By Kate Kingsbury
New financial regulations are rarely introduced without some customary eye-rolling by industry associations. However, the reaction of Quebec’s leading association of independent advisors might be setting a new standard for industry backlash.
The Professional Association of Financial Services Advisors (PAFSA) says it will continue to fight the full implementation of CRM2.
Spokesman Flavio Vani: "I am disgusted with the new regulations, we were never consulted, the regulators crushed us like a steamroller. We are currently investigating how to stop CRM2. We want politicians and regulators to join us at a round table to discuss the impact on advisors and on customers."
The Quebec argument is similar to that from embedded commission advisors across the country, with PAFSA suggesting CRM2 will jeopardize the activities of independent financial advisors.
"Look at what happened in Australia and England,” Vani told gestionnairedefortune.ca, the French-language sister publication of WP. About “25-30% of advisors were forced out of business, plus prices to obtain financial advice increased, hence less well-to-do customers suffered."