Regulatory Submission Papers

Submission to Securities Commissions | Proposed Amendments to National Instrument 81-105 Mutual Fund Sales Practices and Related Consequential Amendments

We participated in the OSC’s September 2017 roundtable discussion on alternatives to eliminating embedded commissions. Much of the industry participation that day was seemingly aimed at protecting themselves with little regard for clients. This must change. In particular, we urged the broader industry – particularly dealers, dealing representatives, and mutual fund manufacturers – to focus on how each of them would want to be treated as clients of the industry; and focus efforts on creating feasible ways of delivering what clients need and deserve.

We also support the OSC in pushing back against the Ontario Minister of Finance. The Minister’s statement opposing these proposals appear to be motivated by politics; not by investor protection objectives.

Submission to Mutual Fund Dealers Association of Canada | A Discussion on Expanded Cost Reporting

People investing in investment funds of all kinds should be receiving total cost transparency. While CRM2 was a good first step; meaningful investor-friendly total cost disclosure is long overdue. Since the broader industry has failed to create this transparency, it is up to regulators to legislate it. This transparency should be required regardless of the product being used. The remainder of this submission directly addresses the MFDA’s consultation questions.

Submission to Securities Commissions | CSA Consultation Paper 81-408 – Option of Discontinuing Embedded Commissions

The investment fund sponsors and dealers have done too little for too long to figure out a meaningful, common sense way to be transparent with their clients.  As a result, we’re generally in favour of a ban on embedded commissions on financial products.  Moreover, clients deserve to not only see total costs after-the-fact (through regular reporting) but to receive this transparency before taking the plunge to engage an advisory firm.  Our submission on Canadian Securities Administrators’ consultation paper on eliminating embedded commissions (81-408) expands on these ideas and details our feedback on regulators’ many specific questions.

Multiple Submissions to Securities Commissions | Canadian Securities Administrators Consultation Paper – 33-404

The Canadian Securities Administrators (CSA) have proposed: a) a host of rule changes; and b) that all ‘investment-licensed advisors’ should be held to an overarching Best Interest standard of care with respect to their clients.  We agree with most of the proposed rule changes.  And while we agree with applying a Best Interest standard in theory – i.e. HighView is already held to this standard – we are warning the CSA that applying this standard to the existing industry structure may not change today’s two-tiered system of investor protection in Canada.

Submission to Securities Commissions | CSA Mutual Fund Risk Classification Methodology

The CSA’s proposal for standardized risk measurement and illustration is a significant improvement over the status quo.  But we stand by our view in urging the CSA to discard opaque and academic risk measures; and embrace more intuitive risk measures that are aligned with how end investors actually view investment risk.

Submission to Mutual Fund Dealers Association of Canada | Measurement and Disclosure of Total Investor Costs

True and full cost disclosure is at the heart of putting clients’ interests first; and key to a transparent reporting regime.

Submission to Ontario’s Ministry of Finance | Consultation on the proposed regulation of Financial Planning

After many incomplete efforts at regulation financial planning activities and/or titles, this submission fully supports this long overdue initiative

Submission to the Canadian Securities Administrators (CSA) | Input on how best to measure and summarize investment fund risk

This submission provides a detailed analysis of regulators’ proposed risk measure and illustration along with more practical solutions to improve upon the status quo

Submission to the Canadian Securities Administrators (CSA) | Imposing a fiduciary duty on all financial advisors

While being supportive of the idea of putting clients’ interests above all, imposing this duty is unlikely to achieve regulators’ end goal

Submission to Morningstar Canada | New fund classification regime

At a time when Morningstar Canada proposed to create its own fund classification system – which have some regulatory impact – this submission shares thoughts to improve an already good proposal.


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