The Investment Funds Institute of Canada is urging the Canadian Radio-television and Telecommunications Commission to exclude financial advisors and insurance brokers from telemarketing rules when it comes to communications with existing clients.

In a letter on Wednesday to Robert Morin, secretary general of the CRTC, IFIC reiterates its support for the current application of the Unsolicited Telecommunications Rules to financial and investment services offered to existing clients.

In early March, the CRTC issued a call for comments on the rules, to gauge whether telecommunications by advisors, insurance agents or brokers should be considered telemarketing.

In a previous bulletin, the commission concluded that telecommunications by an investment or financial advisor to an existing client regarding financial products or services do not constitute telemarketing.

“IFIC agrees with the CRTC that telecommunications by investment or financial advisors to existing clients should not constitute telemarketing under their Rules,” said Joanne De Laurentiis, president and CEO of IFIC.

IFIC points out that advisors have a responsibility to maintain contact with clients on a regular basis.

In a separate CRTC bulletin, however, the commission concluded that telecommunications by insurance agents or brokers — even to existing clients — is considered telemarketing.

IFIC argues that insurance agents and brokers should be exempt.

“Many financial advisors are dually licensed to sell both securities and insurance products,” De Laurentiis said. “It would therefore be fair and equitable if communications to existing clients by their insurance agents or brokers were also excluded from telemarketing under the Rules.”

There is no reason for communications to existing clients to be treated differently based on the product, IFIC argues in the letter. It adds that consumers view insurance planning as an integral part of financial planning, and so both insurance products and investment products should be treated equally.

IE