Top News

Jul 24 2014

A Profession or Not a Profession?

A recent article by Knut Rostad, president and founder of the U.S.-based The Institute for the Fiduciary Standard, notes that “[e]ssential criteria for the principles and practices of a profession of fiduciary advice can be divided between the “hard” requisites such as education, knowledge and experience, and the “soft,” including communication, character, honesty and transparency…

Jul 23 2014

Don’t Canadians Deserve the Protections Provided Under MiFID II?

There has been a considerable amount of debate in Canada regarding the payment of third party commissions and conflicts of interest that colour the investment advice received by retail investors. While FAIR Canada is pleased that regulators are committed to studying the effects of embedded, third-party commissions, we are disappointed that Canadian investors are a long way from benefiting from such research. Other jurisdictions, including Europe, have introduced regulatory changes to prohibit portfolio managers and firms…

Jul 22 2014

Advisor Proficiency to be Reviewed

IIROC has issued a consultation paper seeking input on its advisor proficiency assurance model. In FAIR Canada’s view, advisor proficiency is an important element of a best interest standard, and is essential to ensuring that the investing public receives quality financial advice. FAIR Canada encourages readers to submit comments on the model…

Jul 21 2014

How to Protect Clients with Signs of Cognitive Impairment

We’re living longer. That’s mostly something to celebrate. But added longevity comes with a cruel cost: many of us will end up battling Alzheimer’s disease or some other form of dementia. And none of us will win that battle. The risk of developing dementia doubles every five years after age 60, with 20% of seniors over 80 being afflicted. Unfortunately that’s not the full picture. Another 30% suffer from what’s called cognitive impairment not dementia (CIND). In other words, fully half of people aged 80 or older have lost the capacity to make significant financial decisions. Their decline, in most cases, will have been incremental over many years, so a substantial portion were already compromised in their 70s and some even in their 60s…

Jul 21 2014

FAIR Canada Suggestions on Senior Financial Literacy Strategy

FAIR Canada has provided a comment letter to Canada’s new Financial Literacy Leader in response to a public consultation on the National Strategy for Financial Literacy relating to seniors. In particular, FAIR Canada stressed the importance of recognizing the context within which seniors (and all Canadians) make financial decisions, including the trust and reliance placed on those who provide financial advice. The letter notes that some industries’ business models seem to perpetuate a system of many firms with ineffective competition on price and quality to consumers…

Jun 27 2014

OSC: Commit to Action on Investor Protection Priorities

At the beginning of June, FAIR Canada provided comments on the Ontario Securities Commission’s (OSC) draft statement of priorities for 2014-2015. While FAIR Canada recognized the OSC for its commitment to investor protection to date, our letter expresses concern that the draft priorities focus more on capital formation and regulatory burden than investor protection. FAIR Canada found…

Jun 27 2014

Eliminate OM Exemption

FAIR Canada submitted a letter to several members of the Canadian Securities Administrators regarding their offering memorandum (OM) exemption on June 18, 2014. The letter expresses serious concern regarding the compliance record relating to the OM exemption. It also notes the absence of evidence that the OM exemption has reduced the cost or increased the amount of capital for start-ups or small and medium enterprises…

Jun 27 2014

Say No to Equity Crowdfunding

On June 18, 2014, FAIR Canada submitted a comment letter to various members of the Canadian Securities Administrators (CSA) opposing the introduction of a crowdfunding exemption and a start-up exemption. In FAIR Canada’s view, finite regulatory resources should be used to focus on initiatives that provide for strong investor protection as these are the initiatives that support true capital formation and fair and efficient markets…

Jun 27 2014

Proposed OSC Exemptions Pose Harm to Investors

FAIR Canada provided comments to the Ontario Securities Commission (OSC), in response to its request for comments on four proposed prospectus exemptions. In FAIR Canada’s view, finite regulatory resources should be used to focus on initiatives that provide for strong investor protection as these are the initiatives that support true capital formation and fair and efficient markets…

Jun 23 2014

FAIR Canada Comments on Exempt Market Proposals By Various Regulators

FAIR Canada has submitted four comment letters on the exempt market: 1) to Ontario Securities Commission on its four proposed prospectus exemptions: Equity Crowdfunding Exemption, proposed offering memorandum (“OM”) Exemption, Family, Friends and Business Associates (“FFBA”) Exemption and a Proposed Existing Security Holder Exemption; 2) to various CSA jurisdictions regarding proposed amendments to the OM Exemption and Exempt Distribution Reports;…

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