Toronto � March 5, 2010 – Advocis, The Financial Advisors Association of Canada, has offered the Canadian Council of Insurance Regulators (CCIR) some timely input into its strategic plan.
“The CCIR asked for our ideas and we were happy to oblige,” said Greg Pollock, Advocis� president and CEO. “Our recommendations and suggestions are all about creating an effective working environment that benefits both the financial advisor and their client.”
One of the primary recommendations in the Advocis submission focused on harmonization; not just of existing regulations such as mandatory continuing education and errors and omissions requirements but also how the CCIR can move forward to implement future regulations.
“Industry stakeholders, not just Advocis, invest time and resources to work with the CCIR to arrive at an effective and mutually agreeable solution, only to find later that one province has invoked its opt-out option,” explained Mr. Pollock. “Needless to say, this entirely defeats the purpose of working at the national level. We need them to implement a more effective process so that we know at the outset what we are up against.”
Advocis also offers a note of caution about changing the regulatory environment as a result of the global financial crisis. Market uncertainty does not necessarily mean that there is a need for additional regulation of the industry. The focus has to continue to be on risk and solutions.
The submission also commends the CCIR for its commitment to early consultation with stakeholders in the development of public policy, calling it a model for other regulators.
Other recommendations include: a commitment to the proven effective principles-based regulation that focuses on outcomes rather than rules-based regulation; regulatory recognition of industry practices; and continued regulation of segregated funds sales under the provincial regulatory framework.
Advocis, The Financial Advisors Association of Canada, is the oldest and largest voluntary membership association of financial advisors and planners in Canada. With more than 10,000 advisors and planners in 43 chapters across Canada, Advocis members provide financial advice, product service and employee benefit planning to millions of Canadians in a number of areas including estate and retirement planning, wealth management, risk management and tax planning. For more information about Advocis, visit www.advocis.ca.