IDA conference update: Bases loaded for securities reform, Oliver says

National securities regulator would save $40 million a year, study says Offshore account ownership must be disclosed, IDA says Retail dealers surviving as profits collapse Market cons facing longer jail sentences, expert says (June 24, 2003) It’s time to take a closer, and critical, look at several promising proposals to reform securities regulation in Canada, […]

By Doug Watt | June 24, 2003 | Last updated on June 24, 2003
3 min read
  • National securities regulator would save $40 million a year, study says
  • Bases loaded for securities reform, Oliver says
  • Painless prospecting — Marketing through “advocacy” client
  • Berkshire exec says compliance costs will fell advisors, dealers
  • BONUS TOOL: Asking clients for referrals (a template letter) Back to IDA coference coverage main page

    The current structure, including the Canadian Securities Administrators’ uniform securities legislation project, needs to be more comprehensive, Oliver stated. “Furthermore, without ongoing coordination in policy making, harmonization will start to unravel, even before it starts.”

    So while each proposal has its merits, the deficiencies need to be addressed before a final model can be chosen, Oliver said. “We are looking for dramatic improvement, not tinkering.”

    One reform project that has made recent progress is the passport system, which would allow primary jurisdictions to supervise market access across the country, including registration. “We may get a passport system some time in the next few years,” Oliver said. “That would be a real improvement, but we can do better.”

    Ultimately, the final decision on regulatory reform is political, Oliver said. “That means the private sector must maintain the pressure for reform. Don’t let decision makers off the hook. Keep pushing for the best possible model.”

    In a speech earlier in the day, outgoing IDA chair Terry Salman defended the association’s self-regulatory model, which has been a subject of debate within the financial services industry. “The argument being that because self-regulatory organizations have an inherent conflict of interest, they cannot be trusted to act in the best interest of the public,” he said.

    While there’s no question the dual role of regulator and trade association creates a built-in conflict, critics often miss the fact that the IDA is mandated to place the interests of the public first, Salman said.

    “Consider for a moment the consequences if we did not,” he said. “How long do you think it would take for the public, government regulators and the media to react if we were only to act in the interest if out membership? A nanosecond might be long.”

    • • •

    Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca

    (06/24/03)

    Doug Watt

  • Offshore account ownership must be disclosed, IDA says
  • National securities regulator would save $40 million a year, study says
  • Bases loaded for securities reform, Oliver says
  • Painless prospecting — Marketing through “advocacy” client
  • Berkshire exec says compliance costs will fell advisors, dealers
  • BONUS TOOL: Asking clients for referrals (a template letter) Back to IDA coference coverage main page

    The current structure, including the Canadian Securities Administrators’ uniform securities legislation project, needs to be more comprehensive, Oliver stated. “Furthermore, without ongoing coordination in policy making, harmonization will start to unravel, even before it starts.”

    So while each proposal has its merits, the deficiencies need to be addressed before a final model can be chosen, Oliver said. “We are looking for dramatic improvement, not tinkering.”

    One reform project that has made recent progress is the passport system, which would allow primary jurisdictions to supervise market access across the country, including registration. “We may get a passport system some time in the next few years,” Oliver said. “That would be a real improvement, but we can do better.”

    Ultimately, the final decision on regulatory reform is political, Oliver said. “That means the private sector must maintain the pressure for reform. Don’t let decision makers off the hook. Keep pushing for the best possible model.”

    In a speech earlier in the day, outgoing IDA chair Terry Salman defended the association’s self-regulatory model, which has been a subject of debate within the financial services industry. “The argument being that because self-regulatory organizations have an inherent conflict of interest, they cannot be trusted to act in the best interest of the public,” he said.

    While there’s no question the dual role of regulator and trade association creates a built-in conflict, critics often miss the fact that the IDA is mandated to place the interests of the public first, Salman said.

    “Consider for a moment the consequences if we did not,” he said. “How long do you think it would take for the public, government regulators and the media to react if we were only to act in the interest if out membership? A nanosecond might be long.”

    • • •

    Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca

    (06/24/03)