Regulators in the U.S. need to get on with the task of standardizing fiduciary standard, said SEC Chair Mary Jo White Monday – provoking a call for something similar in Canada.
“I think the same issue exists for the OSC, especially when you see a weakened OBSI, which adds to investor woes and what we’ve seen with demographics amongst seniors,” industry critic Ken Kivenko, president and CEO of Kenmar Associates. “Either an enhanced mandate or an investor restitution fund is needed to protect investors from commission-based sales people.”
His comments come as some provincial regulators are analyzing a move to join forces to form a national committee in charge of overseeing the protection of investors, especially seniors depending heavily on retirement funds.
They also come as some in the industry fear a number of advisors will seek to sidestep CRM regulations by focusing on selling segregated funds. That’s also as the OSC’s Statement of Priorities report sparks debate around what the regulator will do to continue moving toward fiduciary duty standards.
The call for national uniformity in the States has now been extended to the treatment of those investors touched by fraud.