More than a fifth of affluent millennial clients say they expect to leave their current advisory firms within the next 12 months, a J.D. Power survey shows. And, for many clients, fee transparency will be a primary reason for leaving. The survey found that, while advisors risk losing clients by not adequately disclosing fees, milliennials […]
This week, the U.S. SEC announced two whistleblower awards
The Canadian Securities Administrators has issued final amendments to the registration rules for firms. The amendments are to National Instrument 31-103: Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103), and National Instrument 33-109: Registration Information. The changes enhance custody requirements for some registered firms, clarify activities that may be conducted by exempt market dealers, […]
The securities regulators of Ontario, Québec, Alberta, Manitoba and New Brunswick have published CSA Multilateral Staff Notice 61-302: Staff Review and Commentary on Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions. The notice deals with how to approach conflict of interest transactions, including insider bids, issuer bids, business combinations and related party […]
The North American Securities Administrators Association is seeking public comment on a proposed amendment to its model rule on unethical business practices of investment advisors. The proposal is aimed at U.S. advisers who access client accounts with the client’s own unique identifying information — such as a username and password — as opposed to using […]
Provincial securities regulators in Alberta, Manitoba and New Brunswick have given notice to move ahead with regulations to address conflicts of interest for insiders and related parties. On Thursday the provinces’ securities regulators issued a notice of adoption of Multilateral Instrument 61-101: Protection of Minority Security Holders in Special Transactions (MI 61-101)—which is already in […]
For those who don't, the consequences could be dire
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If your client has an account at a credit union, she might have to get used to some new terminology. That’s because the Office of the Superintendent of Financial Institutions (OSFI) is cracking down on who gets to use the words “bank,” “banker” and “banking.” The crackdown is part of Advisory 2017-01, which OSFI issued […]
01 IIROC compensation review In April, IIROC published guidance on managing compensation-related conflicts after reviewing 20 firms. The review identified three concerns: disclosure gaps, a lack of oversight of compensation grids and policies, and a shift to fee-based accounts without supervision or risk monitoring. The guidance, along with CSA’s proposal on banning embedded commissions, indicates […]