2013 - 2016 Regulatory Bulletins
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– September 2016
Bulletin #078-09/16– September 2016
– April 2016
Bulletin #077-04/16– April 2016
– April 2016
Bulletin #076-04/16– April 2016
– Jan 2016
On July 1, 2016, amendments to Parts V and VII of Ontario's Insurance Act will come into force.
Bulletin #075-01/16– Jan 2016
– Oct 2015
Advisors dealing in mutual funds are now able to flow their commissions through to their own corporations.
Bulletin #074-10/15– Oct 2015
– Oct 2015
The Canadian Securities Administrators ("CSA") released the second of two major studies it commissioned to look at the issue of mutual fund fees.
Bulletin #073-10/15– Oct 2015
– Sept 2015
Reforming how advisors are regulated means recognizing the nature of professional quality advice.
Bulletin #072-09/15– Sept 2015
– June 2015
the Brondesbury Report is not so much a report as an academic literature review – but one that gives Canada little attention.
Bulletin #071-06/15– June 2015
– June 2015
Saskatchewan's new Insurance Act received Royal Assent on May 14, 2015.
Bulletin #070-06/15– June 2015
– June 2015
FSCO announced they will be introducing on–site reviews of insurance advisors to determine if they are compliant with the Insurance Act, best practices and industry regulations.
Bulletin #069-06/15 - June 2015
– January 2015
Once in effect, the changes to Alberta's Securities Act will let advisors offer their securities-based dealing and advisory services to their clients through a professional corporation, while still under the supervision of their registered firm.
Bulletin #068-01/15 - January 2015
– September 2014
On September 12, 2014, The Financial Services Commission of Ontario (FSCO) issued a warning to consumers and life insurance agents that the selling or transferring of life insurance policies – commonly referred to as viatical settlements, life settlements or stranger-owned life insurance (STOLI) – is a practice that, depending on the circumstances, may not be legal in Ontario.
Bulletin #067-09/14 - September 2014
Stage Two, Take Effect - July 2014
July 15, 2014 will see the first batch of significant changes under Stage Two of the Client Relationship Model, generally known as "CRM-2," which the Canadian Securities Administrators began to roll out on July 2013. The most prominent of these changes are:
- pre-trade disclosure of charges
- enhanced trade confirmation disclosure for debt securities
- expanded relationship disclosure
Bulletin #066-07/14 - July 2014
anti-terrorist financing requirements - June 2014
On February 1, 2014, new regulations to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act took effect. FINTRAC (the Financial Transactions and Reports Analysis Centre of Canada) has published revised guidelines to clarify the responsibilities of life insurance agents and companies, and for securities advisors and dealers.
Bulletin #065-06/14 - June 2014
On July 1, 2014, Canada's Anti-Spam Law will come into force. The law, which is considered to be one of the world's most stringent and complicated anti-spam laws, will have major implications on how advisors conduct their business.
At its core, the new law prohibits someone from sending a commercial message to an electronic address unless
- a statutory exemption applies, or
- the sender has the recipient's implied or express consent.
Bulletin #062-02/14 - February 2014
- February 2014
Today, Rick Bartolucci, MPP for Sudbury, and Vice-Chair, Standing Committee on Government Agencies, tabled the Financial Advisors Act, 2014 in the Ontario legislature. This landmark bill is a critical step towards the professionalization of our industry, and a development that Advocis has long advocated for. In fact, Advocis has been working closely with the Ontario government for the past several months to ensure this legislation mirrors the framework laid out in Raising the Professional Bar, Advocis's proposal for self-regulation.
At a national level, Advocis has been encouraging governments across Canada to introduce legislation to accredit professional associations for financial advisors. The bill tabled by MPP Bartolucci is a very positive step in that direction.
Bulletin #060-02/14 - February 2014
and Best Interest Duty - December 2013
The banning of third party commissions on mutual fund sales and the possible imposition of any form of a statute-based, best-interest-style fiduciary duty are inextricably connected – both conceptually for those who must interpret and advise on regulatory texts and practically for those who must abide by such regulation. Therefore, it is welcome relief for Advocis that the CSA now appears to be adopting our pragmatic approach to these overlapping issues.
While neither status report provides us with new material information about the CSA's intentions, they are useful encapsulations of how the CSA views the issues at present, and by linking the issues as they have through the co-ordinated release, we now know that the CSA is beginning to frame the debate in the manner which Advocis has long pressed for. This can only help place the Association in a much stronger position going forward, one from which we can further delineate and refine our arguments.
Advocis will continue to press home its message that banning third party commissions and imposing a statutory best interest duty will harm consumers and advisors alike, creating an "advice gap" which could leave hundreds of thousands of Canadians without access to affordable and professional financial advice.
Bulletin #061-12/13 - December 2013 [PDF - 675KB]
regulatory exposure for securities-licensed advisors - December 2013
On December 5, 2013, the Supreme Court of Canada issued its ruling in McLean v. British Columbia Securities Commission. In March, Advocis used its intervener status in the case to present arguments on behalf of its members. By once again granting Advocis intervener status, the Supreme Court re-acknowledged the valuable perspective we bring to legal and regulatory matters involving financial advisors.
McLean should function to dramatically reduce the timeline of potential prosecution faced by advisors. Advocis believes the Supreme Court has offered guidance which reasonably balances the need to protect advisors from interminable litigation with the need to provide adequate protection to consumers from "rogue" advisors across multiple jurisdictions.
Bulletin #059-12/13 - December 2013
Our industry is on the edge of radical transformation. Across Canada, financial advisors now face the greatest set of regulatory threats to their profession in living memory. This is not mere rhetoric. It is fact.
We could see a dramatic alteration in how advisors are paid. The time-honoured and trust-based relationship advisors have with their clients could be turned into a regulatory tight-rope. And many Canadians could be left without advice—including those who need it the most.
Bulletin #052-04/13 - April 2013 [PDF - 287KB]
Bulletin #051-03/13 - March 27, 2013 [PDF - 197KB]
Clarification of limitation period under B.C.'s Insurance Act.
Bulletin #049-02/13 - February 4, 2013 [PDF - 201KB]