Taking away exemption not in best interest of anyone: Advocis

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Aug 24, 2010 – Toronto � The latest restriction imposed by the CRTC on advisors will only hurt Canadians was the conclusion made by Advocis, The Financial Advisors Association of Canada, after reviewing the CRTC�s bulletin 2010-600. The bulletin �reinterprets� what is and is not unsolicited telecommunication by investment dealers, mutual fund dealers and financial advisors. Now, all financial advisors are subject to all telemarketing restrictions and all must register as telemarketers.

�The CRTC has dealt a huge blow to advisors and their clients. Originally, the Commission acknowledged that advisors play a unique role in the lives of consumers and as such, made some accommodations. These exemptions are removed and now, according to the CRTC, we provide no more valuable service than, say, window washers,� said Greg Pollock, Advocis� president and CEO.

The CRTC has offered no evidence that the original exemption for advisors and dealers had caused any problems for consumers. This leaves Advocis to conclude that this is another example of regulation for the sake of regulation.

�Advisors work hard to create long-term, trusting relationships with their clients. Do you really think that they are going to go out and try to annoy their clients?� Pollock asked rhetorically. �Doing that is really not good for business.�

Included among the restrictions are defined times when advisors can and cannot call clients. This is despite the fact that more and more advisors are licensed across a number of jurisdictions � and, ultimately, time zones. A shift � good or bad � at Toronto�s stock exchange cannot be communicated to BC clients until hours after the market has opened, for example.

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 www.advocis.ca.