Paul C. Bourque, president and CEO of The Investment Funds Institute of Canada (IFIC), called on regulators to protect investor choice and access to advice for middle-class Canadians, in a speech delivered to the Economic Club of Canada on June 15.

"We should always be looking for ways to improve investor protection, and to foster fair, efficient and competitive capital markets," Bourque said. "What we should avoid is introducing measures that add to the regulatory burden without providing proportionate improvements in investor outcomes."

Potential ban on embedded commissions

Bourque’s remarks relate to the ongoing discussions among regulators on whether to introduce a best interest standard and whether to ban embedded commissions.

"The potential impact of recent regulatory proposals will permanently alter the landscape for retirement savings in Canada – and not necessarily for the better," Bourque said.

He warned against the negative impacts of an embedded commissions ban. "Banning embedded commissions will have long-term negative impacts on the ability of Canadians to plan and save, leaving them with substantially lower levels of assets to fund their retirements."