Top News

Nov 24 2015

Cumming’s report: The final nail in the coffin for trailing commissions

Despite an ever-mounting body of evidence, the investment industry has persistently refused to acknowledge that trailing commissions harm investors. Now, that acknowledgment is no longer necessary because of the comprehensive empirical research that Douglas Cumming has completed for the Canadian Securities Administrators. Cumming, a finance professor at the Schulich School […]

Nov 13 2015

Fixed Income Reforms Long Overdue and Don’t Go Far Enough

FAIR Canada recently commented on the CSA’s proposal to enhance regulation of the fixed income market. The CSA’s proposal consists of measures to: facilitate more informed decision-making among all market participants, regardless of their size; improve market integrity; and evaluate whether access to the fixed income market is fair and equitable for […]

Oct 30 2015

FAIR Canada and Osgoode Hall’s Investor Recovery conference a success

FAIR Canada and Osgoode Hall Law School co-hosted a conference in Toronto on October 26, 2015 entitled Public and Private Enforcement: Improving Recovery for Harmed Investors. The conference’s keynote speaker, Ontario Securities Commission vice-chair Monica Kowal, focused her remarks on achieving stronger outcomes in investor protection. Throughout the day attendees […]

Oct 26 2015

Get ready for the Kijiji Stock Exchange and Uber portfolio-sharing app

Digital workaround culture epitomizes this millennial age. Disruptive technologies — once feared by consumers — are now harnessed by some to circumvent established commercial rules, sales channels and costs. At the forefront of this change are techno-savvy young adults largely shut out of the conventional economy. Lacking much disposable income […]

Oct 23 2015

Report to CSA indicates trailing commissions impact fund sales to the detriment of investors

Prof. Douglas Cumming’s report, “A Dissection of Mutual Fund Fees, Flows and Performance” (the “Report”) shows that trailing commissions do have an impact on investment in mutual funds, and it’s an impact that harms investors. He found that fund sales are less influenced by past performance when fund manufacturers pay […]

Oct 20 2015

FAIR Canada AGM held in Montreal; appoints Brad Doney to Board of Directors

FAIR Canada is pleased to announce that Bradley Doney was appointed to the Board of Directors during FAIR Canada’s annual general meeting, held on October 5, 2015 in Montreal. Following the meeting, FAIR Canada hosted a reception for members and representatives of the Quebec consumer advocacy, regulatory and investment communities. […]

Oct 15 2015

FAIR Canada supports reforms which will allow securities regulators to collect and publish information on the exempt market

FAIR Canada offered comments on proposed amendments to National Instrument 45-106 Prospectus Exemptions that would introduce a harmonized report of exempt distribution (the “Proposed Exempt Distribution Report”) and related changes to Companion Policy 45-106CP Prospectus Exemptions. FAIR Canada supports reforms to the Proposed Exempt Distribution Report that will allow securities […]

Sep 30 2015

Quebec urged to reform existing regulatory requirements to ensure better financial outcomes for consumers

FAIR Canada provided comments to the Quebec government on its consultation arising from a Report on the Application of an Act Respecting the Distribution of Financial Products and Services and the proposals set out therein, as well as comments to highlight policy reforms that would improve consumer protection and improve […]

Sep 28 2015

FAIR Canada Provides Comments to Expert Committee on Financial Advisory and Financial Planning Policy Alternatives

As more Ontarians (and Canadians) are compelled to be self-reliant in saving for retirement and are forced into the markets due to declining availability of employer-sponsored pension plans, the inadequacy of the current regulatory regime for financial planning and financial advice has rightly become a serious concern for government policy-makers and society as a whole. FAIR Canada strongly believes that what is urgently needed is a comprehensive and coordinated solution and one that keeps its focus squarely on consumers’ needs and their capabilities. There is overwhelming evidence that consumers are not adequately protected in the existing regulatory framework and reform is urgently needed. FAIR Canada believes that the following is required: a regulatory regime that oversees whether the products being sold to consumers meet their needs and are in their best interests; consistent treatment of consumers across the regulatory spectrum; an adequately funded and informed consumer voice that is part of the policymaking process; and a statutory best interest standard applicable whenever financial advice is provided to consumers.

Sep 28 2015

Advisors’ failure rate in recent “mystery shopping” tests: 37%. Imagine if doctors performed that badly

About a year and a half ago, CBC’s investigative consumer affairs show Marketplace aired a report exposing atrocious investment advice. Concealed cameras and microphones recorded advisors exaggerating the returns that could be expected from low-risk investments, deflecting discussion about a product’s risks, giving vague or mangled answers to questions about […]

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