Earlier this week, the Mutual Fund Dealers Association of Canada published a brochure meant to help consumers understand the advantages of utilizing an MFDA Member to assist them in their financial planning endeavours. “The MFDA and its Members are responsible for a significant portion of the Canadian wealth management landscape and primarily service mass market retail clients who represent over 80% of Canadian households. The Benefits of Working with an MFDA Member brochure is intended to promote the value and benefits to investors of the regulatory oversight exercised by the MFDA over its Members,” said MFDA President and CEO Mark Gordon. The brochure outlines benefits such as the protections provided by MFDA Rules, registration of Members and Approved Persons, Member complaint […]
A review of Ontario’s existing insurance regulation regime has led to the recommendation of a larger regulator that has more powers. The proposals come from an expert committee tasked with reviewing the directives of the Financial Services Commission of Ontario (FSCO), the Deposit Insurance Corporation of Ontario (DICO), and the Financial Services Tribunal. The committee proposed the stronger enforcement of rules and regulations applying to insurance agents, increased obligations in consumer protection, and new rules that reflect those that apply to the securities side of the financial advisory industry. In addition, the committee suggested an overhaul of Ontario’s existing regulatory framework, including merging FSCO and DICO into one larger regulatory body called the Financial Services Regulatory Authority (FSRA). The proposed […]
The Registered Deposit Brokers Association (RDBA) has noticed in recent weeks there has been media attention and other communication regarding a suite of compliance products offered through Advocis. In these articles, they have been positioned as “the sole distributor of the Deposit Broker Anti-Money Laundering E-Learning course (AML) and the Deposit Broker Annual Compliance Attestation (ACA).” The Board of the RDBA wishes to make it clear that Advocis is the distributor of products, developed by a third party, for-profit enterprise, that are essentially competing with the solutions offered for many years by the RDBA to its members. The RDBA does not endorse these products offered by Advocis, and any inference or interpretation that these products are the only solutions for […]
The Mutual Fund Dealers Association of Canada recently issued a bulletin concerning all Approved Persons about the use of documents that have been pre-signed by clients, and the falsifying of other client signatures. MFDA Regional Council Hearing Panels have consistently ruled that it is not permissible for Approved Persons to falsify client signatures, and that MFDA Members and Approved Persons may only use forms that have been executed properly by clients after information on the form has been completed properly. To read the full bulletin from the MFDA, and see examples of examples of falsification, click here.
The results of a “mystery shop” exercise for investment advice were made public yesterday. The Ontario Securities Commission (OSC), Investment Industry Regulatory Organization of Canada (IIROC), and Mutual Fund Dealers Association of Canada (MFDA) released a joint report on the exercise, which was carried out by a market research firm. Researchers posed as prospective clients and recorded their experiences when conversing with financial advisors. The interactions took place in a number of advisory firms across Ontario between July and November 2014. The research is the first of its kind undertaken by Canadian securities regulators. Among the key findings, the report shows that it is often difficult for investors to decide whether or not they have received appropriate guidance, and that […]
In a news conference held today, Ontario Premier Kathleen Wynne unveiled more details on the Ontario Registered Pension Plan (ORPP), and which pension plans will be considered “comparable”, making them exempt from participation. The ORPP will be phased in over six years to allow businesses to adapt or bring their current pension arrangements in line with the ORPP. Employers without a registered pension plan will be phased in beginning in 2017. Large employers with over 500 employees will be first, employers with 50-500 employees will begin participating in 2018, and in 2019, small employers with less than 50 employees will be required to participate. Self employed people (subject to changes being made to the federal Income Tax Act) would begin […]
Insurance regulators are taking a closer look at the sales of mortgage insurance, creditor’s insurance and other “incidental” insurance products. The new examination efforts come amid concerns that the individuals selling these policies aren’t qualified, and in many cases, aren’t licensed to sell insurance at all. Insurance agents have welcomed the regulatory changes, as they will offer better protection for consumers while also leveling the playing field in the distribution of insurance products. IFB also welcomes the decision of regulators to address this issue. We feel it’s unfair that individuals who are not subject to the same requirements and oversight of licensed representatives can sell insurance products. Read more about the issue and our stance in this article from Investment […]
Expect the Unexpected: Older Canadians Share Their Financial Lessons OSC Releases Key Findings on Investor Protection for Seniors TORONTO – Today the Ontario Securities Commission released The Financial Life Stages of Older Canadians, a targeted research study on seniors’ financial needs and challenges. The research found that almost six out of 10 older Canadians experienced a major life event that challenged their prior financial plans (such as a loss of investments or income) and that fraud impacts approximately 60 out of every 1,000 older Canadians. Based on online survey interviews with 1532 Canadians aged 50 and over, this report delivers on a commitment in the OSC’s Statement of Priorities to be more responsive to senior investors. The report also builds on previous […]