September 25, 2018 11:30
Photo : Freepik
The group of seniors Canadian Association of Retired People (CARP) is asking the Ontario government to reconsider its opposition to a proposal for a regulation of the canadian securities regulatory Authorities to ban the deferred acquisition costs (DSC) and trailing commissions to the discount brokers.
In a letter addressed to the minister of Finance of Ontario, Vic Fideli, CARP stated that the proposed reforms would enable older people to enjoy a financial security improved considerably.
“Older people who have a financial security does not need support in the framework of social protection programmes. Not only will these reforms make the elderly more secure, but they also create savings for the government “, quoted from the letter of the CARP.
On 13 September, Mr. Fideli said that his government did not agree with the proposed amendments by the CSA to prohibit the trailing commissions to the brokers and that it would work with other provinces, territories and stakeholders ” to explore other potential alternatives “.
Many years of consultation
But CARP said that the proposed ban of trailer fees to brokers and deferred acquisition costs had already been the subject of many years of consultation.
“We urge you to reconsider your opposition recently announced in these necessary reforms, which have been developed after six years of consultation with stakeholders, the financial sector, the regulators and the advocates of the investors. They represent an important first step to strengthen the protection of investors and consumers, while improving the efficiency of the market. “
The different agencies do not agree
CARP characterizes the deferred acquisition costs as arrangements are locked-in with commissions extremely high.
However, a number of financial organizations have praised the decision of Fideli, including Advocis, the Financial Advisors Association of Canada and the Independent Financial Brokers of Canada.
In a press release, Advocis has stated that 80% of canadian households had total assets of less than $ 100,000 and that restrict access to financial advice professionals to make them more difficult savings, investments and the realization of their financial goals.