An investor advocate group is urging the Ontario government to improve disclosure in the investment industry, and impose a fiduciary duty on financial advisors. It is also calling for an expanded Canada Pension Plan.

In a submission to Ontario’s Ministry of Finance ahead of an upcoming meeting of finance ministers to discuss the retirement income system, The Canadian Foundation for Advancement of Investor Rights is urging the adoption of greater investor protection measures for retail investors.

FAIR Canada is calling for: increased transparency of investment fees and returns, particularly for mutual funds; a mandatory duty for financial advisors to act in the best interests of their clients; more resources to help investors make informed financial decisions, and tougher consequences for financial firms that supply misleading information.

It also recommends expanding the CPP, allowing private investments to be managed by the CPP, on a voluntary basis but with automatic enrollment.

“As the mechanisms for retirement planning become increasingly more complex, the need for greater transparency for retail investors has also grown,” said Ilana Singer, deputy director, FAIR Canada. “Increased transparency in financial reporting and formally aligning the interests of financial advisers and their clients will go a long way to strengthening Ontario’s retirement system.”

IE