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© Copyright 2000 Rogers Media. The following article first appeared in the September 2000 edition of
BENEFITS CANADA magazine.
High closure
RT Capital has settled with the OSC. This month's issue is about what really happened.
by Kevin Press
The RT Capital high closing scandal is the biggest story this industry has seen since the collapse of
Confederation Life. But if the country's securities regulators find instances of high closings by other
firms--as some insiders expect will happen--then RT's saga has been mere preamble.
Stories like this are a great test for a magazine like BENEFITS CANADA. Our reporting stands out, in large
part, thanks to the relationships we enjoy with key industry players. Because of their willingness to share
insight, we're able to bring you coverage that I believe is more balanced and in-depth than you'll find
anywhere else.
It is one of the pleasures of working at this magazine. Our monthly schedule affords us time to bring
together thoughtful analysis of stories like this one. In addition to that, the immediacy of
benefitscanada.com allows us to stay on top of the latest news.
Several of our columnists offer their perspective in this month's issue. We have a feature story written by
Robin Pond, a principal at Morneau Sobeco in Toronto that offers a fundamentally different theory on what
happened inside RT Capital, and why.
I've conducted an interview with Michael Wilson, RT's new president and chairman, to discuss how the firm
plans to go forward.
And Tim Griffin, the firm's former president and chief executive officer, has granted us an exclusive
interview. That story leads this month's Industry section.
There are a couple of key revelations in our coverage.
First, it is not clear--as has been reported in the daily press--that the high closings increased the
compensation of the traders involved. As Pond writes in his feature, it is questionable how much the high
closings impacted pay.
Second, the language in the settlement document released by the Ontario Securities Commission (OSC) in July
differs significantly from that found in the initial OSC statement of allegations. The OSC's charge that
RT's directors knew about the high closings, is absent from the final document.
You'll find a sizeable excerpt of the settlement as a sidebar to Pond's feature.
Griffin's resignation deserves more thoughtful comment than it has thus far received. Leaders of his
stature are rare. Not only was Griffin highly regarded as a senior executive at RT Capital, he has played a
key leadership role in the Canadian pension asset management industry for years.
He has also been a great source of guidance and support to our team here as a member of benefits canada's
editorial advisory board.
"I hold him in the highest regard," says Harry Gibbs, a fellow advisory board member and vice-president,
investments at the Workplace Safety & Insurance Board in Toronto. That's something you hear a lot about
Tim.
Griffin did the right thing in resigning. He correctly recognized that his departure would help RT Capital
turn an important corner. Still, his departure is a loss. Griffin has been a bright light in this business
for many years.
I hope we see him back.
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