Letter: Rules don’t stop bad actors

Thank you for your reporting. Do you ever wonder why the regulators focus on the financial services sector more than any other services sector? There are bad actors who rip off clients, absolutely. But the problem is very few of the rules imposed do anything to stop the bad actors. They will continue to line their pockets because they do not care about the rules. Why not focus on those detriments to society, figure out what they are doing, and make an example which will deter other bad people from joining in?

The majority of rules seem to be behind the scenes and have nothing to do with face-to-face interactions with clients. Is it possible that the regulators are more interested in generating more rules simply to keep their jobs? Rather than incremental changes, I wonder if the end goal is transparent, clearly described, and agreed to with the industry and consumers, ending the need for constant tinkering with the rules. There seems to be no strategic thinking around financial services.

While I’m not a fan of the big banks marketing their products through untrained bank-branch employees, one cannot argue with the strength of our institutions during the financial downturns in 2000, 2007-8 and during Covid. Canada had no failures in banks or insurance companies. So why are regulators so focused on “protecting” the consumer? Isn’t the greatest protection not worrying about the financial institutions in our country?

I have a construction client who was picked up by a private jet and flown to a supplier in the U.S. They toured the plant, played golf and had a five-star dinner before they flew him home. What is the difference between those rewards for supporting a supplier in the construction sector versus rewards in the financial sector?

The harsh reality is the more expensive providing financial advice becomes, the fewer people who can access the help they need. The most vulnerable in our society are being punished by overzealous regulators who care more about rules than punishing the bad people in all sectors.

– Dennis Yanke, CFP, CLU, ChFC, Kitchener, Ont.

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