Advocis Calls for One Regulatory Body to Oversee Profession


TORONTO, Sept. 22, 2015 (GLOBE NEWSWIRE) -- In response to the consultation request from the Expert Committee to Consider Financial Advisory and Financial Planning Policy Alternatives, Advocis, The Financial Advisors Association of Canada, has proposed a model that clearly outlines the need for one regulatory body to oversee financial advisors.

Advocis recommends removing the oversight of financial advisors by the MFDA, IIROC, OSC, and FSCO, and establishing a new delegated administrative authority (DAA) that would capture advisors who operate at the retail consumer level. The DAA would directly answer to the Minister of Finance, and thereby eliminate the regulatory duplication that currently exists.

Ontario's regulatory and industry stakeholders acknowledge that all financial advisors in Ontario engage in financial planning in order to serve their clients. Therefore, financial planning in any form is a subset of the financial advice profession.

The solution proposed by Advocis will:

  • simplify basic regulatory functions such as registration, and tracking and reporting of disciplinary measures;
  • reduce levels of confusion and frustration for consumers and financial advisors;
  • lessen red tape and lower compliance costs for firms, ultimately reducing government expenditures; and
  • preserve, where appropriate, existing product development regulation (i.e., those which delineate insurance products from securities products) and increase the focus on advice provision and consumption.

"As an industry we have a responsibility to protect those who trust and depend on us. Since anyone can call themselves a financial advisor, consumers are left vulnerable. This holistic approach applies the same regulation to all those providing financial advice," says Greg Pollock, president and CEO, Advocis. "The suggestion to only regulate a specialized subset of the industry creates a gap, adds additional layers of regulation and cost, and doesn't address the issues currently under review."

To read the complete Advocis submission, visit Financial Advisory and Financial Planning Policy Alternatives Consultation.

About Advocis

Advocis, The Financial Advisors Association of Canada, is the association of choice for financial advisors and planners. With more than 11,000 members in 40 chapters across the country, Advocis is the definitive voice of the profession, advocating for professionalism and consumer protection. Advocis works with decision-makers and the public, stressing the value of financial advice and working toward an environment in which all Canadians have access to the advice they need.



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