much needed investor capitol. If this
happens, jobs are at risk of being
lost. yet by trading over-the-counter,
businesses have a chance of surviving
and their employees may continue
to hold their employment, thus
benefiting the economy overall.
As always though, it is up to the
buyers to decide. Investors can turn
a profit from low-priced stocks. It
just takes time, as there are always
fluctuations in the stock market.
But to be sure, the OTC markets are
no secret to anyone. The government
is well aware of the fact that stocks
are being traded outside the TSX and
is also well aware how they do not
follow regulations made for stock
trading.
In all, little is being done to stop
the underground market because
it is simply not a concern for upper
management. Regulators realize
there are more important concerns to
worry about involving the TSX. Plus,
OTC markets give other companies
the ability to make trades. This
aspect of trading is only a sliver of
the entire trade market

29 Arbitrage | Winter 2010 | NFSA.ca

Written by: Saif Qureshi
Design by: David Tal
Copper may Seem like a boring old metal, but it’s As for the demand side, able, or even worse we may ture. large deposits of copper as well
used in many places and is quite useful in our soci- world usage of copper in 2008 run out. The consequences of This is why we must under- but most of the production is
ety. So where exactly is this metal used? Try things was 18.2 Mt and was fore- this are obvious. stand the concept of “peak exported. In Canada, the main
casted to be 18.9 Mt in 2009, First, we will lose the vari- Copper,” which refers to the deposits of copper are in sud-
like piping installations, electrical wiring, building an increase of 3.4%. To add to ous benefits this metal pro- time when the reserves of cop- bury, ontario and in various
construction, household products and of course pen- that, almost 95% of copper vides to our society, such as per are fully depleted. As one areas of British Columbia and
nies. Due to this, the demand for copper is red hot in ever processed has been ex- those abovementioned uses. study estimated, this could be some other provinces. The
the world markets right now, as countries such as tracted in the 20th century. There will also be unemploy- as soon as the year 2068. As copper industry is worth 1.6
China and India continue to expand. In fact, last year The reasons for this growing ment and sectoral shifts in the university students, this may billion in Canada and is domi-
the price of copper increased by 126% and reached a demand include enormous industry due to a changing re- not seem to be an issue right nated by two main players:
population, technological and liance on different metals. now but in the later years of InCo and noranda ltd., who
16-month high in December 2009. industrial growth throughout
However, if demand continues to grow at this rate, the world. Copper usage has If the entire world (lived by) same standards as North
some researchers estimate that we may have less increased exponentially and
than 63 years before we hit peak Copper and fully de- will only increase in the years America … (the world) would not have enough copper to
plete our reserves. to come due to growing de- meet that demand.
mand from emerging markets
Copper Uses years), its recyclability, finish, (e.g. the BrIC nations). This will lead to inefficiencies our lives, resource shortages refine copper in sudbury and
Humans have used copper for environmental friendliness and At this rate the reserves of in the market and could cause such as that of copper could Montreal respectively.
millennia and although over its ease of use. Due to cop- copper are bound to start another economic downturn, have a great impact on our As well, current world re-
time its usage has changed, our per’s useful qualities and low dwindling and prices are bound or an even worse one, if cou- lives. serves are still high and tech-
society still continues to de- price, it is also used in many al- to shoot up, which pled with other re- nology is continuously
pend on this resource and loys such as brass and bronze, means that in the sources shortages, THe WrITInG on THe WAll becoming ever more efficient
probably will even into the fu- which are used in various long run, this which are According to one study, if at mining. 2068 is only an es-
ture. so you might be wonder- places, such as musical instru- metal will bound to the entire world were to live at timate, one of a few, some pre-
ing, “What’s so special about ments and in metal plating. not be occur in same standards as north Amer- dicting copper reserves (e.g.
this metal that we can’t just However, although the outlook v i - t h e ica, meaning they would have using the broadest definition
replace it with something for copper is rosy right now, in fu- same infrastructure for power for reserves) at up to 1.6 bil-
else?” a couple of decades all this transmission, construction and lion metric tons globally.
The reason why Copper is could change. other areas where copper is When copper shortages do
used so much is that it has used, then we would not have occur it might be possible for
some special properties. For THe IssUe enough copper to meet that us to find substitutes for cop-
example, copper is a ductile As of now, copper reserves in demand. This is troubling since per or discover new ways or
and very conductive metal, the world are still high, but the average rate of copper technology for mining copper
which means that it can be unfortunately, copper de- usage per person seems to be reserves that are not currently
shaped and bent easily and mand is growing. According rising in developing countries accessible due to economic or
also that it conducts electricity to the U.s. Geological sur- (likely due to the fact that technological constraints.
very well. This makes it per- vey, in 2005, there were an more electronics are con- As Canadians, we need to es-
fect for the electrical wiring in estimated 950 million met- sumed as incomes rise). pecially consider this in our de-
houses and industrial build- ric tons of world copper re- The silver lining though is cision-making, because Canada
ings. Another metal, which is serves, which would last for that our neighbour, the Us, is has quite a large resource in-
an even better conductor of another 63 years. In 2008, quite secure and lucky as it dustry and future reserves of
electricity, is gold, but copper copper production reached has large reserves of copper. commodities such as copper
is still used more often due to 18.4 Mt (metric tons) and in In the long run, it is self-suffi- will have a large impact on our
the obvious cost advantages. 2009 it was forecasted to be cient because these reserves economy.
Copper has also found its 19.2 Mt. However, these fig- will probably be enough for fu-
place in architecture because ures also include the amount ture demand, since the Feature cover image sourced from the art of
of the material’s long lasting of copper that was recycled, process for recycling copper is Frank Strunk III
nature (e.g. some copper roof which is quite a significant por- quite easy and cheap.
installations last for 200 tion. Canada meanwhile, also has
31 Arbitrage | Winter 2010 | NFSA.ca NFSA.ca | Winter 2010 | Arbitrage 32
 CANADA

ENERGY GOES
GREEN
Ontario’s Latest Green
Initiative; Is It All It’s Cracked
Up To Be?

Jessica Vitullo, Staff Writer

ONTARIO'S GREEN ENERGY
Act (GEA) made the province
more aware of preserving
energy and the environment. In
2006, Premier Dalton McGuinty
proposed a variety of actions
and initiatives in order to make
Ontario think green and provide
renewable energy resources to
the province. The GEA was the
first of its kind in North America,
as Ontario was first in taking a
step in this direction.
This new way of thinking
demonstrated to Canadians
the importance of preserving
energy and how making Ontario a
cleaner, better place to live was
now becoming a priority of the
government. Four years later,
the government has created
yet another initiative that will
revolutionize the energy industry.
Included in this new initiative
are subsidies for the development
of wind and solar energy: the
latest technologies to hit Ontario
markets. But while there are
some great aspects to this plan,
it is hard to decipher how the
financial industry will respond.
While some will be able to
capitalize on the opportunity this
legislation will provide, what will
be the cost to the consumer? The
issue is not strictly as black and
white like we may think.
Premier McGuinty signed a
contract with South Korea, in
conjunction with Samsung, to
generate wind and solar energy
at the beginning of the year. A
total of $7 billion will be spent
Energy minister Brad Duguid, second from right, with representatives from Samsung Thursday.
on the green energy initiative.
Not only will this create a better
environment overall, but a
better, stimulated economy.
The solar and wind energy
will not be ready to go just yet
though. It will take some time
for the project to be established.
But as a result, 16,000 jobs will
be created within the building
and installing of this project.
Plus, over 1,400 people will be
needed within the manufacturing
plants. There will be a total of
two to four the plants built by
2013.
With people working and earning
money, there will be more to
spend, put into the stock market
or even save. When there is
extra money to be spent, it
also leads to a chain reaction of
businesses doing well, earning
money and keeping people
employed. Energy stocks will
get a bounce from investment as
well. But while it seems like the
government’s decision will have a
positive economic effect, will it
(Source: The National Post)
do so for the consumer?
While this initiative will
generate jobs, this does not
mean it will come without a
cost to the consumer. Since
the government is spending
so much money, citizens’ tax-
paying dollars are going toward
something that just has to work
or money will be wasted.
Another concern is that the
renewable energy source will not
be efficient enough to cover all
of Ontario. Until it is possible,
only around 600,000 Ontario
homes will benefit from this new
energy source. But what about
the rest? Will Ontarians be paying
for something they do not even
have?

33 Arbitrage | Summer 2010 | NFSA.ca

 FEATURE

The Future
of Natural Gas
It’s Supply and it’s Impact

Author: Saif Qureshi

Design: Alina Klinaeva

NFSA.ca | Winter 2010 | Arbitrage

 FEATURE
NATURAL GAS SHOULD be familiar
to most homeowners—it’s one
of the more common sources of
energy (and bills!). But have you
ever wondered where this resource
comes from, what it’s used for and
how long we’ll be able to use it
before it runs out? This article will
describe natural gas, its present and
future in the global marketplace
and how it will affect us Canadians.
Natural gas is one of the cleanest,
safest and most useful fossil fuels
out there and, luckily for us, it
has many uses and is found in vast
quantities all over the world. Most
reserves of gas can be found with
other fossil fuels, such as in oil
fields or coal beds. These reserves
are then processed and delivered
to our homes through an extensive
network of pipes, which are
operated by local gas companies.
We
use
this
pure form of natural gas in various
sectors, such as residential,
industry, commercial and electricity
35 Arbitrage | Winter 2010 | NFSA.ca
generation. Some of the common
uses for gas include cooking,
heating (also cooling but this is
less common), fuelling automobiles
and for generating electricity.
In fact due to new technology,
more electricity is expected to be
produced from natural gas in the
future—in 2009 alone, over 50% of
the new electricity generation in
the U.S. came from natural gas.
Moreover, while coal is the cheaper
source of energy, it’s also the most
environmentally damaging, and
as a result of the environmental
regulations duly placed upon coal,
the electricity industry views natural
gas as the cleaner alternative.
Currently reserves are still high
but, unfortunately for us, natural
gas (like other fossil fuels) is a
non-renewable resource and its
formation usually takes millions of
years. So unless scientists figure
out a way to speed this process or
one don’t mind waiting, it becomes
important for us to try and figure
out how long we have until this
resource runs out.
The Score:
Several companies, geologists and
environmental groups have created
estimates for gas reserves, but none
are precise since no one actually
knows how much gas there is until
it’s extracted. Accordingly, a lot of
estimation or “guesstimation” is
done. Yet overall, the consensus
is that as of January 1, 2009, total
world proven reserves (these are
likely to be recovered) of gas are
estimated to be around 6,254 Tcf
(trillions of cubic feet), with 41% in
the Middle East, 32% in Eurasia and
4.5% in North America.
Accompanying this estimate, is
that most forecasts predict that the
demand for natural gas will steadily
increase in the future due to the
expected general economic and
population growth. In fact, from
1975 to 2005, gas consumption has
almost doubled.
Some short-term factors that
affect demand for natural gas are:
(1) the weather, as people require
heating in the winter; and (2) the
economic climate: since industries
require less electricity and heating
during a recession.
In the long run though, demand
is expected to grow for several
reasons. First, electricity
generation is likely to increase
not only because the population
is growing, but also because the
electricity consumed per person is
increasing as we use more consumer
goods, such as electronics. Second,
the demand for natural gas will grow
if any climate change legislation is
passed that promotes natural gas,
as it’s a low emissions fuel. (Also, it
is more efficient during electricity
generation, meaning that more
electricity is produced per unit of
electricity.) Next, advancements
in natural gas technologies will
increase demand (i.e. the future
may see new natural gas appliances
enter the market). Also, several
industries require onsite electricity
generation because they cannot
afford to have a loss of power and it
is likely that this trend of distributed
generation will grow.
Finally, the automobile sector
currently uses very little natural
gas, but in the future, demand for
gas powered vehicles could increase
if some form of government climate
change legislation is introduced.
That said, there remain many
barriers to the widespread use of
natural gas in automobiles, which
makes it difficult to speculate on
the future of this sector.
Forecasts:
As the demand for natural gas
increases, the gas industry will have
to increase its production in order
to meet this demand. In 2000, total
world production of gas was 2422.3
billion cubic metres and grew by
4.3%.
Demand for natural gas will always
exist unless we find an energy source
with better qualities, but eventually
gas reserves will start running low
and companies will not be able to
produce enough. The concept of

1. Natural gas consumption
(billion cubic metres), 1965-2004
peak gas refers to the period where
natural gas will reach its peak
production level and from then
on will continuously decline until
there is possible none remaining. In
case you are starting to panic, the
good news is that current reserves
are high and “estimates” of these
reserves continue to grow because
of improvements in exploration and
technology.
In the past decades the revised
additions of reserves have exceeded
the production of gas due to major
discoveries in Russia, Middle
East, Netherlands and Indonesia.
However, the number of new gas
discoveries is in a decreasing trend,
which means that future production
could grow at a slower rate (see
100 Year Gas Demand Graph). Also,
these discoveries are being made
in deeper levels of land, in greater
depths in the ocean or are further
away from where markets are
located (meaning that in order for
these sources to remain profitable,
the private or government sector
will have to continue enhancing its
technology).
In all, with our current level of
gas reserves, researchers have
estimated that we have 60- 70
years until we start running in to
trouble. On another note, although
this article is not meant to provide
financial advice, investing for the
long term on natural gas might
not be a bad idea since increasing
demand and decreasing supply will
lead to higher prices.
Impact:
Now that you have understood the
importance of copper, it’s time to
understand the real market and how
we will be affected. Unlike some
other commodities, natural gas
exists within regional marketplaces
instead of the global marketplace.
This is because it is difficult and
currently not cost effective to
transport natural gas all over the
world and thus trade is limited.
Some ways in which natural gas
can be transported is pipelines or
tankers of LNG (liquefied natural
gas), but both of these have their
problems. For example, with
pipelines there are various legal
and logistical problems that come
into play because the projects
span wide areas of land. These
NFSA.ca | Winter 2010 | Arbitrage
FEATURE
problems have resulted in very
little international trade in natural
gas and any trade that is done is
usually within regions (e.g. in North
America, all of Canada’s natural gas
exports goes to the U.S).
The importance of this
characteristic of the market is
that countries without enough
gas reserves will be impacted
sooner and more severely from gas
shortages. So how will this affect
Canada?
According to some estimates,
peak production of gas has already
occurred as producers are struggling
to keep output high. However,
according to another study, the
North American peak in production
is expected to be around 2013,
after which production will fall.
The substitute for production is to
import gas, but with the technology
that we have today, importing
liquefied natural gas is too difficult
and requires new infrastructure
which is very capital extensive. The
other option is through pipeline,
but it is unlikely that the U.S. will
export its own gas to us because of
its own requirements.
36
 FEATURE

2. 100 Year Gas Demand

Not to scare anyone, but the

question now remains how we will
survive the cold Canadian winters
when resources such as natural
gas start to run out. This question
could become very important for
many of us students later on in our
lives if we do actually experience
energy shortages, such as natural
gas. Unfortunately, natural gas
is yet another fossil fuel that we
have come to depend on. And so
as a society, it is important for us
to attempt to find the answers of
how our future energy needs will
be met and to change our mindsets
so that we can limit our current
consumption.

37 Arbitrage | Winter 2010 | NFSA.ca


Global Effects of Water
Shortages
Nicki Mossavar-Rahmani, Staff
Writer
GLOBAL ESTIMATES HAVE been
formed showing that water usage
has increased by six times in the
past 100 years and will double
again by 2050, driven mainly by
the demands of agriculture and
an increase in living standards.
Today we are faced with not only
population growth but also a rise
in the middle class portion of
societies.
If we consider the highly
populated and fast-paced
developing countries of India and
China, we can recognize that a
small change in their lifestyle can
impact natural resources greatly.
With their growing economy, more
and more lower class people are
moving up to what is considered
lower middle class. An increase in
the middle class portion of India
and China could have a severe
impact on the natural resource of
freshwater. As more people can
afford to have showers and toilets
in their place of residence, we
will see an increase in demand
for water supplies. As consumer
theory goes, when people can
afford more, they will demand
more.
The water shortage in many
developing countries is recognised
as one of the most serious
political and social issues of this
time. Lack of water is stopping
development and, in many
countries, the rural poor suffer as
their water and other needs take
second place to those of swelling
cities and industry. Meanwhile
with a growing economy, there
will be rise in demand for water
by industries, which may lead to
serious over-exploitation with
less and less water available for
consumers and farmers.
Just as we saw in France, when
people were rioting due to a lack
of jobs, the same will happen
due to the lack of freshwater
and food. Local governments
Image sourced for Unisef.org.nz
worldwide are increasingly
distrusted over water allocation.
This may cause instability in
these societies, protests and more
crime, which may work to scare
off foreign direct investment in
these countries.
If growing demand for freshwater
in China and India leads to its
over-exploitation and decline
in availability for domestic,
agricultural, industrial and energy
production use, this may lead to
broad reduction in production.
Naturally, this would lead to an
economic downturn.
The question is how can businesses
address these challenges and still
make a profit.
The businesses foresee growing
civil unrest, boom and bust
economic cycles in Asia and mass
migrations to Europe. But they
also say scarcity will encourage
the development of new water-
saving technologies and better
management of water by
NFSA.ca | Winter 2010 | Arbitrage
WORLD
businesses.
By some estimates, a worldwide
hydro economy will become
developed by 2025. This will arise
as a result of vast new investments
in recycling water and efforts
made towards reducing the cost
of desalination. It has also been
claimed (primarily by economists)
that the water situation has
occurred because of a lack of
property rights and government
regulations and subsidies in the
water sector—causing prices to be
too low and consumption too high.
If these arguments are proven
true, there could be major
changes in government policy that
will regulate the usage of water
appropriately.
Accordingly, the predictions of a
higher demand on freshwater due
to a rise in the middle class could
also be prevented by unexpected
technological progress. In
response to the doubling of water
consumption in the next 40 years,
York University’s economics
professor Barry Smith said, “Even
if we assume that is true, should
we really expect all of this as
things can move around, all
you really need is technological
progress.”
If we learn from history we know
that prediction dates on food and
oil shortages have come and gone,
yet nothing more than people's
level of fear has changed. Today,
we have the existing technology,
like desalination, to recycle ocean
water to drinkable freshwater
however (even if for now it is
currently considered a very
expensive procedure). Although,
if we reach the stage where water
shortages become a pressing issue,
then the incentive to use the
technology available will become
worth the expense
38
 WORLD

This visualization was first published by the Circle fo Blue. Circle of Blue is the international network of
experts who report and present the information necessary to respond to the global freshwater crisis. It's a
nonprofit affiliate of the water, climate and policy think tank, the Pacific Institute.

39 Arbitrage | Winter 2010 | NFSA.ca

PEAK COAL
WHEN THE DIRTIEST ROCK RUNS OUT
Written by: Pawan J. Shamdasani Design by: David Tal

SiNce the 20th century, coal has laid the plained by better data collec-
tion from more thorough surveys
groundwork for remarkable and ground- and not by the amount
breaking developments; from new forms of
of coal produced. Altogether,
production to new inventions and discover- global coal reserves have seen a
ies, transforming the economy that we live 60% drop in 25 years.
the second study, “the Fu-
in today and making it one of the most im- ture of coal,” prepared by the
portant non-renewable energy sources. institute for energy (iFe) sup-
ports the conclusions reached by
coal accounts for more than fecting living standards for bil- the first study and expands on
a quarter of the world’s primary lions. them. Specifically, the three
energy needs, provides 40 per- “Peak coal” refers to a period additional conclusions this study
cent of the world’s electricity when the global coal production presented were: (1) “world
and powers two-thirds of steel rate reaches its maximum, after proven reserves (i.e. the re-
production worldwide. World which, the rate of production serves that are economically re-
consumption of coal is growing undergoes permanent decline. coverable at current economic
at an outstanding pace, fuelled this theory has recently been and operating conditions) of
by the increase in demand from supported by prominent re- coal are decreasing fast;” (2) sumption and dwindling supplies electricity rates and, thus, on all power its frantic industrial
china and india as their search studies. in particular, “the bulk of coal production and of high grade coal will add pres- manufacturing and service-re- growth and generate electricity,
economies rapidly expand. two european studies, that were exports is getting concentrated sure to world coal prices. Also, lated business activity. china builds a new coal-fired
coal gasification and coal-to- conducted in 2007, suggest within a few countries and mar- in most countries, coal recovery china and india are the two station almost every week.
liquids plants are being built at world supplies of coal are in the ket players, which creates the will incur higher production key players in the future of coal. they plan to triple generating
alarming rates as a result of a decline. risk of market imperfections;” costs, leading to an increase in india, for one, is the world’s capacity by 2030.
rise in the use of lower-quality the first study, “coal: Re- and (3) “coal production costs the global price of coal—since third largest coal producer, but What is the solution to mini-
fuels, that is, a gaseous or liquid sources and Future Production,” are steadily rising all over the international coal prices are still is now also seeking more coal mize the effects of “Peak coal?”
fuel converted from coal. this released by the energy Watch world, due to the need to de- related to production costs. for itself through increased im- coal-dependant countries, es-
surge in coal demand will lead Group (eWG) in Germany, con- velop new fields, increasingly this rise in the price of coal ports. pecially china, are advised to
to devastating consequences in cluded that coal production difficult geological conditions will also reduce the relative gap Meanwhile, china is currently reduce their consumption of
a decade or two as we approach globally could peak in 15 years. and additional infrastructure between coal and oil and natu- the world’s primary consumer of coal now on a pro-active basis
“Peak coal” on a global level, this was based on a thorough costs associated with the ex- ral gas prices. As a result, these coal and has become a net coal (since declines in production are
driving up coal prices and af- analysis of reserve revisions for ploitation of new fields.” three energy markets will be- importer as of 2007. it will have expected to occur regardless) to
several nations. Since 1986, Should we worry? come more inter-connected, to continue importing more coal prevent shortages and price
these nations have experienced the answer is yes, as peak possibly developing into a global due to the lower energy content volatility in the future. A failure
significant downgrades in coal coal translates to higher coal market of hydrocarbons. in par- of its own coal resources, de- to act now will only mean
resources after updating their prices in the future. ticular, financial investors pleting Asian supplies in the greater economic hardships
reserves estimates. the down- how? should beware the impact high coming years and radically up- once the peak arrives.
ward revisions are best ex- Well, for one, increased con- coal prices will have on global setting the market. in fact, to
40 Arbitrage | Winter 2010 | NFSA.ca NFSA.ca | Winter 2010 | Arbitrage 41

WHO INFLUENCES
WHO?
Politics And Business: Where Is
The Boundary?
Luis G. Marquez, Staff Writer
Throughout the capitalist world, we
have constantly seen how close politicians
are with businessmen. Many events have
sprung up that show many examples where
political policies have affected matters
of business. Yet we have also seen the
opposite, in which businesses have affected
the politics of a nation, either in an
election or in policy making. The question
that arises then is who influences who?
Politics influencing Business
When it comes to politics, one can
obviously see that such policies like
corporate tax, privatization, free-trade
policies, the opening of a business, the
promotion of social welfare and the
nationalization of industries can affect the
nature of business, whether in a positive
or negative way. However, this is only
scratching the surface and does not explain
how politics is able to influence business.
The issues mentioned above come not
from the current government of a nation;
rather from the political environment
under which that government is subjected
to. The regulation of business and the
way business ought to conduct itself when
making profits depends largely on the
political climate.
In other words, it is not simply about
increasing or decreasing corporate tax, but
what is the purpose of it. Why increase
or decrease it? Why implement free-trade
policies? What is the reason?
Each country’s political decisions and
policies vary and understanding the reasons
behind those decisions and policies will
undoubtedly help one understand the way
business is done in that particular country.
It would be unethical and incompetent for
a businessman to do business in a country
if he knows very little of the policies and
regulations of that nation.
If few or any regulations or laws were
established over business matters, these
companies or other for-profit organizations
can behave in ways that are deemed to
be either unethical or just down-right
wrong. For example, politics has played
an important role in the introduction of
non-discriminatory policies in Canada and
in the United States. Governments of both
nations have worked hard in preventing
Katherine Schipper, second from right, talks about the economy during the president’s forum
Wednesday, October 1st, 2008. | Jared Lazarus (Source: Duke Today)
discriminatory practices from continuing in
the workplaces.
Had there been little or no regulations
against discrimination, businesses could
hire or terminate employees for any reason.
Governmental policies have obliged
businesses to treat their employees well
through respect and provide appropriate
payment for their work. It is examples
such as these that allow us to see just how
influential politics is over business matters.
However, can the reverse happen?
Business influencing Politics
To say that business has no influence
whatsoever over political matters, would
be naïve. The business and political
circles have always been composed of very
influential individuals.
It is no common practice for a politician
to sit in the Board of Directors of a major
company and act as their consultant. These
influential people of major corporations
have the monetary means to influence the
political sphere of a nation.
There have been several situations in
which businessmen have swayed policies
to their benefits. In an article published
for the University of California, Santa Cruz,
it stated that businesses get involved on
issues that have high stakes for them and
for the public. In this case, businesses
have influence over environmental politics,
often with disastrous consequences for the
environment.
“It isn’t fair to say they’ve been involved
in everything and are single-handedly
responsible for our lack of progress. They
have limited resources and choose their
fights accordingly,” said author Sheldon
Kamieniecki, a professor of politics and
Dean of the Division of Social Sciences at
the University of California, Santa Cruz.
What this illustrates is that businesses pick
their targets carefully and do whatever
NFSA.ca||Winter
NFSA.ca
POLITICS AND BUSINESS
they can to influence the political outcome
of an issue that greatly concerns them.
Another example is the concern of
corporate media takeover. In an article
originally published by rabble.ca but
also shown in the Canadian Dimension,
there is concern for a breakthrough for
the independent media from corporate
or right-wing bias. As a result, many
independent media outlets have been
set up as non-profit entities, with diverse
sources of income. The fear is that the
loss of an independent media is the loss of
freedom of speech and expression, which
can have catastrophic consequences (for
more information on this please click on
the link: http://canadiandimension.com/
articles/2718/).
Conclusion
This matter of influence is still subject
to debate. However, it is fair to say that
both politics and business have a tight grip
on each other.
While businessman can wield enormous
influence over political matters, politicians
are still able to pass laws and regulations
that touch on business matters, thereby
guiding and limiting their business conduct.
What is important is that neither one gains
enough influence at the expense of the
other.
Furthermore, it is crucial to understand
both the positive and negative aspects of
politics and business. Understanding will
not only enlighten a person of the ethical
and legal aspect of doing business, it
will also bring about an understanding of
where many of these business policies and
regulations come from and how much does
it affect certain business.
If anything, this is something that all
business, financial and economic person
must know
Winter2010
2010||Arbitrage
Arbitrage 42
3
 POLITICS AND BUSINESS POLITICS AND BUSINESS

The Arbitrage is expanding the number of sections it will cover from here on. One such section will be This visualization was created by David McCandless & Stefanie Posavec and was first published by the
called 'POLITICS AND BUSINESS' and it will cover those issues where business and politics most affect each websites InformationIsBeautiful.net & ItsBeenReal.co.uk. Both are extremely talent designers, the former
other. For those new to politics, below is a simplified version of the basics relating to political thought. in the realm of inforgraphics and the later in the realm of contemporary art. Check them out!

43 Arbitrage | Winter 2010 | NFSA.ca NFSA.ca | Winter 2010 | Arbitrage 44

 OPINION

THE WORLD NEED has played its part in the depletion humanity. The crisis has allowed for
of our water supply. Most of the the investment and development
NOT THIRST earth’s fresh water comes from of sustainable energy. In economic
Freshwater Shortage: A Global
the polar ice caps and glaciers and terms, it is the financial as well
Problem
with rising temperatures, we can as the environmental future. In
expect the total disappearance of the same way oil was, there is
Luis G. Marquez, Staff Writer our main water supply within a few huge potential for investment
decades. and employment with sustainable
IN THE YEAR 1800, there were
Therefore, it is not simply energy.
approximately 978 million people
enough for our government to One type of sustainable energy
living in the world. Two hundred
acknowledge that there is a water that has recently been introduced
years later, that figure rose to
is desalination. It is
around more than 6
several processes that
billion people. With the
remove excess salt and
increase in the number
other minerals from
of people comes an
water. The Middle East
increased demand for
region has extensively
freshwater, a renewable
used desalination,
but limited resource.
given its relative water
Many national
scarcity.
governments and
Although largely more
i n t e r n a t i o n a l
expensive than using
organizations have not
rivers and reservoirs,
taken the freshwater
desalination is at the
crisis seriously. In an
very least a short-term
article written by Richie
solution to the water
Mogwai for Orato.com,
crisis. 71% of the Earth
the United Nations (UN)
is covered in water, but
has stated that the world The New Hydrological Temples of Modern India only 3% of that water is
maybe on the verge of (Photo by: M. Henley/PANOS.)
fresh water. With such
seeing its first water war,
crisis on a global scale. Certain figures, is it imperative that we
with the first opponents being
measures and policies need to be should be able to gain access to
India and Pakistan with their thirst
made immediately. the rest of the 97% of water that
for water within the disputed
For example, more of our tax encompasses the Earth. At the
Kashmir region. Yet still, the Food
dollars should be invested in very least, it should release much
and Agriculture Organization of
developing sustainable energy in pressure from our freshwater
the United Nations (FAO) as even
order to reduce the continual use supply.
stated that there is no global water
and production of coal-burning, gas This issue is not longer the
crisis.
or nuclear power infrastructure. concern of one or two countries,
Although FAO made such a
Simultaneously the UN needs or even a region. It is now the
statement, it does acknowledge
to take measure to ensure that responsibility of very nation,
that by 2030, one in five developing
everyone, especially those residing of very person living on this
countries will face water shortage.
in developing countries have access planet. We have but two options.
California water officials have
to safe drinking water. In the last Either we establish cooperative
also expressed great concern with
decade, global coverage rose from measures that will not only
their water supply. They predict
77% to 82%, meaning that nearly ensure our own survival, but will
that by 2020, the region will face
1 billion gained access to drinking enable us to progress financially,
a shortfall nearly as great as it
safe water. However, another 1.1 technologically, politically,
consumed today.
billion people still lack access. economically and socially, or we
Despite putting the blame on
Despite the severity, the global can destroy ourselves through our
population increase, it should not
water crisis should not simply be own selfish acts
be surprising that global warming
seen as a potential disaster for

45 Arbitrage | Winter 2010 | NFSA.ca


A Heavy Government Hand produce an environment that will competitive by forcing them to
and the Future of Innovation allow the private sector to lead us use their energy resources more
Curing the Peak
Oil Disease
A Holistic Approach to
Addressing Peak Oil
David Tal, Staff Writer
AFTER READING THIS issue’s feature
article, it should be clear now the
very real challenges the
coming age of Peak Oil
will present. In all, Peak
Oil is a disease, one that
will infect the modern
world, cause a great
amount of disruption
and, if nothing is done
about it, can lead to the
gradual disintegration of
society as we know it.
We saw a glimpse of this
when on April 12th, 2008,
the government of Haiti
collapsed due to wide-
scale riots brought upon
by skyrocketing food
prices, caused by the
skyrocketing cost of gas.
So what can the
world do (especially
industrialized nations) to
try and avoid this same
fate? Here a holistic
approach is needed. Peak
Oil will affect—directly
and indirectly—every
aspect of society; thus,
the solutions acted upon must be
many and work in unison toward
the aim of reducing our energy
consumption (and in turn, our
carbon footprint, which is great
for the environment as well). The
following are suggestions that, in
this writer’s opinion, need to be
enacted by the government to
out of this Peak Oil mess.
The Basics
To start they can get serious about
limiting the amount of carbon
that industry consumes (either
through oil-derived electricity
usage or direct oil consumption
through transport of goods or the
production of petroleum-based
goods, i.e. plastics), possibly
through a cap and trade program
or outright caps on emissions that
will get progressively tougher bi-
annually. This will have the side
benefits of reduced CO2 emissions
that damage the environment,
will produce green jobs by
retrofitting the old infrastructure
of industrial buildings and make
each participating company more
NFSA.ca | Winter 2010 | Arbitrage
OPINION
cost effectively (thus reducing
their operating costs).
Similar initiatives can be
implemented in domestic buildings
and their construction. First, the
government can enact stricter and
greener building standards that
reduce energy usage in every new
house or building that is built.
This will have the secondary
benefits of increasing the demand
for green building materials,
forcing its suppliers to
increase the capacity of
their plants, which will
eventually bring down the
cost of green materials
and in turn make building
greener homes cheaper.
As well, since (initially)
these new standards will
mean that all new homes
will cost more (due to the
more expensive building
materials used), most
new home owners will
opt to purchase their next
homes closer to the city,
inside more affordable
apartment buildings
instead of stand-alone
homes (reducing the
expansion of economically
unsustainable sprawl).
As well, all new buildings
can be required to equip
their parking spaces
with electricity outlets
to more seamlessly
accommodate the
coming reality of plug-in electric
vehicles. And for the homes that
already exist, subsidies can be
offered to homeowners to retrofit
their homes with energy efficient
appliances, lighting, furnaces,
insulation, etc.
As for the transportation
industry (which uses nearly 70%
46
 OPINION
of the petroleum produced),
governments must enact legislation
that forces car companies to
produce zero-carbon emitting
vehicles (electric cars) by a certain
date and thereafter, annually
increase the total percentage of
those vehicle’s production until
all vehicles in production become
zero-carbon emitting. And while
this may be a more impossible
requirement to ask of transport
trucks, cargo ships and airlines,
the government can enact
subsidies into research
of energy saving designs
and technology that can
increase the efficiency of
these transport mediums.
Together, such legislation
can substantially reduce
the amount of petroleum
used on an annual basis,
while at the same time,
work to reduce man-
made global warming.
With respect to energy
production, just like the
governments did with the
first national railroads,
highways and satellites,
they must take the lead
by investing in the wide
scale implementation
of alternative energies
(eventually encouraging
the private sector to
follow). Recent studies
have revealed that the
existing technologies
of solar, wind, hydro,
wave and especially
geothermal can easily satisfy the
full energy needs of the planet
if only their use were scaled up.
Doing this will eliminate our need
on relying on energy from burning
petroleum, coal (which uses large
amounts petroleum to transport
coal from the mines to the plant)
and nuclear (which also uses huge
47 Arbitrage | Winter 2010 | NFSA.ca
amounts of petroleum energy
to mine uranium), as the cost of
these sources of energy will only
increase the further into the peak
oil age we enter. As well, this new
energy transition will generate
millions of jobs that will alleviate
the unemployment peak oil will
bring.
And as for food production, the
government will need to enact
policies to ensure that all food
is grown organically, i.e. without
the use of petroleum based
fertilizers and pesticides. As
well, further regulation will be
required forcing grocery stores to
buy their packaged food, meats
and produce locally (as much as
possible), instead of importing
them from across the country or
internationally. Implementing
both these measures will make
sure that less petroleum is used in
the production and transportation
of food and will have the added
benefit of producing healthier
food for the masses while
providing struggling farmers with
an increased income.
The Gravy
All these actions and more can
be implemented (especially in
the support of the Third World),
but overall, the best way to fight
against peak oil is to invest in
innovation, in human
ingenuity, that will
create the technologies
humanity needs to break
out of our dependency
on petroleum. As of now,
present patent laws do
a good job of protecting
the interests of inventors
and the companies that
support them. They have
also played a large role
in the process of wealth
creation across the world.
But though my research,
I have found many
commentators saying that
the world is approaching a
gridlock in the advance of
innovation. Specifically,
there is a drag on the
speed of progress in
innovation and that drag
comes from the patents
themselves.
For example, let us
assume that today a
scientist has found the cure
for aids or cancer or Parkinson’s,
but the production of that cure is
dependant on ten ingredients that
come from medical patents owed
by ten different pharmaceutical
companies. Will that scientist ever
be able to convince each of those
ten, competitive pharmaceutical
companies to allow him to use

their patents, even with a small
cut of the profits? Not likely. The
result is that this cure will be
shelved and that many years of
additional research and resources
will have to be expended in order
to find another cure that doesn’t
use those ten patents. Such an
example is not unimaginable
and in fact, occurs quite
regularly. For example,
electric car battery
technology could be much
farther along than it is today
if not for the oil companies’
(who bought many innovative
car battery patents for their
own reasons) unwillingness
to license out their patents.
In response to this current
state of affairs, governments
should consider making all
patents or at least a certain
portion of them ‘open
source.’ What this would
entail is that any individual
or company can use any
patent they wish without
need for permission or fear
of being sued for patent
infringement. Of course
the danger of this would be
that larger corporations may
take advantage of this reform by
taking patents from their smaller
competitors and then selling the
same products as their competitors
but at a lower cost, thereby driving
these smaller businesses out of
business and creating a monopoly.
To combat this possibility, only
two simple limitations need be
placed on this reform: (1) patents
of others can only be used to
develop new products that do not
compete (directly or indirectly)
with the products produced by
the patent of the original owner;
(2) if a patent is used, then a
royalty must be paid to the owner
of the patent, the size of which
will be relative to the unit sale
price of the new product and the
centrality of the patent within
the new product’s design (further
research would need to be done
to find the exact ratios of these
royalty payment requirements).
Implementing this simple
reform would unchain the hands
of innovation that were previously
confined by overprotective patent
holders. Moreover, such legislation
is not new; in fact, during WWI,
the US created a patent pool
within the airline industry that
allowed airplane makers to swap
technology and share profits
without the threat of being
sued. This led to rapid advances
in airplane engine and design
technology that helped the Allies
eventually win the war against the
Germans. The same can be done
today, at the very least within the
fields of green energy, that may
just spur the rapid development
of new technologies that can help
the world enter the new carbon
NFSA.ca | Winter 2010 | Arbitrage
OPINION
age.
As for what individuals can do
about the coming reality of peak
oil, they can start by educating
themselves, their family, loved
ones and neighbours about the
reality they will all in time share.
They can make active choices to
reduce their carbon footprint
by choosing to live in the
city instead of the suburban
sprawl, choosing public
transit instead of owning
a car, renovating their
homes to be more energy
efficient and purchasing
energy efficient and locally
produced goods and foods.
They can learn to recycle,
compost their own organic
waste (if possible) and if
they live in a house, learn
how to turn their backyards
into miniature farms that
produce edible food (saving
on food bills in the process).
And if people are willing, they
can even take some basic
survival training courses and
most extreme of all, actually
build relationships with ones
neighbours and community
so that they can rely on them
when times get rough.
In conclusion, there are no
quick fixes to the problem of peak
oil. Any solution will take time
and the economic turmoil that
will occur in the interim will be
shared by all. As stated earlier,
by taking steps now to address
this issue, through legislative and
technological innovativeness, the
world may just have a chance at
avoiding the worst that peak oil
may unleash
48
 NFSA EVENTS

NFSA Recap of
Networking Night with
TD Bank
Rustem Safin, Contributor

Networking Night with TD

Bank Financial Group was the
NFSA’s second premiere event
held in the 2009-2010 academic
year. This was our first event with
TD but with its success, it will by
no means be the last.

which showed in the number

Applications for this event
began long before the week of
the actual networking night.
Students were asked to submit
a résumé, along with their
cover letter, as the NFSA and
TD requested those items from
each student to attend the
event.
This event was substantially
popular with the student base,
of applications (over 100 were
submitted). Unlike this year’s
first big event (the Edward Jones
Case Competition), this event had
four different schools represented
(York, U of T, Ryerson, OUIT).
That is definitely a sign of the
NFSAs expanding member base
and deepening relationships with
our partner finance clubs, which
is likely going to continue in the
following years. So for students,
the networking opportunity was
not only with the
representatives
from TD, but also
fellow students
from other schools.
The event was
held on the 25th of
February, 2010, at
5 pm. The venue
was the TD tower
at 66 Wellington

49 Arbitrage | Winter 2010 | NFSA.ca

 NFSA EVENTS

on the 54th floor. That’s right

the 54th (top) floor, which means
the attendees were able to enjoy
amazing view. Overall the dress
code, which was business formal,
suited the occasion and the venue.
In my personal view this was a
pleasant break from the midterms
that were happening around that
time.
The Keynote Speaker was
Mushtak Najarali, VP Finance, and
the Panel were: Andrew Clarke
- SVP & Deputy Chief Auditor,
Jeridean Young - AVP Taxation,
Yan Xu - AVP Finance, Dhaksha
Bryce - AVP Audit. The topics
raised during the panel were the
career progressions of this panel,
as well as a look in their typical
workday. The panel was followed
by the Mix and Mingle sessions,
where students were free to have
more individual conversations
with the panel, as well as other
TD employees

NFSA.ca | Winter 2010 | Arbitrage 50

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ENTREPRENEURISM IN A CLICK
What it takes to be an entrepreneur
and why now is the best time to
BECOME ONE
BY DAVID TAL,
STAFF WRITER & GRAPHIC DESIGNER
 balance with my business, how to man- likely question one might ask is, could say, “the costs seem to high. load free design tools like Blender or
It’s scary out there. Graduating age into my schedule.” “Where do I begin?” Starting a business, running a business,Google’s SketchUp to create 3D ren-
“You see, for entrepreneurs, you During the discussion with Professor nowadays only the big corporations can derings of their product, then purchase
from university, students would have to do everything, because usually Kerr, he pointed out that a good place do that. How can I compete?” online the manufacturing equipment
when you first start out, you don’t to start is through networking. “Suc- This mindset would have been per- (which have fallen in price from the
hope to whatever belief system have the capital to hire anybody. … cess in entrepreneurship is as much fectly valid and common only ten years hundred thousands to a few thousand,
Those things, how to manage your who you know as what you know or ago. For many, the costs of starting e.g. MakerBot) they would need to
they holds dear that they’ll be time, you’re not born with them. It how innovative you are. On two sides, one’s own business, competing with build their products at home or in their
takes time to learn.” it helps you with getting the resources the ‘big boys’ were staggering, not to rented space.
able to land a job within their In the end though, Moshe confirmed you need to get your venture off the mention the sheer amount of industry The latter is the approach Moshe is
that, for him, the pros outweighed the ground … and also, at the market in- or legal knowledge one would need to currently taking with his new venture,
chosen profession, to finally cons. “Entrepreneurship is my life.” terface, networking exposes you to dif- obtain to ensure their business lasted Up Entertainment. Started over a year
The conversation then shifted to the ferent channels, new potential past the first few years. But something ago, Moshe invented a new television
start their adult lives in qualities a young professional needs to customers. arose this past decade, something screen system for condo elevators that
succeed as an entrepreneur. “Gener- “All things together, it’s usually the which acted as a game-changer: the In- will show video and advertisements to
earnest. “But what if that doesn’t ally, I would say (you need to) have well-connected person who wins the ternet Revolution. riders, but do so wirelessly instead of
dedication, persistence, discipline, game versus the in- using long
happen?” they might wonder. adaptiveness and awareness. Things dividual without You have to keep up on the market, know who your bundles of
are always changing in the market connections.” competitors are and if they make a mistake, know how to c a b l e ,
“What are my options?” place. You have to be prepared for un- Kerr went on to
capitalize on it. which is the
certain situations. And you have to be explain how, in industry
alert. You have to keep up on the mar- terms of lack of funding, there are also It seems quaint to say this now, es- standard.
getting into one stream of work and ket, know who your competitors are a variety of modest funding grants and pecially with how comfortable many He programmed the software him-
For many soon-to-be-graduates, the
staying in that work until retirement, and if they make a mistake, know how loans offered by the government for Gen Nexters are with the Internet. But self and, with a business partner, con-
answer to this existential query is
those days are long gone.” to capitalize on it.” young entrepreneurs (that is, if you that’s the point! When one thinks structed a several prototypes of the
weighing more and more on their col-
But Moshe added that above all else, can’t get funding from family, friends, about it, the Internet—and the Infor- screens, which were later installed (as
lective minds. And even with the
So what options are there? For “I think that it is very important for en- the bank, etc). Moreover, the impor- mation Age it helped foster—has com- a trial run) in a number of smaller GTA
economy crawling out of a recession,
some, taking action, taking command trepreneurs to be okay with failure, tance is pressed for those students who pletely democratized almost every condos. With their success, Moshe has
finding work—any work—remains a
of one’s life to create one’s own oppor- because it’s there all the time. You fail lack experience, to “weave (entrepre- aspect of starting a new venture. And already contacted a Chinese manufac-
bloodsport. They will be competing
tunities feels like a welcome refuge and you have to stand up and keep on neurship) into their education and for those Gen Nexter’s, currently in turing company to produce more of
with thousands of other new graduates
from the thought of having to rely on going.” choice of part time employ- their 20s, they’re the first generation these elevator screens at much lower
and hundreds of thousands of other
the whims of external employers. This ment, (to expose them) to grow up with it, to know how to use costs. If all goes well, he plans to soon
adult professionals for the jobs they
mindset is entrepreneurship at its If that last point to the entrepreneur- it intuitively. shift his business into full operation,
want.
heart and many young professionals hasn’t scared ial landscape (as So why pay huge sums of money to installing custom screens in condo ele-
Pile on to this the fact that since the
are viewing this profession/lifestyle as prospective early as possi- market one’s product or service on tel- vators throughout the GTA.
1980s, since the rise of globalization,
a viable option upon graduation. entrepre- ble).” evision or in newspapers, when one In all, never before has it cost so lit-
cost cutting trends have changed the
One such individual is Moshe Lok- neurs off, can do so for free (or next to free) on- tle or been so easy to not only start
rules of the game. Specifically, such
shin, President of the Entrepreneurship t h e n “But line (e.g. Ebay or SparkFun) and in a one’s own business, but make it survive
movements as downsizing (reducing or-
Society at York. Growing up in Israel, t h e still,” much more targeted way? and even grow globally. The only thing
ganizational size either through the
Moshe developed a strong background next one Why shell out thousands in consul- stopping most from doing so is the will-
number of employees or the number or
in computers, so much so that at 17 he tancy costs, when one can access ingness to take risks and invest their
breadth of departments); delayering
decided to start his own business. To reams of industry, legal, regulatory, time to pursue those opportunities
(restructuring the organization to pos-
his surprise (and a great deal of luck he pricing, logistical information, etc, for they see in front of them.
sess fewer levels of bureaucracy); out-
adds), his business, M.n.B. Computers free online. For Moshe, there’s one thing he
sourcing (getting rid of organizational
Ltd, grew over three years to generate Why invest millions of dollars in would tell a young counterpart inter-
functions to instead purchase them
annual sales of approximately 3.5 mil- owning manufacturing plants, ware- ested in trying entrepreneurship,
from external specialists); and casual-
lion Shekels (950,000 CAN). houses, shipping fleets, etc, when one “(It’s) a lifestyle, not just a career. So
ization of work (part-time, flex-time,
Sitting down with him, we discussed can organize online the outsourcing of what do have to improve most? Your-
temp work, volunteer, etc) have led to
the lifestyle of the entrepreneur. a product’s complete production to self. I am constantly trying to develop
a complete shift in how most view the
Sure it provides the satisfaction of foreign countries like China (e.g. Al- myself, looking for what I’m good at
concept of work.
striking it out on your own and, if ibaba.com: business-to-business mar- and what are my weaknesses and try-
Summarizing this shift, Professor Jon
you’re successful, a great deal of ketplace), have it stored in a nearby ing to improve on them.
Kerr, a lecturer and coordinator of the
wealth, but is it for everybody? warehousing company, accept pay- “There is no stop. You can always
management area in the School of Ad-
Moshe grinned. Then with a Russ- ments for products online (e.g. pay- be better, always continue, always im-
ministrative Studies in the Faculty of
ian accent confessed, “(When I first pal.com), then deliver one’s prove, always explore other opportu-
Liberal Arts and Professional Studies,
started out) I had to sacrifice—ini- products anywhere in the world (e.g. nities. It’s like a never ending
stated, “The employment environment
tially it was a girlfriend, then friends, government or premium mail carri- marathon ”
today is fundamentally different than
my high school grades were lower, all ers)?
the environment 30, 40, 50 years ago.
the things that I didn’t know how to Even for those archetypal, DIY
The idea of getting out of university,
garage inventors, they can now down-

53 Arbitrage | Winter 2010 | NFSA.ca NFSA.ca | Winter 2010 | Arbitrage 54

 SECTION HEADING
STUDENT RESOURCES
Alex Lee
FINDING CAREER OPPURTUNITIES
IN FINANCIAL SERVICES

Financial Advisor (In Training),

Edward Jones
E VEN SINCE GR ADUATING in
December 2009, from the BAS
(Finance) program at York University, I
still remember studying until 1:00 AM
at the Tel Building the day before the
exam and sprinting to the Scott Library
to print assignments ten minutes before
the deadline. That all-nighter, 24/7 style
of hard work is something I’ve carried
with me ever since I branched out into
the real world and started working as
an Apprentice this January at Edward
Jones.
I accepted this position to gain valuable
experience in the Financial Services
industry. And with Edward Jones
being the largest Private-Partnership
investment company in North America,
with close to 13,000 offices and ranked
No. 2 on Fortune magazine’s “100 Best
Companies to Work For 2010” list, it’s a
great organization to start my career.
There are two routes to becoming a
Financial Advisor at Edward Jones. You
can go directly into the Financial
Advisor Program and become licensed
and trained. The other option is to first
enter the Apprentice Program for three
months and then enrol in the Financial
Advisor Program once Edward Jones
and the Apprentice agree to continue.
I was one of the top eleven chosen
from across Canada to participate in the
latter program—a program that included
individuals coming from a variety of
provinces, including Manitoba and British
Columbia. The Apprenticeship route I
chose because it provides me with an
opportunity to work under a veteran in
the industry for a three-month period.
The program started with three days
of intense training at the Mississauga
head office, alongside those ten other
apprentices.
On the fourth day though, I
started knocking door-to-door in the
Unionville neighbourhood where my
Image soucred from PrivateWealthCenter.com
host advisor’s office is located and
introduced myself and Edward Jones
to individuals in the neighbourhood to make 50% return in few months.
Initially, it was very challenging
experience emotionally and physically
to walk around four to five hours a day
and have doors slammed on my face.
In just first month of work, I lost
10 pounds of weight, my shoes had
holes ground into their bottoms, worn-
out clothes and bag, blistered foot and
a fatigued body. You really need to
have a positive attitude and be able to
motivate yourself everyday to go out
and meet new people. I sat down with
an Investment Advisor whom I respect
greatly and he said these words to me,
“You need to do work nobody wants
to do, to have the life style everybody
wants.” I learned many valuable lessons
as I started working this profession. For
one, I learned the value of a contact,
because I knew how hard I had to work
to earn a person’s trust and get them
to open up to a conversation.
Second, I learned the value of
money. People trust you with money
they earned from their 9-to-5 or 9-to-9
job and I have to be diligent with their
money. This is not a stock competition
This is money families saved up from
making sacrifices in their spending
to plan for their future. And third, I
learned the value of my profession.
Investing is a tool, not an end goal for
most people. Our job is to work as a
team with individuals to help them
meet their financial goals and make
wise decisions with their money.
Although most people don’t consider
Investment Advising as a rock-star
profession in Finance, I am strongly
convinced that this career allows me
to fully utilize my knowledge and
skills to help others. My Advice: Start
networking with professionals in the
industry of your interest. Remember,
it’s not always about what you know,
but who you know. Second, keep
your knowledge updated; I read the
Globe and Mail, Bloomberg and Yahoo
Finance. And last, find a mentor or a
role model, mine is Michael Lee-Chin
and Jonathan Rivard

55 Arbitrage | Winter 2010 | NFSA.ca

 STUDENT RESOURCES

10 HOT NETWORKING TIPS:

REPRINTED FROM CAREER INSIDER
(careerinsiderbusiness.ca)

Edited by Laura Roberts

IT’S A COMPETITIVE world out there.

The best jobs not only go to the
best and brightest but to those who
have forged the best contacts as
well. And the best way to build that
web of contacts is to network. It’s a
professional activity that can be done
naturally, effectively and lead to many
opportunities. We recently asked some
successful professionals in the world of
finance to pass along some tips that
will help you land that dream job and
climb the corporate ladder once you
start your career.

START NOW

Networking is easier when you’re

not on the job market. We all have a
built-in network, through our family,
friends, classmates, professors or
former co-workers. Begin working
connections with the people who are
the most invested in your success.
By sourcing these relationships, you
may able to learn about openings as
they become available, or even get a
referral.
Alison Innes
Financial Analyst
Columbia Sportswear Canada
FIRST IMPRESSIONS COUNT
When introducing yourself,
pronounce your full name clearly, and
follow through with a great handshake
and eye contact. Practice your
handshake and introductory greetings
with friends.Loose, damp handshakes,
or overly firm, tight handshakes can
negatively impact first impressions.
Loren Francis
Portfolio Manager
Image Soucred From http://blogs.sfu.ca
Cumberland Private Wealth
Management
ASK QUESTIONS
Be curious about the people you
me et. A sk p e ople ab out their
interests, their opinions on industry
trends, and tips on how to be
successful in the business world. You
will make a deeper connection with
someone by being an active listener.
Make eye contact. Listen to what’s
being said and pay attention to facial
expressions and body language. You
can often learn more about someone
through non-verbal communication
than a verbal answer.
Abid Hafeez
Financial Leader
TransAlta
PREPARE AN ELEVATOR SPEECH
Write and rehearse a short speech
that describes who you are, what
you do and what your goals are.
Your elevator speech should be no
longer than 30 seconds, or the time
it takes to share an elevator ride with
that person. Make sure your speech
sounds conversational, natural and
sincere. The hardest part is saying
the first word, but most people are
nice and responsive, so you have
nothing to lose. Remember to have
your business card on hand and be
sure to ask for theirs.
Matthew Thomas
Analyst
Morgan Stanley

NFSA.ca | Winter 2010 | Arbitrage 56

 STUDENT RESOURCES
Image Soucred From www.cuboulderblogs.com/
WORK THE ROOM
Don’t stay in one spot. Walk around
and meet as many new people as you
can. Start with people you already
know, or who are there on their own.
Introduce people to each other. As
you get more comfortable, ease your
way towards the VIPs at the event.
Gordon Ng
Financial Consultant
Investors Group
BUILD A GOOD DATABASE
Make an electronic contact card
for every contact you meet or
every business card you accept.
Write notes about the person, your
discussion, their interests, and
any details worth remembering.
Create categories of your contacts
list and actively manage them.
It’s extremely important to have
quick and simple access to every
single person in your network as
needs arise at unexpected times.
Being able to remember intricate
details can make the difference—
notes will help you achieve that.
57 Arbitrage | Winter 2010 | NFSA.ca
Outlook contacts help me organize
Daryl Purdy
and centralize my ever increasing
Director of Business Development
list of contacts.
KCS Fund Strategies
Nouman Ahmad
Analyst
TD Securities
SHARE YOUR KNOWLEGE
Share your experience and business
knowledge. Be an ambassador of the
products and vision that your company
sells. Those who you are networking
with will see that you have much more
to offer as someone who understands
the bigger picture, and can drive value
in their business. Break free from the
pack and sell yourself as an enabler
of their business, and translate your
skills into layman terms.
Shane Saltzman
Director of Finance
Pitney Bowes Canada
MAKE CONNECTIONS
Networking is never just about how you
can get ahead in your own career — it’s about
meeting new people and the exchange of
intelligence. The connections made during
networking should be extended to others
by introducing individuals to one another,
and perpetuating “networking karma”.
The confluence of information and ideas
can be enriching for everyone, creating a
sense of camaraderie.
Lucy Edwards
Senior Analyst
British Columbia Investment
Management Corporation
FOLLOW UP
After meeting someone be sure to
follow up with a brief note or a phone
call. Plan on connecting with one
person from your network each week
for lunch. This will build a regular
routine of cultivating your network.
KEEP IN TOUCH
Building your network doesn’t
always have to be about meeting
new people. Look at your current
circle of peers and think about
the future. Today’s classmate can
often be tomorrow’s colleague or
even a client. Keep in touch with
these individuals. Just because they
aren’t potential employers or clients
now doesn’t mean they won’t be in
the future. You already have access
to what will one day be a valuable
network. Protect and nurture that
access because, at the end of the
day, you’ll always have less to prove
to these people as they’ve already
seen you in action.
Andrew Secord
Senior Manager
Deloitte
Be Part Of The
EMPLOYMENT: At present, we are ACTIVELY searching for new writers, illustrators and designers to
work for the NFSA ARBITRAGE, Canada’s first student-run finance magazine. If interested, please
ADVERTISING!!!
send a cover letter, résumé (and sample of your work) to: HR@nfsa.ca
SUBMISSIONS: The NFSA ARBITRAGE welcomes submissions from writers and photographers. Please
first send a query to the ARBITRAGE's editors at: Arbitrage.Query@nfsa.ca
LETTERS TO THE EDITOR: Suggestions for future issues? Kudos? Criticisms? The NFSA ARBITRAGE wel-
comes letters to the editor. They must be signed by the writer and include city of origin. Email: Ar-
bitrage.Query@nfsa.ca

EVENTS: If you are an NFSA affiliate or sponsor interested in promoting your finance/business related
event for free in our upcoming issue, please contact: Arbitrage.Query@nfsa.ca
David Alexander
Editor-In-Chief INTERVIEW: If you are a finance student of merit, or a professor or industry professional related to
the finance industry, and you are willing to graciously lend your time to be interviewed for one of
Do not trust the ARBITRAGE’s future columns, please contact: Arbitrage.Query@nfsa.ca
people. They are OTHER QUERIES, contact: Arbitrage.Query@nfsa.ca
capable of LEGAL NOTE: All letters or pictures submitted may be published by the NFSA ARBITRAGE, unless ex-
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sponsible for the return of unsolicited material. All submissions may be edited for punctuation,
Stanislaw Lem grammar, style and length. Not all material may be published.
 SArAh Prevette is a serial entrepreneur in the classic sense of the

Sprouter
term. upon graduating from school, soon after founded the online ven-
ture, Sprouter, of which this feature article discusses. however, she is
also the founder of a variety of other ventures, including: redWire (an
online collaboration tool facilitating knowledge exchange between start-
ups and business leaders), Social Mastermind (a volunteer run initiative
pairing social media luminaries with charities to help causes build online
market share) and regular networking events, such as Wired Wednesday,
Sprout up and Break Out Camp.
A talk with Sarah Prevette
How did you come up with the idea cilitate new business creation -
MAny StudentS in university dream of landing a nice job when they graduate. for Sprouter? they just tend to lack effective vis- A recessionary global economy
they want a job that will offer a great starting salary, a job where professional de- Sprouter was born to overcome ibility. I'm continually amazed at means tighter budgets, longer sales
the traditional isolation of entre- the plethora of initiatives geared cycles and a climate of fearful un-
velopment is encouraged and recognized and a job that provides them with self- preneurs and create an instant, specifically at students. I would certainty. But, like with most is-
satisfaction. plug-in network of support. Start- strongly recommend researching sues, there lies opportunity for a
Other students meanwhile dream of having their own business. they want to be up founders leverage Sprouter for opportunities and speaking with resourceful individual offering a
their own boss, they want to make their own hours and want to be rewarded for advice, inspiration and real time timely solution. Products posi-
not-for-profit organizations like the
feedback on their business. Canadian Youth Business Founda- tioned to save money for example,
everything they do. tion (CYBF.CA) might particularly prosper in a re-
these students want to be entrepreneurs. Do you have any advice to give Uni- cessionary environment.
versity students who are interested What lessons have you learned It's worth noting that at the same
While many students dream of money and the ones who can offer systemic culture of striving to be
in start-ups? that the economy has
owning their own successful busi- advice to aspiring entrepreneurs. "number two"—a propensity to join
ness, few of them venture out to For you see, a business owner was larger companies, climb the corpo- I'd recommend that [t]here lies opportunity for a resourceful taken a hit, technol-
do so because of the risks involved. also once a student who was think- rate ladder and achieve success anyone interested in individual offering a timely solution. ogy becomes cheaper
and the cost of start-
It is a fact that 80% of new busi- ing of an idea and how to market through direct reports and an exec- start-ups first gain ex-
nesses close within the first year. that idea. On Wednesday Novem- utive title reporting to the presi- perience working at someone else's from running your own ing your own business has lessens.
And with an economy still recover- ber 26 2009, Sarah Prevette, the dent. start-up. The culture, uncertainty business/what advice can you give It is an unprecedented time in his-
and hectic pace of a new business now? tory to start your own company—
ing from an ugly recession, the founder of Sprouter (a website that The more visibility we can lend
chances that a student will take a “enables collaboration and net- to innovation and innovators, to is not for everyone—try it on first Start-ups are ongoing evolutions: leverage free online tools, tap into
risk and open up a business is very working between entrepreneurs new start-ups, the more we will en- and see how it fits before commit- constant iterations, tiny refine- online networks of support and ac-
unlikely. globally”), came to New College to courage entrepreneurship as a vi- ting your life to it. ments and adjustments to pre-laid tively engage with your market.
Still, some do find a passion in speak to students. She had a won- able career choice. Internship can be an incredible plans. Aim to fail early. Establish
foot in the door and beneficial to what your minimal viable product The advice that Sarah shared
working for themselves and being derful presentation where she an-
both parties—the student and the is and push to bring it to market as with us was definitely invaluable
the one to make the important de- swered questions, as well as gave What was your inspiration to be-
cisions. As a result, they begin to students a chance to talk to her come an entrepreneur? start-up. Resources are hard to fast as possible. Get feedback be- and aspiring entrepreneurs should
execute their brilliant idea and face to face. She taught them im- I was incredibly fortunate to have come by in the early days of a com- fore you even establish a proto- play close attention to what she is
open up shop. While some do not portant lessons such as toughening had the opportunity to gain experi- pany and a willing (unpaid) worker type—build your product around saying, as good advice on starting
make it to their fiscal year, some go up, especially in face of failure. ence in a start-up while still a stu- is happily accepted in most places. true, established needs. Embrace your own business is hard to come
above and beyond. I also had the privilege of getting dent. Learning first-hand under an The intern benefits from hands on failure as a process of progression, by these days.
York University students have the a chance to interview her. Here is exceptionally charismatic and vi- experience and the entrepreneur i.e. strive to fail early, fail often
privilege of getting to meet and what she said: sionary entrepreneur was a great through having an extra set of and commit to constant evaluation. Laksh vig, Contributor
hear successful individuals speak initiation. Being submersed in an hands to help. Establish your key metrics, build a
and share their success stories at How did you come up with the idea environment that fostered ongoing dashboard and hold yourself ac-
events and conferences. Many of of being an entrepreneur, as entre- innovation, had a culture of un- Many people (especially students) countable for the numbers.
them are from large corporations preneurship is not a well-publi- yielding passion and an ongoing want to run a business but are un-
and well-established businesses. cized profession and as it can be a sense of urgency was intoxicating. able to come up with the start up What, in your opinion, are the ad-
Who York students do not often get ‘risky business to enter into’? It was that first experience that funds needed. What advice do you vantages (or disadvantages) of as-
to meet are the business owners Entrepreneurship has tradition- gave me the desire and confidence have for students in this position? piring entrepreneurs starting up a
themselves: the ones who took the ally not been an actively promoted to pursue my own ideas. A number of programs, loans and business during a recessionary eco-
risks, invested all of their time and profession. In Canada, there is a grants exist that are meant to fa- nomic climate?

59 Arbitrage | Winter 2010 | NFSA.ca NFSA.ca | Winter 2010 | Arbitrage 60

 NFSA
2.0
Career Planner By Nicki Mossavar-Rahmani & David Tal

Wealth Management Edition

W
e all want success, to graduate from school with our options unhindered
by obstacles, big or small. And for those interested in pursuing a career
in finance, the potential for that success can be mind-boggling. We’ve
all read stories of those big names, those market tycoons we all hope to fol-
low, with their seven-figure plus salaries, generous stock options, private jets
and exclusive parties.
These things and more are all possible to you. But on this winding, yellow
brick road of life, there are many forks in the road—choices that if made
poorly, may pull you away from your ultimate goals. To protect yourself, to
ensure that the choices you make are the right ones for you and your dreams,
we at the NFSA Arbitrage have developed the NFSA Career Planner.
In this second edition, we will outline what the financial industry is, but
this time, the particular field we will be focusing on is: Wealth Management.
Over the next several pages, we will briefly explain the field of wealth man-
agement, some of the top jobs within it, the specific designations and educa-
tion one would need to pursue a career in this field, the key skills and
attributes need, salary ranges for each main job and the key duties/respon-
sibilities one would expect to carry out in this field.
In all, it is our hope that by reviewing the information inside this NFSA Ca-
reer Planner, planning out your financial career will become that much easier,
helping you to make the right turns along life’s yellow brick road until you
reach the point where the world will become yours for the taking ... .
[NOTE: Following this edition of the Arbitrage, all further Career Planners
will be released separately from the Arbitrage between each issue. This is
in line with the Arbitrage’s future growth strategy.]
 CAREER PLANNER

What is Finance and the Finance Industry?

The Basics

T
his is a doozie of a question. Depending on whom you ask, you’ll be sure to hear a variety
of answers. But essentially, finance is the management of money or other assets. Excit-
ing! Well, for those who don’t quite share our level of enthusiasm, bare in mind that
money and how it’s managed is what determines much of how the world works. The better an
understanding you have of money, and the rules that regulate it (finance and accounting), the
more power you will have to determine your own future.
Intrigued? We hope so. Because the next several pages will try to answer the second
half of your question: what is the financial industry? To be clear, this is like asking what is
food industry or the entertainment industry. The finance industry, just like these two exam-
ples, can be very ambiguous, as it covers so many different fields, from business consulting to
Reflection

money & wealth management to commercial banking and even insurance. For the purposes
of this first edition of the NFSA Career Planner, we will be focusing only on the investment
Self

banking industry, since (from our experience) it tends to be the most popular amongst finance
graduates.
But not to worry, in later editions of the Arbitrage, the NFSA Career Planner will slowly
expand to cover the many other fields within the financial industry and, in so doing, we hope
to do our part in supporting our readership in their future career ambitions.

The Canadian Finance Industry at a Glance:

Job Profiles

The finance industry has enabled Canada to be one of the most attractive places to conduct
business, as well as to invest. Canada possesses the following characteristics that have help
create such a great environment: a relatively stable political environment, stable economic
trends, skilled and productive labour force, moderate taxation, and not overly regulated trade
barriers, fiscal and monetary policies. Consequently, the finance industry provided Canada
with a capital market that is one of the most sophisticated and efficient in the world. This in-
dustry runs on the basis of the flow of capital and financial instruments. The following is an
informal order, dictated by this flow of capital, which categorizes the affected parties of in-
dividuals in the Canadian society.
Selection

Users of Capital and Investors:

*Non-financial corporations, such as retailers, food distributors, machinery and electronic man-
ufacturers, raw material extractors, etc
*All levels of the government, including municipalities
*Retail Investors (known as private investors who trade and own financial instruments for their
own personal accounts and not for another company or organization
*Institutional Investors (companies that trade and own large volumes of financial instruments
for business purposes)
*Foreign and non-residential investors (including both retail and institutional types)
Directory
Training

Financial Intermediaries:
These organizations are the parties that offer all sorts of services to users of capital to help

62 Arbitrage | Winter 2010 | NFSA.ca

 CAREER PLANNER

them manage and invest it. They act as a bridge between the investors and the capital mar-

The Basics
kets. Some can also act as brokers for their clients or as investment dealers or both, in primary
and secondary securities markets.

*Schedule I, II, & III Chartered Banks

*Investment Funds
*Trust Companies
*Credit Unions
*Insurance Companies
*Sales Finance and Consumer Loan Companies

Reflection
Capital Markets:

Self
*Stock Exchanges. These are auction markets where buyers and sellers of securities trade with
each other, they include: Toronto Stock Exchange (TSX), TSX Venture Exchange, Bourse de Mon-
treal, Winnipeg Commodity Exchange (WCE), Canadian Trading and Quotation System (CNQ)
*Over-the-counter (OTC) markets. They are the unlisted equity markets that are also dealer
markets. They consist of a network of dealers who trade with each other, where these dealers
act as market makers as only the dealers’ bid and ask quotations are entered. Many of these
markets are privately owned, computerized networks that match orders. These trading sys-
tems are mostly owned by private brokerage firms. Most bonds and money market securities
trade in these OTC markets. Three of the most popular OTC electronic trading systems: Can

Job Profiles
Deal, CBID, CanPX.

The Clearing System:

All financial intermediaries in Canada are required to clear their securities and financial in-
struments through the Canadian Depository for Securities (CDS). It is a central clearing system
where it handles the daily settlements between the intermediaries. They help reduce the
number of certificates and amount of cash that has to change hands among the members. CDS
creates and confirms the cash balances for each firm, compiles the clearing settlement sheets

Selection
and notify their members of the securities that they need to deliver in order to balance their
accounts.

Government Regulation:
Securities Commissions (in Ontario, it’s the Ontario Securities Commission), are official gov-
ernment agencies that are responsible for overseeing and supervising the self-regulatory or-
ganizations, as well as regulating the Canadian securities industry. These activities fall under
Directory

provincial jurisdiction; thus, the securities commissions are provincial government agencies.
Training

They delegate the authority to make procedures and regulations that governs the financial in-
stitutions and capital markets to these self-regulatory bodies.
Office of the Superintendent of Financial Institutions (OSFI) is the regulatory body for
all the federally regulated financial institutions. It does not oversee the Canadian securities
industry.

NFSA.ca | Winter 2010 | Arbitrage 63

 CAREER PLANNER

Canada Deposit Insurance Corporation (CDIC) is a federal crown corporation that insures
The Basics
eligible deposits up to $100,000 per depositor in each of its member institutions.

Self-Regulatory Organizations include:

*Investment Dealers Association of Canada (IDA)
*Mutual Fund Dealers Association (MFDA)
*Listed Stock Exchanges, such as the TSX
*Canadian Investor Protection Fund (CIPF)
*Mutual Fund Dealers Association Investor Protection Corporation (MFDA IPC)
*Ombudsman for Banking Services and Investments (OBSI)
Reflection

T
he most important step in deciding upon a career path is self-reflection. Understanding
Self

both who you are and what you want when it comes to work, to life, it can seem trivial—
but, for most, these can be the toughest questions to answer. Statistics show that most
individuals in this current market place will likely switch jobs, and even whole careers, be-
tween four to ten times over the course of their lives. So take comfort, at least, in the knowl-
edge that you’re not alone in your uncertainty about what you want to do with the rest of
your life.
But even if you are one of the lucky few who know exactly what career they want to
strive for right at this very moment, there are a few things to consider: (1) you may start your
favoured job and soon after find that you hate it, (2) an amazing job opportunity might arise
Job Profiles

that may pull you into a different field, (3) life may kick you in the butt and you may never
reach that favoured career, (4) life may kick you in the butt really hard and yank you out of
your favoured job, i.e. recession, downsizing, etc, and (5) you may work in your favoured job
for a few years and then find that life has introduced you to completely new interests that
you would like to pursue. These possibilities, and many more, are what career advisors call
life.
No matter what you plan for your future, your life will always take you in directions
that you would never have imagined. Thus, while choosing a career may be difficult, or maybe
even unrealistic in this day-and-age, you can at least gauge what underlying needs drive you
and plan from there. Below are a number of categories we at the Arbitrage put together to
help you in this self-reflectionary process. Ask yourself the questions below and compare them
to the job descriptions that will follow. By doing this, we hope the fog in front of your career
Selection

Categories for Career Interests:

*Skills: What kind of technical and/or occupational skills are you enthusiastic in utilizing on a
daily basis? What kind of skills are you passionate about to attaining?
*Knowledge and Expertise: What kind of knowledge do you most look forward to gain? What
kind of knowledge and/or expertise are you most passionate about to working toward that will
support career ambitions?
*Experience: What are the types of challenges and on-the-job intrinsic rewards that will make
Directory

your future career satisfying and fulfilling?

Training

*Abilities: What abilities do you have to contribute and which ones do you want to improve
on?
*Opportunities for growth: What future opportunities are you hoping to achieve? How high up
the corporate ladder do you hope to climb over the course of your career?)
*Prestige and Recognition: How much respect and popularity does your ego need [i.e. if a lot,

64 Arbitrage | Winter 2010 | NFSA.ca

 CAREER PLANNER

lot, then chose an occupation that commands a great deal of respect and popularity from your

The Basics
peers, co-workers and the general public]? What level of authority do you envision your ideal
position possessing in regards to your team, your division and your firm?
*Work & Team Environment: What kind of surroundings are you most comfortable working
within?
*Characteristics of Personalities: Do you feel that the qualities of your personality allow you
to meet and exceed the demands of your ideal job?
*The Objective of the Job: Does the purpose of your desired career align with the core orga-
nizational goals of your ideal company, as well as your own career expectations and objectives?
Will your desired career allow you to achieve a sense of accomplishment when reflecting on
your job on a daily basis?
*Responsibilities & Duties: Do you believe that you will be passionate and enthusiastic about

Reflection
the responsibilities and tasks you will likely carry out on a daily basis?
*Salary Levels: What is your target salary range that you hope to aspire to over the course of

Self
your career?

W
hat is Wealth Management?
[The following description of Wealth Management was sourced from WiseGeek.com]
“Wealth management is a financial service concept that emerged as a specific offering
during the decade of the 1990’s. Generally, firms that offer a wealth management package

Job Profiles
provide a wide range of financial services to their clients that will include such basic elements
as estate planning, asset management, and even private banking options. The use of a wealth
management service can be helpful when an individual has amassed a large amount of assets
and needs assistance in managing all of them effectively.
“In the best examples of wealth management, the client will be able to take advantage of
a wide range of services that can include the management of everything from the mundane
daily task of balancing the (chequebook) to long range planning for a trust or estate. One of
the more popular aspects of a wealth management package is managing investments and man-
aging the tax planning that is associated with the task. The financial service can also be helpful
for people who are just beginning to amass a large number of assets, and would rather spend
time dealing with other issues than managing finances.
“Because wealth management is a form of private banking services, persons wishing to enter

Selection
the field usually prepare by obtaining educational credentials that are directly connected to
financial disciplines. A wide range of professionals may be involved in the extension of wealth
management services. Attorneys, certified public accountants, insurance professionals and
brokers may all be involved in providing services to wealth management clients. In recent
years, accredited courses and seminars on wealth management have become more common
as the demand for this type of service has increased.
“The services included with a wealth management package will often include management
of the investment portfolio, with brokers empowered to buy and sell on behalf of the client.
Attorneys will help to structure family corporations, trusts, and other components that can
make estate planning more complete. When it comes to taxes, a wealth management service
will also prepare all reports and returns, offer advice to the client on tax elements involved
Directory
Training

with various aspects of the estate, and in general provide advice that is in the best interests
of the client.”

The following are general descriptions of the five basic divisions within an average investment
banking institution. Within each will be an outline of some of the main job positions that em-

NFSA.ca | Winter 2010 | Arbitrage 65

 CAREER PLANNER

body each said division, in addition to the general accountabilities & duties, key skill require-
The Basics

ments, estimated range of salary, education, certification & licenses, and additional informa-
tion that are generally necessitated by each position.
When reading these overviews, please consider them as a kind of realistic job preview that
will help prepare you for making the career choices of your future. These overviews are by
no means definitive and will likely be out of date within another few months (as the financial
industry tends to evolve quite regularly), thus while we recommend using this guide to aid in
your career choices, we also recommend reviewing secondary sources before you make your
final decision.
Keeping this, as well as your self-reflection answers, in mind, we hope you find the following
career planner section quite eye opening.
Reflection
Self

JOB PROFILE LEGEND JOB ASPECT LEGEND

*FINANCIAL PLANNER (Pg 37) *Field Description
Job Profiles

*Common Job Titles

*MUTUAL FUNDS SALES REP.
(Pg 40) *General Accountabilities
& Duties
*Key Skill Requirements
*INVESTMENT ADVISOR
(Pg 44)
*Estimated Range Of Salaries

*Education, Certification
& Licenses
*Additional Information
Selection

FINANCIAL PLANNERS
Directory
Training

Financial planners and wealth managers help individuals plan their financial futures. How are
you going to cover your retirement needs? What do you have to do today to put your children
through college? This work can be personally and financially rewarding and requires excellent
interpersonal skills. A good financial planner understands investments, taxes, estate planning
issues and knows how to listen. This work can be done within a company such as IDS Financial
Services or by yourself, as a sole proprietorship.

66 Arbitrage | Winter 2010 | NFSA.ca

 CAREER PLANNER

The Basics
Administrative Assistant:
EARNINGS
*$25,000 to $35,000 a year
REQUIREMENTS
*University degree or college diploma
*Computer skills
RESPONSIBILITIES
*Providing administrative support for senior advisors, including faxing, photocopying, and mail-

Reflection
ing.

Self
Beginning Financial Planner
EARNINGS
*$35,000 to $45,000 a year
REQUIREMENTS
*Experience in the field
RESPONSIBILITIES
*Providing administrative support for senior advisors, including faxing, photocopying, and mail-
ing; doing some preparation of financial plan reports.

Job Profiles
Assistant Consultant
EARNINGS
*$40,000 to $55,000 a year
REQUIREMENTS
*Skills and experience
*Completion of financial planning courses
RESPONSIBILITIES
*Preparing complete financial plan reports from notes by senior financial consultants.

Financial Consultant / Planner

Selection
EARNINGS
*$55,000 to $80,000 a year
REQUIREMENTS
*Ability to work independently with clients
*Certified Financial Planner (CFP) designation recommended
RESPONSIBILITIES
*Taking on direct responsibility for clients; meeting with and advising clients; managing junior
planners.

Vice-President
Directory

EARNINGS
Training

*$80,000 to $150,000 a year

REQUIREMENTS
*Experience in team management
RESPONSIBILITIES
*Meeting with and advising clients; managing a team; expanding the business through sales
contacts.

NFSA.ca | Winter 2010 | Arbitrage 67

 CAREER PLANNER
The Basics

*Assess clients' financial needs for retirement, tax and estate planning.
*Formulate financial plans and solutions to fulfill client objectives.
*Implement financial plans that are monitored and reviewed regularly.
*Stay informed on current investment products and changes in the markets and tax laws.
*Provide comprehensive wealth management advice, including guidance on investment and
portfolio management issues, to high net worth clients.
*Refer to, or consult with, tax, legal and estate planning specialists as needed.
*Prospect for new clients and build an established business.
Reflection
Self

A good financial planner understands investments, taxes, estate planning issues and
knows how to listen. In order to be effective, financial planners must be familiar with
legal restrictions and laws concerning retirement plans, tax shelters, insurance, and
Job Profiles

trusts. They must be skilled at working with numbers and budgets and be able to un-
derstand complicated financial and legal documents. In addition, they should be ar-
ticulate, persuasive, and have some decent selling ability. To make it in financial
planning you need to know the details of various investments, tax law, estate planning
strategies and you need to be good at marketing yourself and listening to your cus-
tomers.
Selection

The median salary for financial planners job rankings issue was $70,000 in 2008. People
that work for companies earn somewhat less and franchisees do the worst. The salary
distribution in this business is highly skewed.
Bear in mind, of course, that it takes a number of years to build a strong clientele
so that in the early days money will not flow quickly into a practice.
Directory
Training

68 Arbitrage | Winter 2010 | NFSA.ca

 CAREER PLANNER

The Basics
If you're thinking about becoming a financial planner, you should have at least a bach-
elors degree in a business related area. An MBA can be helpful but is not required at
all.
To receive professional accreditation, they are expected to first complete financial
planning courses such as those leading to CSI's Financial Management Advisor Designa-
tion, which are the Canadian Securities Course (CSC), the Professional Financial Plan-
ning Course (PFPC) and the Wealth Management Techniques (WMT) course.
Financial planners are increasingly called on to have the CFP (Certified Financial

Reflection
Planner) designation. To become a CFP, you must past an exam approved by the CFP
Board of Standards which covers over 175 topics in investing and financial planning.

Self
Today, there are approximately 59,000 CFP's. The number has more than doubled in
the last decade.

Job Profiles
U. S. News and World Report listed the position of financial planner as one of the twenty
hottest professions for the future. They note that the entry of baby-boomers into middle age
with a bewildering array of investment choices will make financially planning a really hot pro-
fession in the future. This said, financial planners interviewed recently point out that getting
a solo practice going as a financial planner today can be difficult and highly competitive.

Selection

MuTuAL FuNDS SALES REPRESENTATIvE

Mutual Fund Sales Representatives (MFSRs) are employed throughout the financial services in-
dustry by mutual fund dealers and independent financial planning firms. Personal Banking Rep-
Directory
Training

resentatives and many Insurance Sales Agents may also become licensed to sell mutual funds.
As with Investment Advisors, Mutual Fund Sales Representatives are expected to build their
own clientele and serve investors' investment, retirement and estate planning needs. Unlike
Investment Advisors, who are licensed to deal in stocks and bonds in addition to mutual funds,
Mutual Fund Sales Representative are only licensed to advise on and sell mutual fund invest-
ment products.

NFSA.ca | Winter 2010 | Arbitrage 69

 CAREER PLANNER
The Basics

JUNIOR ANALyST
EARNINGS
*$50,000 to $100,000 a year
REQUIREMENTS
*Bachelor’s degree in commerce, economics, or a related field
RESPONSIBILITIES
*Mathematical modeling; performing statistical analyses; note-taking; basic researching.
Reflection

SENIOR ANALyST
Self

EARNINGS
*$100,000 to $200,000 a year
REQUIREMENTS
*3 to 6 years of experience
*Further commerce-related education, such as an MBA
*Possibly certified as a CFA (Chartered Financial Analyst)
RESPONSIBILITIES
*More dealing with clients and company management; possibly specializing in a specific sec-
tor (for example, telecommunications).
Job Profiles

PORTFOLIO MANAGER
EARNINGS
*$150,000 to $1,000,000 a year
REQUIREMENTS
*At least 5 years of experience as a senior analyst
*Proven track record of good investment picks
RESPONSIBILITIES
*Much more responsible for selling the fund to potential investors; performing less analyses;
directing analysts.

ChIEF INvESTMENT OFFICER

Selection

EARNINGS
*$1,000,000 a year or more
REQUIREMENTS
*10 or more years of experience
RESPONSIBILITIES
*Directing all analysts and portfolio managers within department; motivating and evaluating
staff; handling other management responsibilities; directing philosophy of investment strategy
of company.
Directory
Training

70 Arbitrage | Winter 2010 | NFSA.ca

 CAREER PLANNER

The Basics
# Build a book of business and open accounts for new clients.
# Analyze client needs and recommend mutual funds best suited to investment, retirement
and estate planning goals.
# Receive and execute orders to buy or sell mutual fund units.
# Provide clients with account information and performance report

Reflection
Self
New Mutual Fund Sales Representatives are usually paid a salary. Commission or fee-based
compensation is usually phased-in after the first year. New representatives can earn between
$30,000 and $50,000. More experienced representatives can earn $150,000 or more.

Job Profiles
To become registered as a Mutual Fund Sales Representative, a candidate must first fulfill pro-
ficiency requirements set out by industry regulators. One way is to complete CSI's Investment
Funds in Canada (IFC) Course or CSI's Canadian Securities Course (CSC). A 90-day training
program must also be completed.

Selection
InveSTmenT aDvISoR
Investment Advisors (IAs) work for investment dealers that trade in securities -- the largest
firms in Canada are owned by banks, but there are also a number of independent ones. This
Directory
Training

job puts you face-to-face with investors, so you must be registered with securities regulators
to be able to provide investment advice and buy and sell investment products including
stocks, bonds and mutual funds.
Investment advisors buy and sell many different types of investments (bonds, mutual funds,
options, and term deposits) for their clients. They may be self-employed, or they may work in
banks or other large financial institutions.

NFSA.ca | Winter 2010 | Arbitrage 71

 CAREER PLANNER
The Basics

LEVEL 1 Assistant to Investment Advisor

EARNINGS
*$30,000 to $40,000 a year
REQUIREMENTS
*Canadian Securities Course (CSC)
*Familiarity with business computer software
RESPONSIBILITIES
*Assisting advisors; doing research; maintaining computer databases; performing basic admin-
Reflection

istrative duties.
Self

LEVEL 2 Investment Advisor

EARNINGS
*$35,000 to $100,000 or more a year, based entirely on commissions
REQUIREMENTS
*Bachelor’s degree
RESPONSIBILITIES
*Buying and selling investment products for clients; helping clients structure and maintain an
investment portfolio; staying on top of developments in the business world and financial mar-
Job Profiles

kets.

Senior Investment Advisor / Partner

EARNINGS
*$100,000 to $300,000 or more a year
REQUIREMENTS
*Over 10 years of experience as an investment advisor
RESPONSIBILITIES
*Buying and selling investment products for clients; helping clients structure and maintain an
investment portfolio; staying on top of developments in the business world and financial mar-
kets; performing management and administrative duties.
Selection

*Monitor stock market and industry trends likely to affect clients' investments.
*Meet with clients, by phone or in person, to discuss these trends.
Directory

*Advise clients on the products or services that suit their needs and objectives.
Training

*Arrange purchase or sale of stocks, bonds and other investment products on behalf of in-
vestors.
*Prospect, build and retain a client base.
*Stay up-to-date on current investment products and markets

72 Arbitrage | Winter 2010 | NFSA.ca

 CAREER PLANNER

The Basics
Income varies greatly, depending on the number and type of clients advisors have, where they
work, and the value of commissions they receive. Investment advisors may earn as little as
$30,000 a year or upwards of $150,000.
The Canadian Securities Institute (CSI) reports that most investment advisors can earn at
least $100,000 after 3 to 5 years. However, it is important to note that annual earnings are
closely linked to the rise and fall of markets and the strength of the economy.

Reflection
Self
Most IAs have earned a university or a college degree. Before they can become registered to
provide investment advice to clients, IAs must meet proficiency requirements set out by se-
curities regulators. These include completion of CSI's Canadian Securities Course (CSC), the
Conduct and Practices Handbook Course (CPH), plus the 90-day Investment Advisor Training

Job Profiles
Course (IAT). Within 30 months of approval for registration, IAs must also complete CSI's Wealth
Management Essentials Course (WME).
IAs must meet continuing education (CE) requirements throughout their careers to maintain
registration. Many choose to complete CSI's Derivatives Market Specialist Program or the Cana-
dian Insurance Course (CIC), allowing them to apply for additional licensing to deal in options,
futures or life insurance, and offer broader services to clients.

Selection
N
ow that you have a somewhat clearer understanding of the various divisions and career
opportunities within finance (and investment banking in particular), we hope that you
apply the self-knowledge that you developed in the Self*Reflection section to select a
field in finance that best suits you. If one of those fields lies in the pages you just looked
through, then you should now have at least a somewhat better idea as to what duties you may
need to prepare for and what levels of education you may need to obtain to reach your career
ambitions in that said field.
To this end, the next and final section of this career planner will provide you with more in-
formation regarding the various designations that exist in the financial industry and the various
Directory
Training

processes to attain each designation. To learn what designation is best for you, refer to the
Education, Certification & licences section of your chosen field to see which ones best suit
your chosen career path.
It is our hope that upon perusing the information below (alongside the information you just
reviewed) you will have a more complete understanding about what your future holds in store
and how you can claim it!

NFSA.ca | Winter 2010 | Arbitrage 73

 CAREER PLANNER

N
The Basics
ote: Some of these designations are available in both Canada and the US, while others
are only offered in the US. Who knows where your career will take you, so we figured
we would stay safe and offer information on designations from both sides of the border.

Canadian Securities Institute Designations:

The CSI offers a variety of respected designations that are highly prized in the Canadian market
place; those include: Chartered Professional (Ch. P), Fellow of CSI (FCSI)™, Derivatives Market
Specialist (DMS), Canadian Investment Manager (CIM)™ and Financial Management Advisor
(FMA).
Each designation has their own extensive requirements to obtain them, but to learn
more, see: www.csi.ca/
Reflection

Certified Financial Planner® (CFP®):

Self

Those with the CFP® designation have demonstrated competency in all areas of finance related
to financial planning. Candidates complete studies on over 100 topics, including stocks, bonds,
taxes, insurance, retirement planning and estate planning. The program is administered by
the Certified Financial Planner Board of Standards Inc. In addition to passing the CFP certifi-
cation exam, candidates must also complete qualifying work experience and agree to adhere
to the CFP Board's code of ethics and professional responsibility and financial planning stan-
dards. (Definition sourced from www.investopedia.com/)
For more information, see: http://www.fpsc.ca/
Job Profiles

Chartered Financial Analyst (CFA®):

This designation is offered by the CFA Institute. To obtain the CFA charter, candidates must
successfully complete three difficult exams and gain at least three years of qualifying work
experience, among other requirements. In passing these exams, candidates demonstrate
their competence, integrity and extensive knowledge in accounting, ethical and professional
standards, economics, portfolio management and security analysis. (Definition sourced from
www.investopedia.com/)
For more information, see: http://www.cfainstitute.org/

Certified Fund Specialist (CFS):

Selection

As the name implies, an individual with this certification has demonstrated his or her expert-
ise in mutual funds and the mutual fund industry. These individuals often advise clients on
which funds to invest in and, depending on whether or not they have their license, they will
buy and sell funds for clients. The Institute of Business & Finance (IBF), provides training for
the CFS, and the course focuses on a variety of mutual fund topics, including portfolio theory,
dollar*cost averaging and annuities. (Definition sourced from www.investopedia.com/)

Chartered Financial Consultant (ChFC):

Individuals with the ChFC designation have demonstrated their vast and thorough knowledge
of financial planning. The ChFC program is administered by the American College. In addi-
Directory
Training

tion to successful completion of an exam on areas of financial planning, including income tax,
insurance, investment and estate planning, candidates are required to have a minimum of
three years experience in a financial industry position. (Definition sourced from www.in-
vestopedia.com/)

74 Arbitrage | Winter 2010 | NFSA.ca

 CAREER PLANNER

Chartered Investment Counsellor (CIC):

The Basics
Given by the Investment Counsel Association, this is a designation which CFA charter holders
who are currently registered investment advisors can study for. The focus of the CIC program
is portfolio management. In addition to proving their high level expertise in portfolio man-
agement, these individuals must also adhere to a strict code of ethics and provide character
reference letters. (Definition sourced from www.investopedia.com/)

Certified Investment Management Analyst (CIMA):

This designation focuses on asset allocation, ethics, due diligence, risk measurement, invest-
ment policy and performance measurement. Only individuals who are investment consultants
with at least three years of professional experience are eligible to try to obtain this certifica-

Reflection
tion, which signifies a high level of consulting expertise. The Investment Management Con-
sultants Association offers the CIMA courses. (Definition sourced from

Self
www.investopedia.com/)
For more information, see: http://www.imca.org/

Certified Public Accountant and Personal Financial Specialist:

Those holding the CPA designation have passed examinations on accounting and tax prepa-
ration, but their title does not indicate training in other areas of finance. So, those CPA holders
who are interested in gaining expertise in financial planning in order to supplement their ac-
counting careers need to become certified as personal finance specialists (PFS). The PFS

Job Profiles
designation is awarded by the American Institute of Certified Public Accountants to those
who have taken additional training and already have a CFP designation. (Definition sourced
from www.investopedia.com/)
For more information, see: http://www.aicpa.org/

Chartered Life Underwriter (CLU):

This designation is issued by the American College and those who hold it work mostly as in-
surance agents. The CLU designation is awarded to persons who complete a 10*course pro-
gram of study and 20 hours worth of exams. The course covers the fundamentals of life and
health insurance, pension planning, insurance law, income taxation, investments, financial and
estate planning, and group benefits. (Definition sourced from www.investopedia.com/)

Selection
Chartered Accountant (CA):
Being a Chartered Accountant is a valuable designation to put beside your name regardless
of your career path, but by combing a Charter Accountant designation alongside your finan-
cial degree (and other financial designations and certifications) is a killer combination in the
eyes of just about any employer in this competitive market place.
To obtain this designation, you will have had to complete all the appropriate university
courses (or equivalent training), before being admitted into the CA training program where
you will take part in a kind of multiyear apprenticeship. Specifically, you will gain work ex-
perience in a CA Training Office under the supervision of experienced CAs. As well, during
your training you will be continually assessed on your development by CA board represen-
Directory
Training

tatives, before finally submitting to a three day Uniform Evaluation (UFE) to gauge your knowl-
edge and place you on the next step to your CA designation.
For more information, see: http://www.cica.ca/index.aspx

NFSA.ca | Winter 2010 | Arbitrage 75

 CAREER PLANNER

CMA (Certified Management Accountant):

The Basics

Similar to a CA, a CMA is a valuable asset to place in your Cv. CMAs focus primarily on man-
agerial accounting and are usually often found in industry. Following university graduation,
CMA candidates write a two*day CMA Entrance Examination that tests business knowledge,
analytical thinking and written communication.
If you pass, you enter through series of successive phases in the CMA Strategic Lead-
ership Program that will take 24 months to complete and include substantial practical work
experience in the field. A final examination and assessment take place at the end of this pro-
gram before one attains their CMA designation.
For more information, see: http://www.cma-canada.org/
Reflection

CGA (Certified General Accountant):

The CGA incorporates aspects from both the financial and management streams of account-
Self

ing. While not as prestigious as the other accounting designations, the CGA offers practical
tools for those interested in the accounting field. Attaining this designation is much more
flexible than the other accounting designation and can be started while attending university.
For more information, see: http://www.cga-ontario.org/
Job Profiles
Selection
Directory
Training

76 Arbitrage | Winter 2010 | NFSA.ca

SPONSORS

THANK YOU TO OUR SPONSORS

SEE YOUR LOGO HERE!

If you or your organization is interested in
sponsoring the NFSA, please contact:
patrick.dydynski@nfsa.ca OR
CorporateRelations@nfsa.ca

ASEE YOUR LOGO HERE! SEE YOUR LOGO HERE!

If you or your organization is interested in If you or your organization is interested in
sponsoring the NFSA, please contact: sponsoring the NFSA, please contact:
patrick.dydynski@nfsa.ca OR patrick.dydynski@nfsa.ca OR
CorporateRelations@nfsa.ca CorporateRelations@nfsa.ca

SEE YOUR LOGO HERE! SEE YOUR LOGO HERE!

If you or your organization is interested in If you or your organization is interested in
sponsoring the NFSA, please contact: sponsoring the NFSA, please contact:
patrick.dydynski@nfsa.ca OR patrick.dydynski@nfsa.ca OR
CorporateRelations@nfsa.ca CorporateRelations@nfsa.ca

SEE YOUR LOGO HERE! SEE YOUR LOGO HERE!

If you or your organization is interested in If you or your organization is interested in
sponsoring the NFSA, please contact: sponsoring the NFSA, please contact:
patrick.dydynski@nfsa.ca OR patrick.dydynski@nfsa.ca OR
CorporateRelations@nfsa.ca CorporateRelations@nfsa.ca

77 Arbitrage | Winter 2010 | NFSA.ca

 AFFILIATES

THANK YOU TO OUR AFFILIATES

York Business Network Degroote Finance Association

Ryerson University Finance Society Management and Economics Students Association

York University Finance and Industry Club York Investment Club

Undergraduate Economics Council Financy Society

SEE YOUR LOGO HERE! SEE YOUR LOGO HERE!

If your organization is interested in If your organization is interested in
affiliating with the NFSA, please contact: affiliating with the NFSA, please contact:
patrick.dydynski@nfsa.ca OR patrick.dydynski@nfsa.ca OR
ClubRelations@nfsa.ca ClubRelations@nfsa.ca

NFSA.ca | Winter 2010 | Arbitrage 78

 DIRECTORY
DIRECTORY CONTENTS
ASSOCIATIONS 79
EMPLOYERS 80
UNIVERSITIES 81
COLLEGES 82
STUDENT CLUBS 82
GOVERNMENT SERVICES 84
HUDGE FUNDS 84
INSURANCE 84
INVESTMENT ORG. 84
INVESTOR SERVICES 84
MUTUAL FUNDS 85
PROVINCIAL SECURITIES 85
STOCK EXCHANGES 85
TAXATION 85
ASSOCIATIONS
Advocis
390 Queens Quay West Suite 209
Toronto, Ontario M5V 3A2
Tel: (416) 444-5251 or (800) 563-
5822 Fax: (416)444-8031 www.
advocis.ca
Association for Financial
Professionals of Canada
4520 East West Highway, Suite
750
Bethesda, Maryland
20814
Tel: (301) 907-2862
Fax: (301) 907-2864
www.afponline.org
CFA Institute
560 Ray C. Hunt Drive
Charlottesville, Virginia
22903-2981
Tel: (800) 247-8132
Fax: (434) 951-5262
E-mail: info@cfainstitute.org
www.cfainstitute.org
CGA-Canada
4200 North Fraser Way, Suite 100
Burnaby, British Columbia
79 Arbitrage | Winter 2010 | NFSA.ca
V5J 5K7
Tel: (604) 669-3555 or
(800) 663-1529
Fax: (604) 689-5845
E-mail: public@cga-canada.org
www.cga-canada.org
CGA-Alberta
E-mail: general@cga-alberta.org
www.cga-alberta.org
CGA-British Columbia
E-mail: info@cga-bc.org www.
cga-bc.org
CGA-Manitoba
E-mail: info@cga-manitoba.org
www.cga-manitoba.org
CGA-New Brunswick
E-mail: cganb@nbnet.nb.ca
www.cga-nb.org
CGA-Newfoundland
E-mail: office@cganl.org www.
cganl.org/cga
CGA-Northwest Territories/
Nunavut
E-mail: admin@cga-nwt-nu.org
www.cga-nwt-nu.org
CGA-Ontario
240 Eglinton Avenue East Toronto,
Ontario
M4P1K8
Tel: (416) 322-6520 or
(800) 668-1454
Fax: (416) 322-5594
E-mail: info@cga-ontario.org
www.cga-ontario.org
CGA-Prince Edward Island
E-mail: contact@cga-pei.org
www.cga-pei.org
Ordre des CGA du Quebec
E-mail: ordre@cga-quebec.org
www.cga-quebec.org
CGA-Saskatchewan
E-mail: general@cga-
saskatchewan.org
www.cga-saskatchewan.org
CMA Canada
Mississauga Executive Centre
One Robert Speck Parkway, Suite
1400
Mississauga, Ontario L4Z 3M3
General Information:
Tel: (905) 949-4200 or
(800) 263-7622
E-mail: info@cma-canada.org
www.cma-canada.org
Certified Management
Accountants of Alberta
E-mail: info@cma-alberta.com
www.cma-alberta.com
Certified Management
Accountants of British Columbia
E-mail: cmabc@cmabc.com
www.cmabc.com
Certified Management
Accountants of Manitoba
E-mail: cmamb@cma-canada.org
www.cma-manitoba.com
Certified Management
Accountants of New Brunswick
E-mail: cmanb.admin@nb.aibn.
com www.cmanb.com
Certified Management
Accountants of Newfoundland
E-mail: atilley@cma-nl.com www.
cma-nl.com
Certified Management
Accountants of Northwest
Territories
www.cma-canada.org/nwt.asp
CMA Nova Scotia, Prince Edward
Island, Bermuda, and the
Caribbean
E-mail: lmurphy@cma-ns.com
www.cma-ns.com
Certified Management
Accountants of Ontario

70 University Avenue, Suite 300
Toronto, Ontario
M5J 2M4
Tel: (416) 977-7741 or
(800) 387-2991
Certified Management
Accountants of Quebec
E-mail: admission@cma-quebec.
org www.cma-quebec.org
Certified Management
Accountants of Saskatchewan
E-mail: info@cma-sask.org www.
cma-saskatchewan.com
Financial Planners Standards
Council
902 - 375 University Avenue
Toronto, Ontario
M5G 2J5
Tel: (416) 593-8587 or
(800) 305-9886
Fax: (416) 593-6903
E-mail: inform@fpsccanada.org
www.fpsccanada.org
EMPLOYERS
Accenture
www.accenture.com
Bank of Canada
234 Wellington Street
Ottawa, Ontario
K1AOG9
Tel: (613) 782-8111
www.bankofcanada.ca
BearingPoint
www.bearingpoint.com
Barclays Global Investors
Brookfield Place
161 Bay Street
Suite 2500
Toronto, Ontario M5J 2S1
Tel: (416) 643-4000
www.barclaysglobal.com
BMONesbitt Burns
DIRECTORY
1 First Canadian Place
100 King Street West Dundee Securities Corporation
49th Floor 1 Adelaide Street East
Toronto, Ontario M5X 1H3 27th Floor
Tel: (416) 359-4000 Toronto, Ontario
www.bmonb.com M5C 2V9
Tel: (416) 350-3250
Boston Consulting Group www.dundeewealth.com
Brookfield Place 181 Bay Street
Suite 2400 Toronto, Ontario M5J Genuity Capital Markets
2T3 Scotia Plaza, Suite 4900 40
Tel: (416) 955-4200 Fax: (416) King Street West P.O. Box 1007
955-4201 www.bcg.com Toronto, Ontario M5H 3Y2
Tel: (416) 603-6000 www.
Capgemini genuitycm.com
www.capgemini.com
Goldman Sachs Canada
CIBC Mellon 77 King Street West Suite 3400,
www.cibcmellon.ca P.O. Box 38
Toronto, Ontario M5K 1B7 www2.
CIBC World Markets goldmansachs.com
Brookfield Place, 161 Bay St.
P.O. Box 500 HSBC Global Asset Management
Toronto, Ontario (Canada)
M5J 2S8 70 York Street, Suite 600
Tel: (416) 594-7000 Toronto, Ontario, M5J 1S9
www.cibcwm.com Tel: (416) 868-8500
www.hsbc.ca
Citigroup
123 Front Street West IBM Global Business Services
Toronto, Ontario Jarislowsky Fraser Limited 1010
M5J 2M3 Sherbrooke St. West Suite 2005
Tel: (416) 947-5500 Montreal, Quebec
www.citigroup.com H3A2R7
Tel: (514) 842-2727
Credit Suisse Fax: (514) 842-1882
1 First Canadian Place www.ibm.com/services
100 King Street West, Suite 2900
Toronto, Ontario Calgary
M5X 1C9 140 4th Avenue SW
Tel: (416) 352-4500 Suite 1640
www.credit-suisse.com Calgary, Alberta
T2P3N3
Deloitte Tel: (403) 233-9117
National Office Fax: (403) 233-9144
2 Queen Street East, Suite 1200
P.O. Box 8 Toronto
Toronto, Ontario 20 Queen Street West, Suite 3100
M5C 3G7 Toronto, Ontario
Tel: (416) 874-3875 M5H 3R3
Fax:(416)874-3888 Tel: (416)363-7417
www.deloitte.ca Fax: (416) 363-8079
NFSA.ca | Winter 2010 | Arbitrage 80
 DIRECTORY

M5W 2X6 H3G IMS

Vancouver Tel: (416) 863-7411 Tel: (514) 848-2424 ext. 2779
555 West Hastings Street, Suite www.scotiacapital.com Fax: (514) 848-4502
2080 http://johnmolson.concordia.ca
P.O. Box 12129 State Street Canada
Vancouver, British Columbia www.statestreet.ca Dalhousie University
V6B 4N6 www.dal.ca
Tel: (604) 676-3612 TD Bank Financial Group
Fax: (604) 676-3616 100 Wellington Street West, 3rd Laurentian University
www.jfl.ca Floor www.laurentian.ca
Toronto, Ontario
J.P. Morgan M5K 1A2 University of Manitoba
www.jpmorgan.com www.td .com/experience www.umanitoba.ca

McKinsey & Company UBS Securities Canada McGill University

110 Charles Street West
Toronto, Ontario
M5S 1K9
Tel: (416) 313-3700
Fax: (416) 313-2999
www.mckinsey.com
Merrill Lynch Canada
Brookfield Place
181 Bay Street, Suite 400
Toronto, Ontario
M5J 2V8
Tel: (416) 369-7400
http://gmi.ml.com/canada
Morgan Stanley Canada
Brookfield Place
181 Bay Street, Suite 3700
Toronto, Ontario
M5J 2T3
Tel: (416) 943-8400
www.morganstanley.com
Royal Sun Alliance
10 Wellington St. East
Toronto, Ontario
M5E 1L5
Tel: (416) 366-7600
Fax: (416) 367-9869
E-mail: info@rsagroup.ca www.
rsagroup.ca
Scotia Capital
Scotia Plaza
40 King St. West, 64th Floor
P.O. Box 4085, Station A
Toronto, Ontario
81 Arbitrage | Winter 2010 | NFSA.ca
www.ubs.com
UNIVERSITIES
Acadia University
www.acadiau.ca
University of Alberta
www.bus.ualberta.ca
University of British Columbia
Sauder School of Business 2053
Main Mall
Vancouver, British Columbia
V6T 1Z2
Tel: (604) 822-8500
Fax: (604) 822-8521
E-mail: bcom@sauder.ubc.ca
www.sauder.ubc.ca
Brock University
www.bus.brocku.ca
University of Calgary
www.haskayne.ucalgary.ca
Carleton University
www.sprott.carleton.ca
Concordia University
The John Molson School of
Business
1455 de Maisonneuve Blvd. West
Suite GM 403
Montreal, Quebec
www.mcgill.ca/desautels
McMaster University
www.degroote.mcmaster.ca
Memorial University of
Newfoundland
www.business.mun.ca
Mount Allison University
www.mta.ca
University of New Brunswick
www.unb.ca
Nipissing University
www.nipissingu.ca/business
University of Ottawa
www.telfer.uottawa.ca
Queen’s University
http://business.queensu.ca
Ryerson University
www.ryerson.ca
University of Saskatchewan
www.commerce.usask.ca
St. Francis Xavier University
www.stfx.ca
Simon Fraser University
http://business.sfu.ca
Master of Financial Risk
Management Program http://

business.sfu.ca/mfrm
Global Asset and Wealth
Management MBA http://
business.sfu.ca/gawm
University of Toronto
Rotman Commerce
E-mail: rotmancommerce.info@
utoronto.ca
www.rotmancommerce.utoronto.
ca/site3.aspx
University of Toronto at
Mississauga Department of
Management
E-mail: mgt.utm@utoronto.
ca wwwl.utm.utoronto.ca/
management
Master of Management &
Professional Accounting Program
www.utoronto.ca/mmpa
University of Toronto at
Scarborough Department of
Management E-mail: admissions@
scar.utoronto.ca www.utsc.
utoronto.ca/~mgmt
University of Victoria
www.business.uvic.ca
York University
http://www.yorku.ca/web/
futurestudents/programs/
template.asp?id=332
COLLEGES
Algonquin College
www.algonquincollege.com
Canadore College
www.canadorec.on.ca
Centennial College
www.centennialcollege.ca/
business
Conestoga College Institute of
Technology and Advanced
Learning
www.conestogac.on.ca
George Brown College
www.georgebrown.ca
Georgian College
www.georgianc.on.ca
Humber College
www.humber.ca
Loyalist College
www.loyalistcollege.com
Mohawk College of Applied Arts
and Technology
www.mohawkcollege.ca
Seneca College
www.senecac.on.ca
Sheridan College
wwwl.sheridaninstitute.ca
STUDENT CLUBS
Acadia University Business
Society
http://business.acadiau.ca/
BusLSchool/ home/ABS/index.
htm
University of Alberta
Business Students’ Association
School of Business Building
Office 2-06
Tel: (780) 492-2454
Fax: (780) 492-7413
E-mail: bsa@ualberta.ca
www.bsaonline.ca
University of British Columbia
Commerce Undergraduate
Society www.cus.sauder.ubc.ca
UBC Consulting Club
E-mail: Consult! ngclub@club.
ams.ubc.ca
www.cus.sauder.ubc.ca/clubs/
consulting
NFSA.ca | Winter 2010 | Arbitrage
DIRECTORY
UBC Finance Club
E-mail: ubcfinanceclub@gmail.
com
www.ubcfinance.com
Brock University
Business Students’ Association
E-mail: admin@brockbsa.com
www.brockbsa.com
Finance & Investment
Group (BFIG)
E-mail: president@brockfinance.
com
www.brockfinance.com
University of Calgary
Commerce Undergraduate
Society
E-mail: cus@ucalgary.ca
www.ucalgary.ca/-cus
Financial Management Group
Tel: (403) 220-6777
E-mail: fmg@ucalgary.ca www.
ucalgary.ca/~fmg/index.html
MBA Consulting Alliance www.
mbaca.com
MBA Society www.ucalgary.ca/
mbasociety
Carleton University
Sprott Business Students’ Society
829 Dunton Tower
1125 Colonel By Drive
Ottawa, Ontario, K1S 5B6
Tel: (613) 520-2600 ext. 2708
Fax: (613) 520-4427
E-mail: sbss@sprott.carleton.ca
www.carleton.ca/sbss
Concordia University
Commerce & Administration
Students’ Association (CASA)
www.casa-jmsb.ca
Commerce Graduate Students’
Association
www.cgsa-concordia.com
Finance & Investment
Students’ Association
1455 de Maisonneuve Blvd. W.
Suite GM 211-06
82
 DIRECTORY
Montreal, Quebec
H3G 1M8
Tel.: (514) 848-2424 ext. 7437
Fax: (514) 848-7436
E-mail: fisa@jmsb.concordia.ca
http://fisaonline.ca
Dalhousie University
Commerce Society
6152 Coburg Road
Halifax, Nova Scotia
B3H 3J5
Tel: (902) 494-2427
E-mail: commerce@dal.ca
www.dalcommerce.com
University of Manitoba
Commerce Students’ Association
181 Freedman Crescent, Room
144
Winnipeg, Manitoba
R3T 5V4
Tel: (204) 474-7363
Fax: (204) 269-0861
E-mail: admin@csaweb.ca
www.csaweb.ca
University of Manitoba Finance
Organization
www.umfo.com
McGill University
Management Undergraduate
Society
1001 Sherbrooke St. West, Suite
016
Montreal, Quebec, H3A 1G5
Tel: (514) 398-7292
Fax: (514) 398-8362
www.musonline.mcgill.ca
McMaster University
DeGroote Commerce Society
Michael G. DeGroote, Room 133
1280 Main Street West
Hamilton, ON
L8S 4M4
Tel: (905) 525-9140 ext. 23451
www.business.mcmaster.ca/
commsoc
DeGroote Finance
Association E-mail:
degrootefinanceassociation .com
83 Arbitrage | Winter 2010 | NFSA.ca
MBA Association
Tel: (905) 525-9140 ext. 24206
E-mail: mbaassn@mcmaster.ca
www.business.mcmaster.ca/
MBAA/artman/
publish/index.shtml
University of New Brunswick
Business Society
Tilley Hall, Room 308
Tel: (506) 453-3521
E-mail: bbasoc@unb.ca
http://www.unbf.ca/clubs/
bizsociety
Nipissing University
Business Community www.nubc.
ca
University of Ottawa
Finance Society
www.financesociety.ca
MBA Student Association (MBASA)
www.management.uottawa.ca/
mbasa
Ottawa Student Investment Club
www.admin.uottawa.ca/osic
Queen’s University
Commerce Society http://
comsoc.queensu.ca
Ryerson University
Business Students Association
(BSA)
Tel: (416) 979-5000 ext. 7394
E-mail: bsa@ryerson.ca
Ryerson Commerce Society
Tel: (416) 979-5000 ext. 4217
E-mail: rcs@ryerson.ca
www.rcsonline.ca
Finance Society
575 Bay St., RBB1-137
Toronto, Ontario
M5G 2C5
Tel: (416) 979-5000 ext. 7394
E-mail: rufs@ryerson.ca
www.rufs.ca
University of Saskatchewan
Finance Students’ Society www.
edwards.usask.ca/studentclubs/
finance
Simon Fraser University
Finance Club
8888 University Drive
Burnaby, B.C.
V5A 1S6
E-mail: finclub@sfu.ca
www.financeclub.ca
University of Toronto
Rotman Commerce Finance
Association
E-mail: rcfa@utoronto.ca
www.utoronto.ca/
commercegroups/ufa/
Undergraduate Commerce Society
www.utmucs.ca
Management and Economics
Students’ Association www.mesa.
ca
University of Victoria
UVic Commerce Students’ Society
Business and Economics Building
Room 113
P.O. Box 1700
Station CSC
Victoria, British Columbia
V8W 2Y2
Tel: (250) 721-6432
Fax: (250) 472-4509
www.uviccss.com
University of Western Ontario
HBA Association (HBAA) http://
hbaa.ivey.ca
Western Investment Club E-mail:
wic.executive@gmail.com www.
usc.uwo.ca/clubs/investment
Wilfrid Laurier University
SBE Students’ Council
Tel: (519) 884-1970 ext. 3253
E-mail: 000sbesc@machl.wlu.ca
University of Windsor
Commerce Society
Tel: (519) 253-3000 ext. 3487
http://web2.uwindsor.ca/clubs/
comsoc
York University

Schulich Finance Association
http://sfa.schulich.yorku.ca/
default.asp
York Investment Club
www.yorkinvestmentclub.com
York University Finance &
Industry Club (YUFIC)
www.yufic.com
York Business Network http://
www.yorkbusinessnetwork.com
GOVERNMENT SOURCES
Bank of Canada
www.bankofcanada.ca or www.
banqueducanada.ca
Canada Customs and Revenue
Agency
www.ccra-adrc.gc.ca
Canadian Investment and Savings
www.cis-pec.gc.ca
Government of Canada;
intergovernmental links
www.intergov.gc.ca
NASD
www.nasd.com
Office of the Superintendent of
Financial Institutions
www.osfi-bsif.gc.ca
Statistics Canada
www.statcan.ca
Strategis from Industry Canada
www.strategis.ic.gc.ca
U.S. Securities and Exchange
Commission
www.sec.gov
HEDGE FUNDS
Canadian Hedge Fund Watch
www.canadianhedgewatch.com
EHedge.com
www.e-hedge.com
Hedge Fund Association
www.thehfa.org
Hedge Fund Centre
www.hedgefundcenter.com
Hedge Fund Intelligence
www.hedgefundintelligence.com
Hedge Index Tremont
www.hedgeindex.com
TASS Research
www.tassresearch.com
VAN Hedge Fund Advisors
International
www.vanhedge.com/definit.htm
INSURANCE
Financial Advisors Association of
Canada (ADVOCIS)
www.advocis.com
Insurance Canada
www.insurance-canada.ca
INVESTMENT ORGANIZATIONS
Canadian Association of Financial
Planners
www.cafp.org
Canadian Deposit Insurance
Corporation
www.cdic.ca
Canadian Depository for
Securities
www.cds.ca
Canadian Derivatives Clearing
NFSA.ca | Winter 2010 | Arbitrage
DIRECTORY
Corporation
www.cdcc.ca
Canadian Investor Protection
Fund (CIPF)
www.cipf.ca
Canadian Securities Institute
www.csi.ca
CSI Global Education Inc.
200 Wellington Street West, 15th
Floor,
Toronto, Ontario M5V 3C7
Phone: 416-364-9130
Toll-free: 1-866-866-2601
Fax: 416-359-0486
Toll-free fax: 1-866-866-2660
Canadian Society of Technical
Analysts
www.csta.org
EDGAR
www.edgar-online.com
International Organization of
Securities Commissions
www.iosco.org
Investment Dealers Association of
Canada
www.ida.ca
Mutual Fund Dealers Association
of Canada
www.mfda.ca
National Association of Securities
Dealers Regulation
www.nasdr.com
North American Securities
Administrators Association
www.nasaa.org
System for Electronic Document
Analysis and Retrieval
www.sedar.com
World Federation of Exchanges
www.world-exchanges.org
84
 DIRECTORY

www.ific.ca Yukon
INVESTOR SERVICES www.gov.yk.ca/depts/community
News Organizations and
Advice for Investors Publications
www.adviceforinvestors.com
Canada Newswire STOCK EXCHANGES
BigCharts www.newswire.ca
www.bigcharts.com The American Stock Exchange
Canoe (Canadian Online Explorer) www.amex.com
Canadian Financial Network www.canoe.ca
www.canadianfinance.com CBOE
www.cboe.com
Globeinvestor
www.globeinvestor.com PROVINCIAL SECURITIES CNQ
ADMINISTRATORS www.cnq.ca
Investorwords
www.investorwords.com Alberta Bourse de Montreal
www.albertasecurities.com www.m-x.ca
Investopedia
www.investopedia.com British Columbia Nasdaq
www.bcsc.bc.ca www.nasdaq.com
Iunits
www.iunits.com Manitoba New York Stock Exchange
www.msc.gov.mb.ca www.nyse.com
National Financial Services
Network Ontario Toronto Stock Exchange
www.nfsn.com www.osc.gov.on.ca www.tsx.ca

Quicken Financial Network Quebec TSX Venture Exchange

www.quicken.ca www.cvmq.com www.tsx.ca

Stockhouse New Brunswick Winnipeg Commodity Exchange

www.stockhouse.ca www.gnb.ca/0062 www.wce.ca

Yahoo Finance Newfoundland and Labrador

www.ca.finance.yahoo.com www.gov.nf.ca/gsl/cca TAXATION

Northwest Territories Canada Customs and Revenue

www.gov.nt.ca/RWED/iea Agency
MUTUAL FUNDS www.ccra-adrc.gc.ca
Nova Scotia
Fund Library www.gov.ns.ca/nscc Canadian Tax Foundation
www.fundlibrary.com www.ctf.ca
Prince Edward Island
Globefund www.gov.pe.ca/caag/ccaid-info/ Ernst & Young (Canada)
www.globefund.com index.php3 www.ey.com

Investment Counsel Saskatchewan KPMG

www.investment.com www.sfsc.gov.sk.ca www.kpmg.ca

Investment Funds Institute of Territory of Nunavut PricewaterhouseCoopers

Canada www.gov.nu.ca/jusice www.pwc.com
85 Arbitrage | Winter 2010 | NFSA.ca