Compensation concerns limit advice: CAILBA

Embedded compensation is a hot topic at the 2013 CAILBA Annual Meeting.

Advisor.ca is live tweeting from the event. A sample:

8:54 AM: Early data on embedded competition in the UK indicates a lot of people have left the industry because of regulatory change. That ultimately limits the number of people who have access to advice and that ultimately impedes wealth building. The fiduciary standard also has potential to drive up errors and omissions insurance and other costs. #CAILBA

8:51 AM: It’s a political issue whether Advocis becomes a self regulator. We want governments to accredit organizations through legislation. But ideally there will be one SRO. It’s better for everyone. #CAILBA

Read:

8:46 AM: The CSA discussions on embedded compensation have been around for years. We pick up bad ideas from regulators around the world. #CAILBA

8:38 AM: If we don’t do a good job of explaining the risks of higher capital requirements, we could be looking at changes in product mix. #CAILBA

8:37 AM: An international standard for capital can change the insurance business globally. And international standards for regulation that are emerging globally have potential to make it to Canada. #CAILBA

Also check out:

Advisor compensation model flawed: FPSC

Fee for advice model lacks transparency: IFIC

CSA paper highlights ugly truth

Worry about value, not fees