Financial services industry hubris has never been more glaring than it is right now — yet the industry continues to resist simple efforts to put clients first.

If there’s any lesson we can take from the wreckage on Wall Street, it’s the central importance of trust in financial markets. Without it, the best and brightest can soon be reduced to rubble. That’s why firms cultivate an image of credibility. Unfortunately, they then act in ways that completely undermine that facade. The latest example in Canada is the outcry over efforts to overhaul point-of-sale disclosure for investment funds.

It beggars belief that an industry built wholly on trust is unwilling to support simple pre-trade disclosure. How can clients be expected to trust firms and advisors that would rather not tell them what they’re buying upfront? Firms would prefer to do it after the fact, and they cite a series of specious reasons why.

They claim that clients will suffer because of delayed trades. But investment funds are long-term vehicles priced once a day, not fast-moving stocks. The idea that deadlines could be missed because of the proposed regime is also dubious — there is just one RRSP deadline, and it is well known by clients.

They argue that the new document, and accompanying paperwork, will raise costs for clients, conveniently forgetting that under the new framework, prospectuses that can run hundreds of pages in length will no longer have to be delivered.

They insist that mobile advisors won’t be able to handle all the documents, thereby limiting consumer choice. Of course, firms have unilaterally rationed shelf space for years, without much concern for client choice.

Finally, the idea that investment funds will suffer relative to competitive products is also dubious. In fact, this regime will improve fairness by subjecting mutual funds and seg funds to the same standards. That funds will be treated differently from other products is already a fact of life — because they are fundamentally different. Funds are in primary distribution, for one. They also charge ongoing fees and trailer fees, which other securities do not. They are treated differently because they are different, and it’s imperative that investors understand this before they buy. In the current market environment, it’s essential that financial services firms earn their clients’ trust. It’s not their birthright and, if this latest squabble is any guide, it’s not deserved.