The Canadian Securities Administrators have released an action plan with objectives the organization intends to pursue over the next three years, with enhanced disclosure requirements for ETFs, a possible ban on commissions and a best-interest standard for advisors topping the list, according to an Insurance Journal
The CSA intends to implement new requirements to ensure investors “can rely on rules and regulations that provide them with clear and relevant information to make informed decisions, that only properly authorized persons provide investment services to the publice, that their obligations toward their clients are well understood and aligned with their clients’ interests, and that market intermediaries are properly supervised.”
According to the Insurance Journal
, the CSA intends to implement requirements for a point-of-sale disclosure for ETFs. The organization is also considering ways to deal with conflicts of interest arising from embedded commissions, the Journal
reported. Regulators plan to consult with stakeholders on whether embedded commissions in investment funds “should be addressed to better align the interests of investment fund managers and dealers/representatives with those of the investors they serve, and implement a regulatory proposal as appropriate,” the CSA action plan stated.
The CSA is also planning to hold public consultations on whether it should formalize advisors’ duty to always act in their clients’ best interests, the Journal