A former adviser in the UK is offering an expert timeline on when the next crucial regulatory change will hit Canada.
Andrew Teasdale recently published a damning review of the Brondesbury Report, the first of two commissioned reports from the CSA. His observations make it abundantly clear that any move to fix what ails the financial services industry is years away from any kind of solution.
“If I was an advisor and I was looking at this report, I would say that there’s nothing in it that people did not know before,” Teasdale told WP. “In fact if you look at a lot of the biases in the report it’s actually saying, ‘Yah, commission does cost you but if you add all the other costs from getting away from it you’re probably in a similar situation… possibly.’”
Teasdale is quick to remind WP that regulatory changes whether in Canada or the UK take an extraordinary amount of time. The entire system needs to completely restructured and unified. Given the UK took six years to introduce RDR, he believes it could take 15 to 20 years to do what’s already happened in other countries. Any real change is very far away with the Brondesbury Report indicative of just how unrealistic the regulators truly are.
“I would put our regulation of retail financial services on par with Greece in terms of not getting a handle on things,” said Teasdale. “They’ve been diddling too long and time has passed.”
In his mind like many other investor advocates, the solution begins with a best interests’ framework being implemented in order for any changes to fees, compensation models, etc., to matter. It is the only way regulators can deliver a healthier financial services industry for both consumers and advisors alike.
For advisors worried about their future he doesn’t believe they have anything to worry about.
“I would not be too concerned about the report. In fact, I would not be criticizing it at all. I would be keeping quiet,” Teasdale said.
“If I was an advisor and I was looking at this report, I would say that there’s nothing in it that people did not know before,” Teasdale told WP. “In fact if you look at a lot of the biases in the report it’s actually saying, ‘Yah, commission does cost you but if you add all the other costs from getting away from it you’re probably in a similar situation… possibly.’”
Teasdale is quick to remind WP that regulatory changes whether in Canada or the UK take an extraordinary amount of time. The entire system needs to completely restructured and unified. Given the UK took six years to introduce RDR, he believes it could take 15 to 20 years to do what’s already happened in other countries. Any real change is very far away with the Brondesbury Report indicative of just how unrealistic the regulators truly are.
“I would put our regulation of retail financial services on par with Greece in terms of not getting a handle on things,” said Teasdale. “They’ve been diddling too long and time has passed.”
In his mind like many other investor advocates, the solution begins with a best interests’ framework being implemented in order for any changes to fees, compensation models, etc., to matter. It is the only way regulators can deliver a healthier financial services industry for both consumers and advisors alike.
For advisors worried about their future he doesn’t believe they have anything to worry about.
“I would not be too concerned about the report. In fact, I would not be criticizing it at all. I would be keeping quiet,” Teasdale said.
