Ellen Roseman

Personal finance columnist at the Toronto Star and previously the Globe and Mail. My passion is consumer advocacy and making sense of money

Jun 30, 2021
Published on: LinkedIn
1 min read

The new client-focused reforms, some of which go into effect today, will highlight the conflicts of interest that financial advisors face.

For example, if their employer sells only proprietary products (so-called house brands) and nothing else, they must have a conversation with clients about potential problems arising from limited choice.

Simply handing over a disclosure document for clients to sign is not enough to satisfy the requirements.

@faircanada #bestinterest #conflictsofinterest #proprietaryproducts #financialliteracy #securitiesregulators #canada

Friday dawns with the introduction of Client Focused Reforms (CFR) and a new standard for conflicts. Proprietary product and compensation incentives will finally be finally seen as presumptively raising conflicts. How will advisors handle this? Has the reign of dinosaurs (salespeople) finally come to the end? For these reforms to have impacts, then answer must be "yes." The era of professionalism is here. Dealers face their Rubicon and must move towards serving the interests of their customers (not as AIG/BMO used to say "The producer is the customer". For a carefully non-opinionated commentary, see #MichelleScriver: https://lnkd.in/dB8NySt #CSA #OSC #MFDA #IIROC #FSRAO #ASC #BCSC #conflictofinterest #CFR #time4change

Addressing the conflict of proprietary products

advisor.ca