22 June, 2018 13:30
Both thecanadian Association of securities trading (IIAC), that independent Brokers in the financial security of Canada and theinvestment funds Institute of Canada (IFIC) welcomes the draft amendment to the rules of the canadian securities administrators (CSA), but one of them continues to pose a downside.
In fact, the institute believes that the elimination of the deferred acquisition costs ” will reduce the choice of some investors.” “The IFIC is still of the opinion that investors should have the freedom to choose the investment products and services that best meet their financial goals,” says the association.
“We believe that the reforms of the CSA [to reinforce the confidence of investors and enable them to obtain good results] will achieve these goals and that they will be used to increase the protection of investors,” said Paul C. Bourque, president and ceo of the IFIC.
Measures that are “harmonized”
The associations have called the measures “balanced” and ” harmonised “, which will be ” positive for investors, without hitting the competition on the market by introducing changes that could with a disproportionate adverse effect on smaller investors and firms “, according to Brokers, independent financial security.
They have also highlighted that the proposals give sufficient flexibility with regard to the best interest of clients.
“The proposed reforms are moving away from the standard all-encompassing and vague to act in the best interests of the client, including the scope of application is vague ; that could confuse the advisers and the clients ; which might give rise to negative consequences for investors, advisors, and financial markets,” said Michelle Alexander, vice-chair of the IIAC.
A unanimous vote on the retention of commissions as part of
Unanimously, the associations welcomed the retention of the commissions built in. “The IIAC supports the proposal to continue to allow commissions embedded in mutual funds “, she summarized.
“As an advisor, I share, as many of our members, the fear that an abandonment of the commissions integrated can be disadvantageous for customers, especially those with smaller accounts, and that paying a fee would not be a viable option for them,” pointed out Scott Findlay, chairman of the board of directors of the association.