The Canadian Securities Administrators (CSA) has extended the comment period for its consultation paper on the introduction of a best-interest standard as well as other reforms until Sept. 30, representing an additional five weeks from the previous deadline of Aug. 26.
The document — Consultation Paper 33-404: Proposals to Enhance the Obligations of Advisers, Dealers, and Representatives Towards their Clients — was published on April 28.
"We have received feedback from several stakeholders that it would be beneficial for stakeholders to have additional time to review the Consultation Paper and prepare comments," says the CSA in a statement. "The CSA is committed to having a productive consultation process and receiving specific input on the proposals and alternatives.
The consultation paper seeks comment on the possible adoption of a best-interest standard. It also proposes changes to existing regulations governing the relationship between advisors, dealers, and representatives in terms of conflicts of interest, suitability, know your client, proficiency, and business titles.
"We are of the view that the current Canadian registrant regulatory framework requires enhancements to address the issues we have identified in the client/registrant relationship," says the CSA in its consultation paper, "including to better align the interest of registrants with the interests of clients, to improve outcomes for clients, and to clarify the nature of the client-registrant relationship for clients.
The CSA also plans to hold roundtables with market participants this autumn to discuss issues raised in comment letters.
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