James Langton FPSC proposes “duty of loyalty” for financial planners Following its annual general meeting in Toronto on June 8, the Investment Industry Association of Canada (IIAC) laid out its priorities for the coming year, which are headlined by plans to argue against a best interest standard for advisors. The industry trade association says that a best interest standard would, “not add substantively to the targeted reforms for investor protection, and may result in unrealistic expectations among clients and unnecessary costs to clients and the industry.” In terms of the so-called “targeted” reforms that the Canadian Securities Administrators (CSA) proposed for consultation back in April, the IIAC indicates that it will argue for “a balanced approach leaving sufficient professional discretion and flexibility for firms, and ensuring reforms are practical and cost-efficient.” The trade group also aims to tackle some of the fundamental issues facing the industry generally, particularly small and mid-sized dealers, through its new Committee on Industry Structural Change. “As we have throughout our ten years of existence, the IIAC will continue to engage constructively with securities regulators and governments to fight for cost-effective rules, fight against rules that interfere with business activity and market efficiency, and promote incentives for capital formation and growth,” said the trade group’s president and CEO, Ian Russell, in a statement. The other issues on the IIAC’s agenda include working with the self-regulators, “to provide greater rule harmonization and enable easier integration of operations unto a single dealer platform through ‘parallel’ registration (eliminating the 270-day rule) and [Investment Industry Regulatory Organization of Canada (IIROC)] incorporation,” it says. It will also seek to address cybersecurity; reduce market data and other market structure costs; and provide industry input to the ongoing effort to create a cooperative securities regulator. In addition to laying out its agenda for the year ahead, the IIAC also announced that John Chambers, CEO of Calgary’s FirstEnergy Capital Corp., has been elected chair for 2016-2017; and, that Sandy Cimoroni, senior vice president shared services & chief operating officer at Toronto’s TD Wealth, has been elected vice chair. OSC prepared to go it alone with best interest standard CSA proposes best interest standard No consensus on CSA’s best interest proposal Response Read the response to this article from Advocis: Only the profession itself can interpret a best interest standard, investmentexecuitve.com, June 14, 2016 Photo copyright: Bloomberg Share this article and your comments with peers on social media U.S. firm offers training for meeting DOL fiduciary standard Related news FAIR Canada seeks clarity on client-focused reforms Keywords Best interest standardCompanies Investment Industry Association of Canada The investment industry is girding for a fight against the introduction of a proposed best interest standard in Canada. Facebook LinkedIn Twitter
Toronto stock market dips on weakness in the energy and financials sectors Facebook LinkedIn Twitter Related news Share this article and your comments with peers on social media leungchopan/123RF Aleksandra Sagan Canada’s main stock index rose by more than 100 points on Friday in a broad-based advance led by the industrials sector.The S&P/TSX composite index advanced 107.93 points to 15,729.40, with stocks in the industrial sector gaining on average 1.38%. TSX gets lift from financials, U.S. markets rise to highest since March Keywords Marketwatch S&P/TSX composite hits highest close since March on strength of financials sector The Toronto index also got a lift from the energy sector, which rose 0.67% on the strength of the price of oil, said Macan Nia, a senior investment strategist with Manulife Investments.The price of the commodity jumped almost 2% with the June crude contract rising US$1.29 to US$69.72 a barrel.Nia said there are potential upside catalysts for oil, such as possible new sanctions on Iran, that could raise the prospects of a tighter global crude supply environment and send prices higher in the near term, which would be positive for the Toronto Stock Exchange (TSX).Both the Canadian dollar and the TSX have a high correlation to the price of oil, due to the large number of energy companies listed on the TSX as well as the sector’s primacy in the Canadian economy.In New York, indices also made gains. The Dow Jones industrial average gained 332.36 points to 24,262.51. The S&P 500 composite index rose by 33.69 points to 2,663.42 and the Nasdaq composite index moved up by 121.47 points to 7,209.62.That rally came after the U.S. Department of Labor released employment figures for the month of April. U.S. employers added 164,000 jobs last month and average hourly earnings rose 2.6% from the year before, according to the report.These figures were weaker than expected, said Nia.“It eased any concerns that the markets may have had in terms of a faster interest rate hiking cycle and that was positive for U.S. equities,” he said.The Canadian dollar was trading at US77.75¢, unchanged from Thursday.Elsewhere in commodities, the June natural gas contract fell about US2¢ to US$2.71 per mmBTU. The June gold contract advanced US$2 to US$1,314.70 an ounce and the July copper contract moved up roughly half a cent to about US$3.09 a pound.