Advocis: CSTO proceed with caution

Canada’s advisors have a critical interest in outcome

March 18, 2010 – Toronto – With the Canadian Securities Transition Office (CSTO) in the process of drafting the legislation around a national securities regulator, Advocis, The Financial Advisors Association of Canada, has provided the office with the benefit of input of those that will be impacted by the outcome – Canada�s financial advisors.

“Before they finalize anything, the CSTO needs to understand where we stand on the fundamental issues that will ultimately shape what the national securities regulator looks like,” said Greg Pollock, Advocis� president and CEO. “Our submission has several recommendations that include a commitment to principles-based regulation; and a review of the self-regulatory organizations� that have oversight of financial advisors.”

There is overwhelming evidence that principles-based regulation works. This type of regulation is in the form of broad-based standards rather than detailed rules and makes the market players responsible for the implementation of suitable practices.

“We know that CSTO understands that they are embarking on a great opportunity to right some wrongs and move the regulation of securities down a more effective and efficient path,” continued Mr. Pollock. “I know that they will give Advocis� recommendations full consideration.”

Advocis also suggests that there should be no interference with the regulation of the distribution of segregated funds. There is appropriate oversight under the provincial insurance regulatory framework. To ensure the voices of all securities registrants are heard, Advocis also strongly recommends the creation of a permanent advisor panel to ensure appropriate policy development.

About Advocis

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