Independent Financial Brokers of Canada (IFB) is pleased to contribute our comments to Phase 3 of this consultative process, which focuses on young Canadians and adult. We agree that early exposure to financial learning is an integral step for children to develop sound long-term attitudes toward spending and saving. Parents, the educational system, and organizations that provide services to children and youth (such as Junior Achievement, 4H, Boy Scouts, Girl Guides, etc.) are at the forefront of influencing such behavior in children and young people. We note that a number of interesting and engaging ideas were presented in November at the Financial Literacy conference in Vancouver from various organizations, including those representing students and youth groups. Links to these on […]
Independent Financial Brokers of Canada (IFB) is pleased to offer our comments on Phase 2: Priority Groups. We support the Financial Consumer Agency of Canada’s goal to establish a national financial literacy database which will link, and build upon, existing materials and resources, and connect potential users with this information. Consumers will be able to source resources within their own community, and local program providers can use it to craft programs specific to the needs of their target groups. IFB also supports expanding the development of financial tools and materials that are explained in plain language. This is an important step toward helping consumers understand the everyday financial services and products they use most often, such as service fees and interest […]
Today Independent Financial Brokers of Canada provided comments, on behalf of its approximately 4,000 financial advisor members, on the proposed Cooperative Capital Markets Regulatory System and its accompanying draft legislation: the Provincial Capital Markets Act (PCMA) and Capital Markets Stability Act (CMSA). Click here to read the full position paper.
November is Financial Literacy Month in Canada, and to encourage investors to better understand investing in mutual funds, the Canadian Securities Administrators (CSA) has released a free, interactive version of a sample Fund Facts document. Taking this self-guided tour will help investors learn how to identify a fund’s principal investment, past performance, risk rating and cost. Fund Facts are written in plain language and are intended to make it easier for investors to understand the key features of the fund and to compare various funds. Under current rules, investors must receive the Fund Fact for their mutual fund, within 2 days of a purchase, although they are readily available to the public before then on each fund company’s website or through your advisor. To […]
CLHIA releases compliance guidelines as part of its response to recommendations from regulators Insurance advisors could begin seeing more compliance audits and a higher level of oversight of their day-to-day sales activities by their managing general agencies (MGAs) as the industry adopts a set of standardized compliance practices for the MGA distribution channel. The Canadian Life and Health Insurance Association Inc. (CLHIA) recently released a reference document entitled MGA Compliance: A Risk-based Approach for Compliance Programs in the MGA Channel. This document is intended to serve as a guide for MGAs in developing compliance policies regarding advisor screening and monitoring, as well as other compliance responsibilities. Continue reading this article at Investment Executive
Press Release: 16 October 2014 (Wilton, Connecticut) Today, the board of directors of Wilton Re Ltd (“Wilton Re”) announced the execution of definitive agreements to acquire the majority of the Aegon N.V. operations in Canada for C$600 million, consisting of Transamerica Life Canada, Canadian Premier Life, Legacy General Insurance Company, Aegon Capital Management, Aegon Fund Management, CRI Canada and Selient, Inc. (“Transamerica Canada Business”). Wilton Re will fund the transaction with additional equity capital provided by its parent, Canada Pension Plan Investment Board. Chris Stroup, Chairman and CEO of Wilton Re, said, “We are delighted to work on this important transaction with Aegon. Wilton Re views the acquisition of the Transamerica Canada businesses as well-aligned with our strategy to provide […]
The Financial Services Commission of Ontario (FSCO) released its findings from a study it conducted with 1300 randomly selected life insurance agents licensed in Ontario. The study was primarily an information gathering exercise where selected agents were required to complete a questionnaire on the practices they employ to determine if a product or recommendation is suitable for clients. While the results were positive in many respects, some shortcomings in sales practices were noted. IFB has communicated with members reminding them of the importance of compliance with regulatory requirements, and in particular, providing clients with written conflict of interest disclosure. IFB members will find more information in the Member section of the IFB website: www.ifbc.ca. Next steps: In its September e-newsletter, […]
In July 2014, the MFDA published a “Discussion Paper on the use of Investor Questionnaires” to help with the KYC process, including a sample investor questionnaire to guide and document this discussion with clients. Use of the questionnaire is not mandatory and your dealer may have adopted a different or similar questionnaire. The MFDA notes: The know-your-client (“KYC”) process is one of the most fundamental obligations under securities legislation and one of the most important elements of investor protection. However, the process can be challenging for both clients and Approved Persons. Investors may not always understand the industry terminology used on KYC forms and research reveals that many investors do not understand the relationship between risk and return. Approved Persons […]