CSA releases status reports on fiduciary duty, fund fees

The CSA published status reports on two recent consultations related to mutual fund fees and the appropriateness of introducing a statutory best interest duty. The coordinated release reflects the interconnectedness of the input received from various stakeholders, following extensive consultations on both topics.

Read: PMAC supports fiduciary duty for advisors These reports follow the receipt of 99 and 93 comment letters, respectively, as well as in-person consultations by several jurisdictions. These consultations elicited a number of common themes from stakeholders, reflecting the connection between the topics discussed.

“We are pleased with the level of engagement and the input we received during our consultation process, and have summarized for stakeholders the various themes we heard in the interest of driving these discussions forward,” says Bill Rice, chair of the CSA and chair and CEO of the ASC.

Read: SEC supports fiduciary standard

He adds, “This process identified common issues that must be considered for Canadian regulators to achieve positive outcomes for investors, such as the dynamics of the adviser/client relationship, a need for clear identification of conflicts of interest and addressing a lack of clarity in how advisers are compensated.”

The CSA are seeking to coordinate their policy considerations on these initiatives going forward and will work jointly with a view to considering next steps and communicating in the coming months what research initiatives or regulatory actions will be undertaken.

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