CARP Submission to the Canadian Securities Administrators

In February 2013 – CARP Submitted a response to the Canadian Securities Administrators (CSA)’s consultation paper The Standard of Conduct for Advisers and Dealers: Exploring the Appropriateness of Introducing a Statutory Best Interest Duty When Advice is Provided to Retail Clients, in which they explore the benefits and concerns of introducing a statutory fiduciary, or ‘best interest’, standard for financial advisers and dealers.

CARP supports the notion of fiduciary duty. To the surprise of many, there are currently no, or very weak, statutory fiduciary standards governing investor-advisor relationships. As a result, it creates an uneven playing field between financial professionals and investors. Without fiduciary standards, advisors can take advantage of investors’ trust, inadequate financial literacy, and high levels of discretion given to their advisors, leaving investors vulnerable to unwanted financial risks. CARP has made some recommendations that aim to level the playing field, such as introducing robust  fiduciary duty standards and increasing access to financial restitution and complaint processes.

CARP’s Submission to the Canadian Securities Administrators is now available for download, please click here for ” The Need for a Statutory Best Interest for Financial Advisers”