In 2016, the Panel focused on five critical areas of investor protection: conflicts of interest and conflicted compensation, the need for a best interest standard, risk profiling, the Ombudsman for Banking Services and Investments (OBSI), and the new
During the year, the Panel put the focus directly on the state of investor protection in
For example, in its submission to CSA Consultation Paper 33-404, the Panel called for a best interest standard to “facilitate the shift of investment advice from a sales focused industry to a profession, where investors are well-served by individuals with the expertise and training to meet their needs and consider their interests first and foremost.”
The Panel also built on independent research it commissioned from
In addition, the Panel called on regulators to eliminate conflicted compensation practices like embedded commissions. Conflicted compensation and any inducements that subordinate investors' interests to those of registrants and firms are unacceptable – they undermine the trust that is an integral part of the advisor-client relationship.
Conflicted compensation practices and embedded commissions will remain a high priority for the Panel in the year ahead.
“The year 2017 has the potential to be a transformative year for investor protection,” said
About the Panel
The Panel is comprised of seven members appointed by the Chair of the Commission following a public application process and on the advice of a selection committee consisting of two Commissioners and a Vice-Chair. Members of the Panel are appointed for two-year terms.
The Panel meets monthly, either in person or by conference call. During the 2016 calendar year, we met 10 times. We maintain frequent contact between meetings to develop our written submissions and to share and exchange views on developments in securities law and other relevant matters. During our meetings, we discuss upcoming submissions and plans for future outreach, research and consultation.