Advocis responds to Cumming's report on mutual fund fees

TORONTO, Oct. 23, 2015 (GLOBE NEWSWIRE) -- Yesterday, The Canadian Securities Administrators (CSA) released independent research into mutual fund fees, A Dissection of Mutual Fund Fees, Flows and Performance. "Advocis welcomes new insights into how the industry can better protect consumers; however, we maintain that any decisions in regard to product sales or offerings in the marketplace must ensure that advice is broadened, not restricted," says Greg Pollock, president and CEO of Advocis, The Financial Advisors Association of Canada.

Prepared by Professor Douglas Cumming, Ontario Research Chair at the Schulich School of Business at York University, the research was commissioned by the CSA to assess whether sales and trailing commissions influence mutual fund sales.

"Upon preliminary review, it appears that the report does not consider the monetary value of the financial advice provided to clients," says Pollock. "Our anecdotal evidence tells us that Canadians are generally satisfied with the current commission system for mutual funds. There's a cost associated with advice regardless of how it is paid. Not every Canadian can afford to pay an upfront fee for service, which can be several hundred dollars an hour."

Advocis' Professions Model addresses the CSA's concern for protecting the best interests of consumers. "We have put forward an elegant solution to the government in which we call for one professional body to oversee the profession—a move that will raise standards for advisors. All Canadians deserve to have access to affordable and trustworthy professional financial advice," says Pollock.

For media inquiries or to speak with Greg Pollock, president and CEO, Advocis, please contact: Darlene Francis, Director, Corporate Communications and Marketing, at 416-342-9896 / 1-800-563-5822, ext. 9896 or email dfrancis@advocis.ca

About Advocis

Advocis, The Financial Advisors Association of Canada, is the association of choice for financial advisors and planners. With more than 11,000 members in 40 chapters across the country, Advocis is the definitive voice of the profession, advocating for professionalism and consumer protection. Advocis works with decision-makers and the public, stressing the value of financial advice and working toward an environment in which all Canadians have access to the advice they need. www.advocis.ca

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