THE 360 NEWSLETTER
On January 25, 2024, CIRO published its Position Paper: “Policy options for leveling the advisor compensation playing field”. This document aims, at a glance, to bring the industry (mutual fund and investment dealers) at the same playing field level in terms of available options for payment of commissions, and consequently address existing gaps and adverse consequences that have been known for a long time in the industry.
CIRO’s proposed changes can be summarized like this:
- Enhanced existing commission payment options to corporations (similar to status quo for mutual fund dealers, easy and quick fix); and
- Adoption of brand new options for representatives to conduct their activities under a corporation (needs structural change in different jurisdictions and regulators, mid/long-term roadmap).
In its longstanding commitment to promote and facilitate the distribution of independent advice to investors, Investia and its affiliate iA Private Wealth took this opportunity to bring together stakeholders and provide a formal response to CIRO:
We believe in choices, options, flexibility. In this spirit, this is key to have the option to conduct mutual fund activities under a corporate structure if desired. That will achieve many desired outcomes for representatives: level playing field with other financial services and products (such as life insurance), promote delivery of service, facilitate the transfer of blocks of business, reduce tax impacts and gaps with delivery of similar financial products and, at the end, simply make the delivery of mutual funds and other similar products easier and more efficient, for the benefit of your clients.
We will continue to monitor closely this consultation and subsequent phases, advocate for your industry and keep you informed.
Link to CIRO Consultation:
Position Paper - Policy options for leveling the advisor compensation playing field (ciro.ca)