(December 20 – 11:10 ET) – Canadian securities and insurance regulators will move to protect and inform consumers in the rapidly changing marketplace for mutual funds and seg funds.
A working group of the Joint Forum of Financial Market Regulators has developed 15 recommendations for harmonizing securities and insurance regulations to keep pace with the changes. Since consumer education is an important part of consumer protection, the working group has included a buyer equals guide — containing objective and non-promotional information on both products — to help consumers make more informed purchasing decisions, and a mechanism to speed up complaint resolution between buyers and sellers.
The working group will consult with consumer and industry representatives. The work will include adapting the best practices in the various Canadian regulatory regimes for use in the others. Consumer protection is the focus of the regulators equals priorities.
“Integration of the financial services industry will be a continuing trend,” said Dina Palozzi, Chair of the Joint Forum. “Our priority is to ensure that the regulation of both mutual funds and seg funds strengthens protection for consumers and continues to be
responsive to marketplace developments.”
The Joint Forum has asked the regulatory sub-committee to complete this third phase of its mandate by the Spring 2000 meeting of the Joint Forum. It is contemplated that the recommendations contained in this Report would be implemented in phases over the next two years. For the complete set of recommendations please see the website listed at the end of this story.
-IE Staff