Advisors favour “best interest” standard<\/a><\/strong><\/p>\n Regulators in B.C., Alberta, Quebec and Manitoba, however, are ruling out the idea. “In their view, in the current regulatory and business environment, implementing the targeted reforms to deal with specific harms identified will meaningfully and practically lead to better investor outcomes and advance the best interest of all investors,” the notice says.<\/p>\n
Regulators in Nova Scotia and Saskatchewan are focused on finalizing the targeted reforms for now, but “may be open to further considering a regulatory best interest standard provided substantial revisions are made to add clarity and predictability,” the notice says.<\/p>\n
The CSA indicates that it will continue working on many of the targeted reforms over the coming year, and aims to produce rule proposals that will then go out for public comment.<\/p>\n
The best interest consultations “will continue on a parallel path,” it says.<\/p>\n
Commenting on the status of the project, Grant Vingoe, vice chairman of the OSC, says, “While we are unanimous on raising the bar, fair to say, this was a challenging discussion, with different points of view across the country. We believe there was tremendous value in putting these perspectives on the table and giving investors and market participants the opportunity to weigh in. However, we’ve reached a fork in the road and are taking the route we feel is best.”<\/p>\n
Vingoe says the OSC is prepared to “demonstrate leadership” on the issue of introducing a best interest requirement. “This is about doing the right thing and fulfilling one of our greatest responsibilities as a regulator: delivering effective investor protection to the public we serve,” he says. “It’s what investors expect and deserve.”<\/p>\n
There’s more work that needs to be done to establish how the best interest standard would apply across the various business models in the market, Vingoe says, adding that the OSC will be undertaking further consultations along with regulators in New Brunswick.<\/p>\n
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