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 […]
Independent Financial Brokers of Canada (IFB) is pleased to announce the forging of a new partnership with the Conseil des professionnels en services financiers (the Conseil) that will initiate a coordinated effort to provide training for financial services professionals. The new alliance will give IFB a chance to expand its reach as a professional association to more advisors in the province of Quebec. IFB’s existing, cross-Canada membership base and experience offering continuing education to advisors will bolster the Conseil’s ability to offer high quality training services to Quebec’s English-speaking markets. “Our organization has been fighting for thirty years for the rights of independent financial professionals in Canada, but we have not yet achieved the same stature in Quebec that we […]
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 […]
BC requires a statutory review of the Financial Institutions Act (FIA) & Credit Union Incorporation Act (CUIA) every 10 years. To prepare for this review, the government issued an initial consultation paper to gather input from stakeholders on whether certain proposed changes would improve the regulatory framework. IFB submitted our comments, concentrating on the sections that may affect our members in BC. In summary, we supported a national database to share regulatory information, a mandatory licensing structure for anyone selling insurance products to consumers – including insurance sold incidental to the purchase of another product, removal of the current 25% cap on rebating, and the need for insurance transacted by consumers online to have access to a licensed advisor at […]
The federal Department of Finance issued an initial consultation paper to gather input on whether Canadians should be able to supplement their savings, by making additional voluntary contributions to the CPP. The consultation paper had few details of how such a system would work. IFB responded to the consultation, expressing our view that while such a plan may be attractive to some individuals, it may be expensive to operate and administer, as these additional contributions would have to be tracked separately from required employment-related CPP contributions. To address the government’s concern about under-saving by some individuals, a better solution would be to improve some of the tax-assisted retirement savings programs already in place. To read our entire response click here