The Investment Dealers Association’s president and CEO, Joe Oliver, has written to the B.C. Securities Commission, outlining the IDA’s objections to some of the elements of the proposed B.C. model securities reforms.

In the letter dated August 1, the IDA encourages B.C. to bestow legislative immunity to SRO staff. “It is untenable that the IDA, its staff, and/or the industry volunteers that serve on its Board and Committees, be subject to bearing the cost and burden of this kind of legal action in circumstances where they are performing a mandate in the public interest, as expected by the commissions,” writes Oliver.

The IDA also says that it should be given jurisdiction over individual brokerage employees, not just the firms that make up its membership. “For firm-only registration to work well for IDA members, the definition needs to be changed to give the IDA jurisdiction over the individual, through the statute,” Oliver writes

The IDA notes that it initially supported the concept of firm-only registration. But, upon reflection, and the realization that it will not be adopted in other provinces, it has changed its mind. “Our analysis leads us to conclude that firm-only registration may be an excellent concept only if it can be implemented across the country,” Oliver writes.

As for the BCSC’s proposed code of conduct approach, the IDA questions the need for a commission code that it says “essentially replicates” the IDA’s existing code. In the letter, Oliver points out “We run the risk of confusing sales representatives by introducing another code of conduct. Creating a new code rather than adopting the CPH code seems counterproductive.”

The IDA also says that it has a fundamental concern with the idea that a small group of people or even a single person could form their own firm and be direct registrants of the commission. “Indeed, we fail to see the need for the initiative and instead see considerable risk to investors,” Oliver warns.

It also expresses concern about the opportunity for IDA members’ directors to suffer liability. It proposes that rather than a stand-alone Continuous Market Access System in B.C., the Integrated Disclosure System model could be adopted under the proposed Uniform Securities Legislation, “which would benefit the broader market”.

The IDA discourages the notion of allowing competition from foreign dealers without reciprocity for Canadian firms. “The Canadian industry supports competition, but competition must be on a level playing field. We believe the B.C. Model skews a competitive advantage to the foreign market participant and reiterate our position that the need for reciprocity is key before opening our market to foreign entrants.”