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IAP says 2017 could be a transformative year for investor protection

par The IJ Staff | April 13 2017 11:30AM

Ontario’s Investor Advisory Panel has published its 2016 annual report, in which it highlights its work related to conflicts of interest, conflicted compensation and the need for a best interest standard for advisors.

The IAP says that during the year 2016 it focused on the state of investor protection in Ontario, producing 12 submissions and comment letters that bring the investor perspective to rule and policymaking.

The IAP underlined, for example, its submission to CSA Consultation Paper 33-404 that a best interest standard would "facilitate the shift of investment advice from a sales focused industry to a profession, where investors are well-served by individuals with the expertise and training to meet their needs and consider their interests first and foremost."

Embedded commissions

The IAP also says eliminating "conflicted compensation practices and embedded commissions" will remain a high priority for IAP this year.

"The year 2017 has the potential to be a transformative year for investor protection," said Ursula Menke, Chair of the Investor Advisory Panel. "But only if the OSC and other regulators act to introduce a best interest standard and eliminate egregious and systemic conflicted compensation practices at regulated firms."

To read the report, click here.

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