Tag Archives: Best Interest Standard

CSA Proposals to Enhance Firms’ and Advisors’ Obligations Towards Clients (IIAC Blog)

CSA Proposals to Enhance Firms’ and Advisors’ Obligations Towards Clients (IIAC Blog)

The IIAC filed a submission with the Canadian Securities Administrators (CSA) in response to its Consultation Paper 33-404: Proposals to Enhance the Obligations of Advisers, Dealers, and Representatives Toward Their Clients.

The IIAC has carefully examined the Consultation Paper, identifying some areas of constructive reform, while questioning the merit of some proposals.

Please click here to view our news release. You can access our full submission here.

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Client’s Best Interest Not Effectively Achieved by a Specific Rule or Regulation (IIAC Blog)

Client’s Best Interest Not Effectively Achieved by a Specific Rule or Regulation (IIAC Blog)

Professor Mary Condon, former Commissioner of the Ontario Securities Commission (OSC), wrote an Op-Ed in the July 2016 issue of Investment Executive (IE) outlining the OSC’s position on the “best interest” standard.

She argued eloquently that a client best interest standard should be imposed on financial advisors and investment dealers. In her words, investors deserve no less. Condon puts it succinctly: a best interest standard “puts the client’s interests first” in all dealings.

The IIAC weighed in. In a Letter to the Editor I argued regulators should get the rules, guideposts and right culture in place, … Continue reading

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Letters to the Editor: BCSC stance on “best interests” not divisive

Letters to the Editor: BCSC stance on “best interests” not divisive

The Staff Editorial in the June 2016 issue of Investment Executive (IE) criticized the motives of the British Columbia Securities Commission (BCSC) in its decision not to consult on a “best interest” standard. The IIAC took issue with this position in a Letter to the Editor.

The editorial alleges that the BCSC is unwilling to consider the merits of an overarching client “best interest” standard on the grounds that it has decided not to solicit opinion on the “best interest” standard in the April, 2016 Canadian Securities Administrators (CSA) Consultation Paper. It also alleges that … Continue reading

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IIAC Reacts to CSA Proposals to Improve the Client-Registrant Relationship (IIAC Blog)

IIAC Reacts to CSA Proposals to Improve the Client-Registrant Relationship (IIAC Blog)

The Canadian Securities Administrators (CSA) has published for comment a paper which proposes regulatory action to improve the client-registrant relationship.

The IIAC’s preliminary observations are as follows:

The IIAC shares the grave reservations of the provincial regulators in BC, Quebec, Alberta, Manitoba and Nova Scotia. The proposed client best interest standard would lead to uncertainty and confusion on the part of advisors and clients, with some advisors and firms restricting products and services, and some clients having unrealistic expectations. Litigation and increased legal costs will likely arise. 

The IIAC agrees with the BCSC that an … Continue reading

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Fiduciary Standard for Advisors Not the Answer (IIAC Blog)

Fiduciary Standard for Advisors Not the Answer (IIAC Blog)

The Canadian Securities Administrators (CSA) has focused on fiduciary duty to ensure dealers and their advisors act in the best interests of their client. Acting in a client’s best interest means ensuring client interests are paramount; conflicts of interest are avoided; clients are not exploited; clients are provided with full disclosure; and services are performed reasonably prudently.

In my letter to the editor appearing in the October 2015 edition of Investment Executive, I noted that Canada’s investment industry fully supports a high standard of conduct for retail advisors. Industry efforts over the past four years to … Continue reading

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