Call grows for ‘one’ fiduciary standard

Call grows for ‘one’ fiduciary standard

Call grows for ‘one’ fiduciary standard

In the US, billions of dollars have been paid by financial companies in regulatory and legal settlements, but very little money actually finds the pockets of investors in cases brought to the Justice Department.

The SEC however, is collecting penalties and other gains from institutions and individuals.

“Sometimes the SEC puts the dollars it collects into a fund to be distributed to a class of victims the agency has identified; other times it forces defendants to repay those investors directly,” according to an article in the New York Times.

The SEC says it tries, whenever possible, to extract money from wrongdoers on behalf of investors. And an analysis of financial crisis lawsuits cited most recently on the S.E.C.’s website shows that 23 of them generated nearly $2.6-billion for investors, according to the piece.

Kivenko feels the OSC should do the same, and the regulator responded Thursday, saying the “OSC develops and evaluates regulatory provisions to create a best interest duty.”

“There’s been no agreement on implementing standards,” he said. “Most of the provincial bodies are on the fence and you have to wonder how they’ll come together on issues like this when the national body is finally formed.”

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