CCIR-CISRO proposals aim to align incentive structures with fairness principles
Editorial: Closing the gap between insurance and securities rules removes a tangible risk for clients
CCIR, CISRO consultation will also consider outright ban on upfront commissions
At a joint meeting, regulators focused on harmonizing total cost reporting for mutual funds and seg funds
Document outlines key principles that regulators expect insurers and intermediaries to engrain into their daily practices
Proposal aims to “foster discussions between regulators, insurers and intermediaries on market conduct”
New disclosure for seg funds to be aligned with mutual funds’ rules?
The proposals would bring seg fund disclosure more closely in line with the information clients receive about mutual funds, but with some key differences
The CCIR will also look at issues such as risk classification methodology, oversight of sales, needs-based selling practices, updating of client records and know-your-product due diligence requirements
The association’s response to the CCIR’s strategic plan recommends that regulators implement a mandatory rule for advisors to conduct a needs analysis for all clients