SecPac, Burns Fry Win Fed Approval
TORONTO -- Burns Fry Ltd. and Security Pacific Corp. said the Federal Reserve Board has approved a restructuring of their relationship.
Security Pacific will maintain a 30% equity interest in Burns Fry Holdings, the parent of Burns Fry Ltd. This will be treated by Security Pacific and the relevant U.S. regulatory authorities as a portfolio investment, they said.
Employees of Burns Fry and its subsidiaries will own a 70% equity interest in Burns Fry Holdings, through an employee holding company. They will have an option and a right of first refusal on Security Pacific's investment.
Upgrade for Employee Control
Burns Fry's president and chief executive, John MacNaughton, said in a press release that the restructuring "further solidified the employee control over the management and destiny of Burns Fry."
The companies said Burns Fry will acquire certain U.S. securities operations of Security Pacific, consisting of Burns Fry Hoare Govett and Security Pacific futures.