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The reforms focused on clients achieving independent firms, says IIAC

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August 27, 2018 11:30

Ian Russell

The reforms relating to conflicts of interest and the knowledge of the profile of clients will result in many fees to securities brokers, warns thecanadian Association of securities trading (IIAC).

The president and ceo of the IIAC, Ian Russell, said that the increase in the costs of compliance and the constant pressure on fees and charges will result in operating margins more tight for all the brokers to mutual funds.

Although markets have achieved good results and have maintained many of the dealers afloat, the “reforms focused on the customers” will hurt the performance, particularly that of independent businesses.

The securities companies will seek to reduce the costs

“Companies respond to the increase in expenditures related to reforms focused on the customers by reducing their operating costs and increasing their activities of mergers and acquisitions,” said Mr. Russell.

The costs are higher, he predicted, could force some dealers to move from a model to full-service to a more narrow and more targeted products and wealth management services. Others may choose to include self-directed accounts by councils robotic or a hybrid of on online platforms. Some may also specialize in only high net worth clients, ” he adds.

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