It can’t be called a passionate affair, but the traditionally testy relationship between financial services dealers and their regulators seems to be getting a bit warmer.
Ratings in Investment Executive’s second annual Regulators’ Report Card indicate that many dealers are showing greater appreciation for the work regulators do. Regulators are demonstrating more understanding of the difficulties firms have in runing compliant businesses.
IE’s research team, which included researcher Olivia Li, spoke to 122 compliance officers from dealerships across the country, an increase from the 96 dealers interviewed last year.
COs were asked to rank their regulators — the Mutual Fund Dealers Association of Canada, the Investment Industry Regulatory Organization of Canada and provincial regulators — in the areas of communication, fees, enforcement and proactive policy.
Overall, scores for regulators went up in almost all categories — albeit from a low base. Dealers recognize regulators are making strides to improve their communication policies, fee structures and sensitivity toward smaller firms, However, dealers’comments indicate regulators still have a long way to go in other areas, especially in reducing the regulatory burden and increasing dealer representation on regulators’ boards.
However, the regulators affirm that it’s not their job to be liked; rather, their job is to be fair.
For more on the 2010 Regulators’ Report Card, click here.
For stories from the 2009 Regulators’ Report Card, click here.
IE