Legislation for a "healthy industry"

Legislation for a "healthy industry"

Legislation for a "healthy industry"

“A far better way to protect consumers is to regulate all advisors,” said Pollock. “This will preserve choice, ensure that the millions of Ontarians now benefiting from financial advice will continue to have access, and it will establish industry-wide standards for all financial advisors.”

It will also bridge the gap between sectors; a common complaint with the current system, as an advisor found guilty of misconduct in one sector (for example, selling insurance) can continue to practice in another sector (for example, selling mutual funds).

A single system would deal with complaints and has the power to suspend or revoke an advisor’s registration.

“This will protect the advisors and protect the industry,” says Chiang. “It’s extra work and takes more time (for the advisor), but that is necessary for a healthy industry.”

Roundtable sessions held by the Ontario Ministry of Finance in January invited industry groups to debate the merits of specific regulation for financial planners in Ontario.

A polarizing debate across the industry, there are many advisors out there oppposed to increased regulation, which could be deemed being under the thumb of 'big brother.'
 

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1 Comments
  • Harley Lockhart, CFP, CLU, CH.F.C. 2014-02-21 12:01:18 PM
    To claim this Ontario legislation would "be deemed being under the thumb of 'big brother'" is disingenuous at the least. The barrage of regulatory creep the industry has faced is a sure indication we are already "under the thumb of 'big brother'".
    This legislation applies directly to the Advisor, unlike IIROC and MFDA, for example, which are regulators of dealers.

    Attempts to interfere with client relationships by regulators of transactions have made it clear, from international example, that negative unintended consequences for the consumer can result from poorly thought out changes by those who have never experienced a client relationship and therefore have limited understanding of the process. Investors with less than $250,000 in investable assets receive far more benefit from an advisory relationship than simply a well-balanced portfolio!
    This legislation will work with existing regulators. freeing them to focus on their specific responsibilities and do what they do best.
    It is clear that someone will regulate the relationship. Other professions in Canada, law, medicine, accounting, engineers, etc. have demonstrated the wisdom of practitioners accepting the responsibility to monitor their own.

    Disclaimer--I am the current Chair of Advocis.
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