Tag Archives: Letter from the President

Worrisome Fragmentation of Global Capital Markets (IIAC Blog)

In my May Letter from the President, I discuss developments that threaten fragmentation of global capital markets. These include Brexit, the rise of populism and protectionism across Europe and elsewhere, and the push for deregulation and dismantling of existing regulations.

Global and regional authorities are working to maintain open and integrated markets to ensure the smooth and efficient functioning of markets. However, there are no quick fixes. Bond and repo market liquidity conditions remain a concern. Automation has the potential to transform the industry and deliver more liquidity to investors.

Click here to read more.

Tagged: capital markets FinTech Letter from the President Liquidity Market Fragmentation

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Letter from the President: Wisdom from the Asian Financial Forum and the lessons for Canadian policymakers (IIAC Blog)

In my latest Letter from the President, I look at the rise of populism in the developed world. The emergence of the so-called “new normal”, marked by weak GDP growth and stagnant incomes, has unfolded as a troubling, persistently enduring economic condition, rather than a cyclical phenomenon. I argue that governments must find consensus for pro-growth policies to break the economic malaise, embracing low tax rates, broad tax reform, stimulative spending, and deregulation, and avoid the impulse for excessive social spending and protectionism. Failure risks political pressure for even more radical policy solutions.

The IIAC has … Continue reading →

Tagged: fiscal policy infrastructure Letter from the President tax policy

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Have We Reached the High Water Mark for Global Regulatory Reform? (IIAC Blog)

The aftermath of the 2007-2008 global financial crisis was an intensive period of financial regulatory reform across the developed world. The urgency and extent of reform, particularly in the early years, laid the ground for excessive and unintended consequences.

There is a growing consensus that the pendulum has swung too far. Regulators in many jurisdictions are taking stock of the impact of reform on markets and on the economy.

We expect that an ongoing review of the reform impact and rising compliance costs for the financial sector will slow the rulemaking process, roll back certain rules, … Continue reading →

Tagged: financial regulation Letter from the President

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Attracting Capital to the Wealth Management Business (IIAC Blog)

My latest Letter from the President describes the opportunities and challenges for the retail investment industry. While we estimate about 30 retail boutiques lost money, on a net basis, in each of the last four years, it is important to stress that many small and mid-sized firms have been profitable.

Firms have made herculean efforts to control cost increases through staffing reductions, increased reliance on technology and out-sourcing, and adjustments to advisor compensation grids.

Firms have also focused efforts on improving advisor productivity through training and continuing education programs. They have boosted their competiveness by providing … Continue reading →

Tagged: Industry commentary industry trends Letter from the President small & independent dealers Wealth management

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The Cost-Benefit Thinking of Securities Regulators Needs to be More Transparent (IIAC Blog)

Cost–benefit analysis is a valuable tool for assessing major public policy decisions, projects and regulations—for example, evaluating prospective regulations in a number of fields, including health, safety and the environment. The nature of securities regulation, however, makes costs-benefit analysis more difficult. Rather than focusing on a particular action, like releasing a pollutant, financial regulation cost-benefit analysis focuses on behavioural and market reactions.

Canadian securities regulators have refrained from conducting formal (quantitative) cost-benefit analysis because it is so complex. However, this not an excuse to avoid it. A more disciplined and rigorous approach to the rule-making process—one … Continue reading →

Tagged: cost-benefit analysis Letter from the President Securities regulation

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The ‘Top of House’ Issues Facing the City of London and Implications for Financial Services (IIAC Blog)

Now that the UK has voted to leave the EU, what will happen next? When the UK government starts to negotiate the withdrawal process, two key issue will need to be taken in consideration. The first, and most essential, will be the terms of the UK’s exit from the EU. The second will be the negotiation of a new relationship between the UK and the EU.

My recent trip to London and meetings with key officials provided the opportunity to better understand the underlying themes and implications of Brexit for the UK, the City of London … Continue reading →

Tagged: Brexit FEMR FICC financial services FMSB Letter from the President

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Facilitating SME Access to Equity Capital (IIAC Blog)

Creating an environment favourable to entrepreneurship, enterprise formation and small business growth requires a broad range of mutually reinforcing and supportive policies.

In my latest Letter from the President, I explore ways to facilitate small and medium-sized business access to equity capital.

Click here to read the IIAC’s recommendations.

Tagged: Letter from the President Small business access to capital

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The Changing Landscape of the Investment Industry (IIAC Blog)

Following two years of back-to-back earnings gains, overall operating profit for Canada’s investment industry declined 13% year-over-year in 2015. Both revenue and profit improved for the industry as a whole in the first quarter of 2016.

Aggregate numbers do not tell the whole story. A tsunami of change continues to batter Canada’s investment industry.

– Fixed costs escalate relentlessly to meet the technology and systems demands of front and back office.

– Regulatory reforms not necessarily efficient as cost/compliance dimension not scoped out beforehand through cost-benefit analysis.

– Larger firms widen their competitive advantage with more … Continue reading →

Tagged: Industry commentary industry trends Letter from the President

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Global Tax Reporting: The IIAC’s Value-Add to Member Firms (IIAC Blog)

International agreements to assist tax authorities to deter and detect tax evasion have come into force in recent years. Most notable are the U.S. Foreign Accounts Tax Compliance Act (FATCA) regulations—and the intergovernmental agreements struck in many countries (including Canada) to implement the requirements—and the OECD Common Reporting Standard (CRS).

The IIAC provided leadership across the Canadian financial sector on global tax reporting requirements.

– The IIAC, through its U.S. Tax Committee and its various working groups, and its OECD CRS Working Group, advocated cost-effective rules to comply with tax reporting requirements.

– It made the … Continue reading →

Tagged: FATCA Ian Russell Letter from the President OECD CRS Tax reporting requirements U.S. QI Regime

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The Five Trends Shaping the Wealth Management Business (IIAC Blog)

On April 7, 2016, I attended the SIFMA’s 38th Annual Private Client Conference in New York City. Senior wealth management professionals, representing firms of all sizes, from throughout the country, focused on the challenges and opportunities of 2016 and beyond. Speakers provided compelling stories and statistics.

In my April Letter from the President I write about the five trends shaping the wealth management business in the U.S. (and elsewhere)—a topic addressed at the conference. The five trends are:

1. Investors are increasingly valuing interactive, comprehensive relationships with their financial advisors, and planning. 2. Investors are seeking … Continue reading →

Tagged: Ian Russell Industry commentary Letter from the President Wealth management

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