This past month CBC Go Public has put a spotlight on the issue of how, all too often, Canadians are getting poor, conflict ridden advice that is not in their best interests.
Last night the National highlighted this issue once more, showing how much high fee mutual funds are costing Canadians in terms of a much smaller nest egg than they would otherwise have. FAIR Canada's Chair, Ermanno Pascutto, explains how Canadians are spending a lot more on fees
and commissions than they should be. A best interest standard will allow Canadians to receive objective professional financial advice and services that Canadians expect and deserve.
Ensuring that consumers are protected in their dealings with firms and their financial "advisors" and financial "planners" is absolutely crucial, not just for consumers themselves but for the integrity of our capital markets. A statutory best interest duty is the cornerstone of such protection and must be next on the list of reforms for consumer protection in this country.
We urge all securities regulators to proceed expeditiously to implement a statutory best interest duty.
