IFIC rebrands, expands mandate beyond funds industry

The name change, which includes “investment management” instead of “investment funds” wasn’t to “remove ourselves from mutual funds or ETFs,” Mitchell said. “We’re saying there are other solutions that complement those mutual funds and ETFs,” such as separately managed accounts, unified managed accounts and private investments. “Many of our wealth management dealers … have those things on their shelves, and they want to hear from us [about] how we can develop things together to be more collaborative around their entire system and platform.”

As IFIC members have evolved, they asked if the organization could “do more on their behalf and leverage … the foundation, history and legacy of IFIC,” Mitchell said.

IFIC began in 1976 as a rebranding of the Canadian Mutual Funds Association, which formed in 1962. Judy Goldring, president and head of global distribution with AGF Investments, will fulfil a two-year term as the association’s board chair this year. Her father, C. Warren Goldring — a founding father of the Canadian mutual fund industry — was board chair of the Canadian Mutual Funds Association 50 years ago, from 1974 to 1976. Reflecting on that history, Mitchell described the association’s latest transformation as “a milestone.”

Mitchell, who has helmed IFIC for the past two years, said the organization has a reputation for excellence in governance and effective meeting administration. “That foundation is very easy to then leverage up into more committee work, more working group work, more advocacy, more market intelligence [and] more research — all driven by our members,” he said.

With the rebranding, Mitchell envisions a more proactive association that leverages collaboration among its diverse members, regulators and other stakeholders. According to SIMA’s website, the association has 196 members (when corporate affiliates are each counted separately). In an email, SIMA said it gained “a handful of new members” with the rebranding.

“We’ve got a huge opportunity to be more successful in thought leadership,” Mitchell said, whether that means finding solutions to regulatory concerns or identifying actionable steps to address members’ challenges. Firms across the country are “under a lot of pressure” to meet their goals while controlling costs and adapting to evolving regulation, he noted.

IFIC’s board approved SIMA’s expanded mandate last fall. The leadership team now includes Todd Evans, a past managing director of the Investment Industry Association of Canada (IIAC), as vice-president of capital markets, and Daniela Follegot, formerly managing counsel and director with RBC Wealth Management, as vice-president of asset and wealth management. Other new appointments this year include Edward Kay, who has a background in compliance and anti–money laundering, as director of capital markets. The appointment of an economist will be announced this week, Mitchell said.

Ahead of the rebranding announcement, IFIC’s educational arm, the IFSE Institute, said it would begin winding down at the end of March and cease operations on June 30. IFIC created the IFSE in 2007 to support mutual fund licensing and advisor education, and the Canadian Securities Institute will now be the only course provider for mutual fund licensing.

In an email, a spokesperson for the Canadian Securities Administrators said the regulators were made aware of IFIC’s decision to wind down the IFSE. “We are evaluating the potential impacts to the market and investors and will act accordingly,” the spokesperson said.

SIMA will maintain its core business in policy advocacy, Mitchell said; plus, “there are some things we can be more thoughtful on as far as practice and thought leadership.”

An example is operations. “We’re still sending cheques in this industry,” Mitchell said. “Transfers are not going fast enough.” He wants the association to leverage its industry knowledge and governance to drive such issues forward.

On the research front, one of SIMA’s projects this year will be studying the role of private savings versus pensions in Canadians’ retirements. “How can we supplement [pension income] for a better experience for all retirees, not just high-net-worth [and] mass affluent retirees?” Mitchell said.

SIMA will also continue to assess the industry’s role in financial literacy, which the organization found is fragmented in high schools across Canada. Solving financial literacy is “an obligation” we have as an economy, Mitchell said, noting the rise of gambling websites and apps alongside insufficient understanding of financial concepts such as registered accounts and credit card interest.

Serving more Canadians is also on Mitchell’s mind. “The wealth [in Canada] is obviously top heavy, like any other developed capitalist market,” he said. “How do we make sure everyone can put away every possible dollar while still budgeting for their family?”

Mitchell also wants to see young people join the industry — as advisors and also in roles within areas such as operations, compliance and portfolio management. “We’re going to have some initiatives later in the year,” Mitchell said, with a focus on high school grads. “How do we help the young kid who wants to come out of high school and get into this business somehow but can’t afford to go to university?”

That’s the kind of advocacy that provides value to SIMA’s members, Canadians and the economy, he said. It’s also personally meaningful to him. “I definitely want to kick that off and get it started,” Mitchell said.