Ban on embedded commissions will hurt middle-class Canadians, association says
Status reports conclude more work is necessary in both areas
Research by Invesco is finding that many investors are fine with embedded fees
Paying fees for financial advice separately from those of financial products would result in price competition and better advice
By focusing on fees investors are missing a key component in measuring the value of advice
There is much debate as to whether such a move will protect clients of financial services or restrict access to financial advice
Investors says they want to know the cost of their fees in dollar terms
Glen Gowland, chairman, Investment Funds Institute of Canada (IFIC), discusses industry consolidation due to rising regulatory costs, the impact of CRM 2 on access to advice and the future of the regulatory framework in Canada. He spoke with Jade Hemeon, senior reporter with Investment Executive, at the 2013 IFIC Annual Leadership Conference 2013 in Toronto.
John Brogden, CEO, Financial Services Council, Australia, discusses the impact of new Australian regulations that came into effect on July 1st, 2013. They include: a best interest duty, the abolition of commissions (except for life insurance agents) and proposed new tougher new rules for accreditation. Impacts of the new legislation include a 1.8 billion dollar cost to implement, a drop in the number of Advisors in Australia, and the hope -- of a revival for the role of advisor as a profession.
There’s a need to study how these changes would affect clients’ access to advice, IFIC chairman says