ILBC wants to put reps at the centre of regulating its industry

In a letter to Doug Hyndman,
chair of the Canadian Securities
Administrators, the ILBC
suggested “the independent sales
person be personally licensed to
a standard sufficient for him to
be his own compliance officer.”

The ILBC says that reps would
retain their books and would
negotiate contracts for office
services with firms, maintaining
the administrative capacity of
firms, with no regulatory
responsibility.

It seems the ILBC wants the
CSA to reverse its focus on
dealer-centered compliance
that has been the regulatory
model in the securities business.
The ILBC sees itself as having
a closer resemblance to the
insurance business the traditional
securities business.

The ILBC is concerned that
current regulatory proposals will
permit fund dealers to “hijack our
insurance sales too.”

“We would not be surprised to
see a few arrogant dealers
propose to confiscate our
businesses and independence.
To see this come from government
is disappointing,” the letter
states.