Advocis, The Financial Advisors Association of Canada, has submitted its recommendations to the Canadian Securities Transition Office (CSTO), which is in the process of drafting the legislation around a national securities regulator.

“Before they finalize anything, the CSTO needs to understand where we stand on the fundamental issues that will ultimately shape what the national securities regulator looks like,” says Greg Pollock, Advocis’ president and CEO.

“Our submission has several recommendations that include a commitment to principles-based regulation; and a review of the self-regulatory organizations’ that have oversight of financial advisors.”

There is overwhelming evidence that principles-based regulation works. This type of regulation is in the form of broad-based standards rather than detailed rules and makes the market players responsible for the implementation of suitable practices.

Advocis also suggests that there should be no interference with the regulation of the distribution of segregated funds. There is appropriate oversight under the provincial insurance regulatory framework.

To ensure the voices of all securities registrants are heard, Advocis also strongly recommends the creation of a permanent advisor panel to ensure appropriate policy development.

IE