Ontario’s main regulator will host a public hearing on the long-running debate over a possible regulatory ban on embedded commissions
Paul Bourque advocated in a speech that investors should be given a choice in terms of how fees are paid
Both groups are in agreement that eliminating embedded commissions would have serious repercussions for dealers and their advisors
The organization recommends a variety of measures, including capping trailer fees, in response to the CSA’s consultation paper
The firm’s submission to the CSA’s consultation says embedded commissions create a conflict of interest
Although some countries have banned embedded commissions or adopted a best interest standard, most have just sought to enhance disclosure
If advisors charge investors directly, 24% of survey respondents say they would be less likely to use an advisor
Regulators must take their role of ensuring an efficient and competitive marketplace more seriously, according to the head of the IFB
Andrew Kriegler also pointed out during a discussion that the words “best interest” are already an integral component of IIROC’s rules
New MFDA report also finds that a switch to direct-pay arrangements will “have a greater impact on those smaller advisors who are more reliant on DSCs”