TORONTO, Oct. 19, 2018 (GLOBE NEWSWIRE) -- The Investment Funds Institute of Canada (IFIC) today filed its submission commenting on the Canadian Securities Administrators’ (CSA) proposed Client Focused Reforms.
“The investment fund industry is supportive of many of the Client Focused Reforms and shares the CSA’s commitment to better aligning the interests of clients and registrants, improving outcomes for clients, and enhancing investor protection,” said Paul Bourque, President and CEO, IFIC. “IFIC’s submission requests clarification of some proposals and makes recommendations to support a practical and effective implementation of the reforms.”
The submission outlines three key concerns with the Proposals:
- Aspects of the Client Focused Reforms could have the unintended consequence of reducing investor choice in products and services. IFIC believes that preserving investors’ access to financial advice and products should be the goal of any regulatory intervention.
- The Client Focused Reforms place a primary focus on cost when making an investment recommendation. IFIC notes that other factors are equally important in the suitability determination. It is important that regulation recognizes the value of advice that registrants provide to their clients.
- IFIC seeks a workable approach to addressing conflicts of interest in the best interests of clients that acknowledges that disclosure can be an effective mitigant in some circumstances.
IFIC also provides detailed comment and recommendations related to specific aspects of the proposals. It also requested a transition timeline of three years after the adoption of the final rule.
“The scope of this consultation, the willingness of the CSA to consider stakeholder input, and the meaningful response to this input all serve to confirm the value of this process,” added Mr. Bourque.
To review the IFIC submission, please visit IFIC.ca.
About IFIC
The Investment Funds Institute of Canada is the voice of Canada’s investment funds industry. IFIC brings together 150 organizations, including fund managers, distributors and industry service organizations, to foster a strong, stable investment sector where investors can realize their financial goals. By connecting Canada’s savers to Canada’s economy, our industry contributes significantly to Canadian economic growth and job creation. To learn more about IFIC, please visit IFIC.ca.
For more information please contact:
Lisa Hall
Senior Manager, Communications and Public Affairs
lhall@ific.ca
416-309-2317