Canadian Regulators Publish Consultation Paper on a Statutory Best Interest Duty

TORONTO, Oct. 25, 2012 /CNW/ - The Canadian Securities Administrators (CSA) today published for comment CSA Consultation Paper 33-403 The Standard of Conduct for Advisers and Dealers: Exploring the Appropriateness of Introducing a Statutory Best Interest Duty When Advice is Provided to Retail Clients.  The Consultation Paper explores the potential benefits and competing considerations of introducing a statutory fiduciary, or 'best interest', standard for advisers and dealers when they provide advice to retail clients.

"The application of such a standard has been the subject of much debate in Canada and internationally, and requires careful consideration to determine the right solution for the Canadian context," said Bill Rice, Chair of the CSA and Chair and CEO of the Alberta Securities Commission. "Today's Consultation Paper demonstrates Canadian securities regulators' commitment in examining opportunities to improve the relationship between clients and their advisers and dealers in order to ensure effective protection for Canadian investors."

The Consultation Paper looks at it from a number of perspectives and examines whether a statutory best interest standard should be adopted, whether another policy solution would be more effective or whether the current Canadian standard of conduct framework is adequate.

The CSA welcome feedback from investors and market participants on the Consultation Paper. All comments will be reviewed carefully and will inform the CSA's decision and next steps. The Consultation Paper can be found on CSA members' websites.  The comment period is open until February 22, 2013.

The CSA, the council of the securities regulators of Canada's provinces and territories, coordinates and harmonizes regulation for the Canadian capital markets.

SOURCE: Canadian Securities Administrators

For further information:

Carolyn Shaw-Rimmington
Ontario Securities Commission
416-593-2361

Mark Dickey
Alberta Securities Commission
403-297-4481

Sylvain Théberge
Autorité des marchés financiers
514-940-2176 

Richard Gilhooley
British Columbia Securities Commission
604-899-6713 

Ainsley Cunningham
Manitoba Securities Commission
204-945-4733

Wendy Connors-Beckett
New Brunswick Securities Commission
506-643-7745

Tanya Wiltshire
Nova Scotia Securities Commission
902-424-8586

Dean Murrison 
Saskatchewan Financial and Consumer Affairs Authority
306-787-5879

Janice Callbeck
PEI Securities Office
Office of the Attorney General
902-368-6288

Doug Connolly
Financial Services Regulation Div.
Newfoundland and Labrador
709-729-2594

Helena Hrubesova
Office of Yukon Superintendent of Securities
867-667-5466

Louis Arki
Nunavut Securities Office
867-975-6587

Donn MacDougall
Northwest Territories Securities Office
867-920-8984