The incoming president and CEO of the Investment Funds Institute of Canada is determined to build a strong regulatory structure for a sometimes embattled industry and ensure that the association’s members develop a clear, unified voice.
“The fund industry is one of the key contributors to building the wealth of Canadians,” says Joanne De Laurentiis, who takes over from outgoing IFIC head Tom Hockin in mid-January. “So it’s really important to have a good, solid [regulatory] framework.
“And the other issue is having what could be called a ‘common table,’ around which the members can sort out what the common issues and interests are.”
De Laurentiis, who has almost 25 years of experience in leading financial services organizations, is stepping down as president and CEO of Credit Union Central of Canada, a job she has held since 2001, to take the top spot at IFIC. She is also stepping down as chairwoman of Vancouver-based Ethical Funds Co. Prior to heading up Credit Union Central, she served in senior roles at Mondex Canada, the Interac Association and the Canadian Bankers Association.
As IFIC’s new head, De Laurentiis will have her work cut out for her. In the past few years, the fund industry has been rocked by the market-timing scandal, which put member firms in the spotlight and resulted in five firms agreeing to fines and restitution payment, and by hedge-fund scandals, such as the Quebec securities regulator’s recent suspension of Montreal-based Norbourg Asset Management Inc.
In her address to the IFIC conference in September, chairwoman Brenda Vince spoke frankly about some of the industry’s challenges, particularly the “perception that the mutual fund industry, at best, lacks concern for the interests of investors or, at worst, is rudderless and lacks a common voice.”
Vince, president of RBC Asset Management, was appointed chairwoman of IFIC in late August, when Michel Fragasso stepped down in the aftermath of the Norbourg suspension.
Perception and fact
Although, Vince said, “There’s a world of difference between perception and fact,” she nevertheless exhorted members to set an active agenda to face the tough issues in the areas of regulation, internal and external communication and public perception. “We should be guided by a sense of urgency and a bias for action,” she said.
Rather than being daunted, De Laurentiis, who is still being briefed on industry issues prior to taking up her new post, says she is ready for the challenges of the new job and encouraged by the IFIC chairwoman’s words.
“Every industry group faces challenges at some point. It’s not all easy going,” De Laurentiis says. “I’m comfortable and impressed by the commitment at the board level that, whatever the negative issues are, they have to be faced head-on, and that resolutions and approaches have to be brought to bear. It’s part of what makes the job interesting.”
De Laurentiis was drawn to the job by the opportunity to help the industry strengthen its regulatory framework — one, she adds, that already had a good track record — and make sure it “supports the growth of the industry and protects consumers.”
She expects one of the more immediate issues for IFIC will be the possible requirement by the Canadian Securities Administrators for each mutual fund to have an independent review committee. The initiative is being led by the Ontario Securities Commission.
“I’m familiar with [the issue] through my involvement with Ethical Funds,” De Laurentiis says. “I expect one of the first things I’ll do is work with the board to come to a decision and a position. It’s one of the top issues. We’ll deal with it pretty quickly.”
She believes her experience in managing and building trade associations, working on regulatory issues and her knowledge of the financial services industry make her a good fit for the job. She plans to reach out to members to hear all points of view and facilitate communication among them. But she is equally committed to the idea that IFIC should speak with one voice and act decisively.
“Any trade association executive has to have a consensus style, because you can’t just take a position and say: ‘That’s the way it’s going to be; tough for the rest of you’,” she says. “The leadership comes from moving the issues forward and not allowing the consensus approach to bog everything down — moving things forward in a really timely way, so the industry benefits.” IE
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New IFIC head calls for a unified voice
Joanne De Laurentiis takes over from Tom Hockin
- By: Rudy Mezzetta
- January 4, 2006 January 4, 2006
- 10:38