Regulation like being in a hurricane, says Toronto advisor

Regulation like being in a hurricane, says Toronto advisor

Regulation like being in a hurricane, says Toronto advisor

Birenbaum believes – if surveyed – her clients would rate these activities low on the priority scale, while keeping costs down is their top concern. This becomes challenging, for advisors, she says, if they have to invest more time and money into administrative activities.

“I know that investors out there are looking for us to all try and reduce costs and I’m always looking to try and reduce my fees to clients wherever I can,” she says. “This type of thing interferes with our ability to do that.”

Despite her frustrations, Birenbaum believes the industry is on the right track and will be in a better place once the dust settles.

“I don’t resist it because I know where it’s coming from and I’m not about to fight that tide …,” she says. “I think we will end up in a good place, but being in it is like being in the middle of a hurricane.”

Another Toronto advisor, John De Goey, with Burgeonvest Bick Securities Ltd., believes the changes are a long-time coming with the industry finally getting the recognition it deserves.

“The business of giving financial advice is in the process of becoming a profession the way law, medicine and accounting are professions, which is to say enshrined and statute, with laws being written by provincial governments to further regulate and emasculate the reputation of and regulation of the people who offer this service," he says.

"Finally. I’ve been doing this for 20-odd years and we’re finally getting around the point of recognizing that this is important."


read more > 1 2

  • Gdn 2014-02-18 3:17:22 PM
    I agree, the time I spend on all this is killing me because there is a belief that suddenly all bad people will become good by imposing more regulations?!? I'll be interested to know if anything changes for the good for the general public as a result. I, at this point, severally doubt it.
    Post a reply
  • Mike H. 2014-02-22 2:21:20 PM
    The first step in many frauds perpetrated on clients is to change the address and phone number on the books of the dealer to ones the crook controls. That's why all address and phone number changes need to be confirmed.
    Post a reply
  • Joseph Sask 2014-02-22 7:01:23 PM
    I want to go further. All the regulatory boards across Canada are getting paid to sit on those boards and develop policies, procedures and regulations to govern the Advisors. This is all being done in the name of " Good Governance ". The cost for these people to sit on the boards is being paid for by the investors, I believe. What is shocking is in an industry that is approxiamately $400 billion in value, where the average MER fee is 2.5% per year. That represends a staggering $10 billion per year fees that are being paid for by the investor, yet there is no, I repeat NO accountability or reportability of these fees to the investor.
    This alone is a crime of epic proportion. When is someone, anyone going step forward and fire every board member for this crime. Or do we all Advisors have to wait until 31-103 comes into effect in 2016.
    Post a reply