Please See This Article: FCAC To Probe Practices At Smaller Banks
Another example of why Canada needs to move to one regulator for all financial services. 4500 complaints to FCAC about the big 6 banks mostly due to sales practices. There are different sets of rules for different players in the financial world. Banks, investment (MFDA & IIROC) and insurance practices should all be required to meet the same standard of care when it comes to clients. This should include the same disclosure rules, the same rules around tied selling and most importantly the same rules about client care and compliance.
The financial services industry is adding significant cost and work to advisors under different flags creating unfair playing fields. If we really want consumer protection all professional advisors in any of the listed industries would agree to regulations that result in this. Move to one national governing body for all financial services. Put some teeth in penalties to those who are running unethical practices or not complaint to clients best interests. Why should a clients care be different with an insurance advisor or a bank employee? Why should one have different sets of requirements than the other?
Running a practice that has associated advisors in 5 differently regulated industries I can tell you the fees, the administration and the knowledge of what’s required in each are getting to the breaking point. Most advisors got into the industry to help people. This is driving some into early retirement and making it increasingly difficult to bring in younger career advisors. Regulation is still evolving around tech offerings as well, whether advisor based or client online choice offerings. Its truly time for a national presence to govern all financial services and not only even the playing field but make the world a better place for consumers.
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