The Independent Financial Brokers of Canada is calling for more protection for independent reps in its response to the the Ontario Minister of Finance’s Five Year Review Committee. The committee was appointed to review Ontario’s securities laws and make recommendations.

The trade group recommends that the Ontario Securities Act be amended to provide for protection of the civil liberties of those the commission accuses of transgressions, as well as prospective witnesses. It says that the act should be amended before new enforcement powers are given to the OSC.

The IFBC also calls on the committee to recognize the independent contractor relationship as a legitimate business organization in the securities world. It opposes the committee’s proposal to give the commission “basket” rulemaking authority, and the proposed shortening of comment periods, and it seeks more industry input into commission cost-benefit analysis of proposed rules.

Also, the IFBC suggests that there be provision made for an “Ombudsman” who would have the power to provide redress to a broker from unscrupulous and exploitative behaviour by dealers.

The IFBC says that it agrees that there is a potential conflict of interest between a self-regulating organization’s role as a trade association and its responsibilities as a SRO and suggests that before any new SRO be approved, that it divest itself of its role as a trade association. It also seeks greater board representation for independent mutual fund brokers in the Mutual Fund Dealers’ Association.

The IFBC says is not supportive of the OSC’s proposals to introduce a requirement for all publicly offered mutual funds to establish independent governance bodies. “We believe that the potential expense of such an initiative to the mutual fund customer far exceeds the potential benefit to the customer.”