The Ontario Securities Commission’s (OSC) Investor Advisory Panel (IAP) reiterated its call on Wednesday for regulators to move beyond consultation to action on a variety of investor protection issues, including the adoption of a best interests standard for advisors.
The IAP has submitted its 2015 Annual Report to the OSC, which summarizes the panel’s recommendations, activities, submissions, consultations and meetings during the past year.
“Regulators are now well aware of the changes that must be made to protect investors and foster an industry that puts investors’ needs first and foremost,” says Ursula Menke, IAP chairwoman, in a statement accompanying the report’s release.
“This means introducing a best interest standard, eliminating conflicted compensation and making access to restitution and dispute resolution a reality for Ontario investors,” she adds.
The IAP saw progress on several fronts in 2015, including continued research by regulators on investor protection issues, according to the report, which notes that the OSC’s draft statement of priorities features “a welcome focus on investor protection.”
The report points out that “these are solid steps forward. However, we continue to push the OSC and other regulators to address the fundamental misalignment between the needs and interests of investors and the industry that serves them.”
Later this month the Canadian Securities Administrators (CSA) plans to release a consultation paper that will further examine “specific proposals to enhance the obligations of registrants towards their clients.”
Regulators mull better aligning the interests of clients and advisors
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