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The Voice of Canada’s Investment Funds Industry

Best Interest Standard and Targeted Reforms

In June 2016 the Canadian Securities Administrators issued a consultation paper proposing a regulatory best interest standard (BIS) and a series of targeted reforms with the regulatory goal of addressing perceived shortcomings in the existing standard and rules governing the advisor-client relationship. However not all CSA jurisdictions were aligned on the consultation – B.C. in particular disagreed with the need for a BIS arguing that it will only create uncertainty for registrants and may be unworkable in the current regulatory and business environment.

The industry has always publicly supported the principle of placing the interests of the client ahead of the interests of the registrant but feels this is best met through reforms that address gaps in the existing regulatory framework. As such, IFIC supports reforms that improve the investment process but has cautioned against adopting new, overriding and vague concepts that may have detrimental effects on the client/advisor relationship.



Documents

2017
Text: Safeguarding Access to Financial Advice for Canada's Middle Class (June 15, 2017)

2016
IFIC Calls for Measured Practical Approach to Regulatory Reforms

IFIC Submission — CSA — CSA Consultation Paper 33-404 — Proposals to Enhance the Obligations of Advisers, Dealers, and Representatives toward Their Clients (September 20, 2016)

IFIC Executive Summary — IFIC Response to CSA Consultation Paper 33-404: Proposals to Enhance the Obligations of Advisers, Dealers, and Representatives Toward their Clients

IFIC Urges Regulators to Adopt a Strategic, Fact-Based Approach to Reforms

IFIC Submission – Expert Committee – Financial Advisory and Financial Planning Alternatives (June 17, 2016)

IFIC Supports Targeted Approach to Building Advisor-Client Relationship

2013
CSA Consultation Paper 33-403: a legal analysis by Laura Paglia, Torys (November 11, 2013)

2011
Fiduciary Duties and Financial Advisors Frequently Asked Questions and Answers (August 2011)