The Investment Industry Association of Canada (IIAC) submitted its comments on Oct. 19 to the Canadian Securities Administrator’s Client Focused Reforms consultation. Among its comments, IIAC requested further clarification around the description of the anticipated costs and benefits of the proposed amendments.

“Over the summer, the IIAC Client Focused Reforms Working Group, comprised of industry professionals, reviewed the CSA proposals, identified impractical rules with suggested alternatives, as well as pointed to the need for greater clarity related to the compliance process,” said Ian Russell, President and CEO, of the association. “The Working Group also outlined that more streamlined and clear rules and guidance will promote cost-effective compliance and confidence among advisors and their clients.”

In addition to clarification on costs and benefits, the IIAC also specified that it is concerned with some of the language related to the companion policy and that its wording may be interpreted as prescriptive, suggesting it has the force of law. “Without clarification, firms may incorrectly feel they must develop further policies and procedures to comply with the Policy,” says the association.

The IIAC also recommends the terms “best interest” and “putting their client’s interest first” be more clearly articulated, differentiated and defined. The association also recommends that a joint CSA/Self-Regulatory Organization Implementation Committee be struck “to efficiently escalate issues and provide a central resource for industry to receive feedback and guidance.”

To learn more, consult the IIAC’s submission here.