Future of SROs Deserves Intentional Review – IFIC Responds to IIROC White Paper
Toronto, ON – April 21, 2016 – The Investment Funds Institute of Canada (IFIC) has responded to proposals contained in the white paper issued by the Investment Industry Regulatory Organization of Canada (IIROC): The Public Policy Implications of Changes to Rules Regarding Proficiency Upgrade Requirements and Directed Commissions on the IIROC Platform. In its submission, IFIC recommends that IIROC not proceed with a change to what is known as the “270 Day Rule”, while supporting further work to understand the implications of allowing advisors to direct portions of commissions to a personal corporation.
IFIC’s submission states that it would not be in the public interest for IIROC to remove the current requirement that firms and advisors operating under an IIROC registration be fully qualified (the 270 Day Rule), and instead allow firms and individuals to offer only mutual funds and exchange-traded funds.
“The proposal might create efficiencies for some members of IIROC; however, it would destabilize the MFDA and its membership, causing a disorderly and costly restructuring of the SRO regulatory system,” says Joanne De Laurentiis, president and CEO, IFIC. “We agree that the future structure of the SROs is an important and legitimate question to consider, especially in light of the imminent Capital Markets Regulatory Authority, but such major structural change should occur through a deliberate, fulsome process rather than as a supplemental outcome of a specific rule change.”
IFIC acknowledges that the proposal on directed commissions would be of interest to advisors but cautions that further analysis and consultation are needed before a final decision is made.
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The Investment Funds Institute of Canada is the voice of Canada’s investment funds industry. IFIC brings together 150 organizations, including fund managers, distributors and industry service organizations, to foster a strong, stable investment sector where investors can realize their financial goals. By connecting Canada’s savers to Canada’s economy, our industry contributes significantly to Canadian economic growth and job creation. The organization is proud to have served Canada’s mutual fund industry and its investors for more than 50 years.
For more information:
Sara Clodman, Senior Manager, Public Affairs, firstname.lastname@example.org, 416-309-2317