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The OSC has announced the beginning of the comment period for the 2014-2015 draft Statement of Priorities. It runs until June 1, 2014.

Read: OSC wiretaps long overdue, says former inside trader

The draft highlights 12 main priorities. Topping the list is the best interest duty. The regulator will “[c]omplete the joint OSC/IIROC/MFDA mystery shop research sweep of advisors to gauge the suitability of advice currently being provided to investors; [c]omplete research that will inform [its] decision regarding the application of a best interest duty and evaluate options to move forward.”

Embedded mutual fund fees are second on the list. OSC will conduct research to “determine whether and to what extent the perceived conflicts of interest associated with various forms of commission compensation (including product embedded commissions) influence adviser behaviour.”

Read more here.

Also read:

MFDA fines reach almost $11 million in 2013

OSC sent more to jail in 2013

Originally published on Advisor.ca
See all commentsRecent Comments

AMI.MAISHLISH

If the “best interest” duty is implemented AND enforced, that would relegate the “commission” and “embedded fees” question to the domain of the irrelevant.

IMO, that’s so with investments as well as with risk management/transfer (life insurance and related solutions)

The $64,000,000,000,000,000,000 question (taking inflation into account) is whether the regulators will have the resolve to implement and enforce the “best interest” duty.

Tuesday, April 29 @ 6:25 pm //////

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