The Ontario Securities Commission (OSC) is planning a series of roundtables to examine the idea of imposing a fiduciary duty on financial advisors.
The Canadian Securities Administrators (CSA) announced on Thursday that the OSC will host a pair of roundtables in the summer to “further explore and discuss the issues identified” in the CSA’s consultation paper on a possible fiduciary duty, which was published late last year.
Fiduciary duty debate: Toward a new standard?
The meetings will take place at the OSC’s offices in Toronto, and are slated for June 18 and 25, from 9 am to 12 pm. The first session is to be geared toward investors and investor advocacy groups, while the second session is targeted at advisors, dealers and industry organizations. A final agenda for these meetings will be provided closer to the dates, the CSA says, and it invites those interested in participating to contact the commission by email at: bestinterestconsultations@osc.gov.on.ca by May 13.
A third session is also being planned that will bring together both sides of the debate. That meeting is expected to take place in July; a date has not been set. “This session will focus the dialogue, building on the previous roundtables, with a panel discussion designed to reflect the diversity of views on this issue,” it says.
The consultation period for the CSA paper ended in February. In general, investors and investor advocates support the imposition of a fiduciary duty on advisors, noting that most investors already believe that advisors are compelled to act in their best interest; and arguing that reality should reflect this belief. Whereas, much of the industry opposes the idea, warning that requiring higher standards of care will be costly, and could reduce access to advice for smaller investors.
Fiduciary Duty: Difference of opinion
Additionally, the CSA says that other jurisdictions may host their own roundtables too. So far, none have been announced.