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Millions of Dollars are Unclaimed from Securities Class Action Settlements by Institutional Investors!!! How much money

Millions of Dollars are Unclaimed from Securities Class Action Settlements by Institutional Investors!!! How much money are you leaving on the table? . Institutions, Portfolio Managers & Advisor’s Fiduciary Duty & Performance Enhancement to Clients in Class Action Claims. Background.

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Millions of Dollars are Unclaimed from Securities Class Action Settlements by Institutional Investors!!! How much money

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  1. Millions of Dollars are Unclaimed from Securities Class Action Settlements by Institutional Investors!!! How much money are you leaving on the table?

  2. Institutions, Portfolio Managers & Advisor’s Fiduciary Duty & Performance Enhancement to Clients in Class Action Claims

  3. Background • Jonathane Ricci, JD, LLM LLB (EQ) • Paul Battaglia, BA (Law), TEP, PFP

  4. Background • Class Action Lawsuits in General • Take Up Rates • Money Left on Table

  5. Background • Professors Cox and Thomas • NYSE – Financial Institutions own nearly 50% of the equity securities listed on • the NYSE and account for 75% of the trading volume • There are now a record 28 active Canadian securities class actions representing • approximately $15.9 billion in outstanding claims. • Class Action Notice and the Disconnect • Its all in the Nuances

  6. Legal Cases • 2005-2006 United States - CANADA it’s only a matter of time • Mutual Funds/Inst. Investors/Portfolio Advisors • Basis of Claim – Breach of Duty (Fiduciary / Common Law)

  7. Legal Cases • Caremark (Delaware) [Information & Reporting Systems] • Who is the ‘Beneficial Owner’ and What Significance does that Have? • Liability and Caremark • Must Monitor Potential Violations of Law • What is your Monitoring System / Limitation of Liability

  8. Legal Cases • Causes of Action Include: Breach of Fiduciary Duty [Best Interests] • Negligence for Failure to Act

  9. Why Advisors Do Not and Should Not Typically Perform Class Action Claim Filing Services • Do They Have Authority to do it? Who is responsible? Who is minding the store? • Claims, Releases and Liability • Outsourcing • Investment Advisor Experience • Business Opportunity

  10. Legislation as the Answer? • National Instrument 81-107 • Independent Review Committee for investment funds • Statutory Duties? • Ontario Securities Commission • IIROC • Fiduciary Duty

  11. Best Practices • Outsource • Implement Internal Policies • Market Your Work [Net Asset Value PR]

  12. BOSTON--(BUSINESS WIRE)-- The SPDR® Morgan Stanley Technology ETF (NYSE:MTK - News) today announced that the fund received payment as an authorized claimant from a class action settlement related to Broadcom Corp. • The total amount payable to the fund is listed below. When the fund calculates its net asset value (“NAV”) per share on Friday, April 29, 2011, it is estimated that the fund’s NAV will be impacted by the receipt of the corresponding payment in the amount stated below based on the shares outstanding as of April 28, 2011. • Fund   Settlement Payment   Shares Outstanding as of April 28, 2011 • Per Share Amount SPDR® Morgan Stanley Technology ETF (Ticker: MTK) • $98,039   3,250,108   $0.0302 • State Street manages $260 billion* in SPDR ETF assets worldwide (as of March 31, 2011) and is one of the largest ETF providers in the US and globally.

  13. QUESTIONS?

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