New financial regulations are rarely introduced without some customary eye-rolling by industry associations. However, the reaction of Quebec’s leading association of independent advisors might be setting a new standard for industry backlash.
By Kate Kingsbury
New financial regulations are rarely introduced without some customary eye-rolling by industry associations. However, the reaction of Quebec’s leading association of independent advisors might be setting a new standard for industry backlash.
The Professional Association of Financial Services Advisors (PAFSA) says it will continue to fight the full implementation of CRM2.
Spokesman Flavio Vani: "I am disgusted with the new regulations, we were never consulted, the regulators crushed us like a steamroller. We are currently investigating how to stop CRM2. We want politicians and regulators to join us at a round table to discuss the impact on advisors and on customers."
The Quebec argument is similar to that from embedded commission advisors across the country, with PAFSA suggesting CRM2 will jeopardize the activities of independent financial advisors.
"Look at what happened in Australia and England,” Vani told gestionnairedefortune.ca, the French-language sister publication of WP. About “25-30% of advisors were forced out of business, plus prices to obtain financial advice increased, hence less well-to-do customers suffered."
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The association hasn’t been bashful in expressing its misgivings about the full implementation of CRM2 coming next year and set to transform the province’s current landscape.
"In order to eat steak, you must have teeth," states a PAFSA's press release on CRM2, implying that advisors will have nothing to chew with should the regulations move ahead unchanged. PAFSA, based in Quebec, defines its mission as defending the interests of independent advisors.
While CRM2 calls for advisors to provide full disclosure of all commissions, trailing commissions and fees generated, Vani believes that it will tie the hands of financial advisors.
“We shouldn't be forced to disclose anything, we are the only ones being compelled to do so,” he said. “These rules should apply to everyone. This approach is totally unfair since numerous financial institutions wouldn't have to disclose this information, furthermore their employees are often paid fixed salaries not to mention bonuses.”
New financial regulations are rarely introduced without some customary eye-rolling by industry associations. However, the reaction of Quebec’s leading association of independent advisors might be setting a new standard for industry backlash.
The Professional Association of Financial Services Advisors (PAFSA) says it will continue to fight the full implementation of CRM2.
Spokesman Flavio Vani: "I am disgusted with the new regulations, we were never consulted, the regulators crushed us like a steamroller. We are currently investigating how to stop CRM2. We want politicians and regulators to join us at a round table to discuss the impact on advisors and on customers."
The Quebec argument is similar to that from embedded commission advisors across the country, with PAFSA suggesting CRM2 will jeopardize the activities of independent financial advisors.
"Look at what happened in Australia and England,” Vani told gestionnairedefortune.ca, the French-language sister publication of WP. About “25-30% of advisors were forced out of business, plus prices to obtain financial advice increased, hence less well-to-do customers suffered."
#pb#
The association hasn’t been bashful in expressing its misgivings about the full implementation of CRM2 coming next year and set to transform the province’s current landscape.
"In order to eat steak, you must have teeth," states a PAFSA's press release on CRM2, implying that advisors will have nothing to chew with should the regulations move ahead unchanged. PAFSA, based in Quebec, defines its mission as defending the interests of independent advisors.
While CRM2 calls for advisors to provide full disclosure of all commissions, trailing commissions and fees generated, Vani believes that it will tie the hands of financial advisors.
“We shouldn't be forced to disclose anything, we are the only ones being compelled to do so,” he said. “These rules should apply to everyone. This approach is totally unfair since numerous financial institutions wouldn't have to disclose this information, furthermore their employees are often paid fixed salaries not to mention bonuses.”
