- Why eliminate a bulwark of protection for the public?
Financial service advisors have great responsibilities towards their clients. The CSF constitutes the first line of protection for Quebec investors as it oversees ongoing training, ensures compliance with its code of conduct, and administers disciplinary measures when necessary.
- Who benefits from the new provisions?
Since the publication of the Report on the Application of the Act Respecting the Distribution of Financial Products and Services (ARDFPS) in June 2015, certain financial lobby groups have taken strong positions in favour of the abolishment of the CSF, claiming that it was costing them too much to maintain this consumer protection organization.
In his report reviewing the Act published in 2015, Minister Leitão himself stated that compared to legislation in other Canadian provinces, the ARDFPS is unique in that it imposes an oversight framework on financial sector representatives, based on the professional order model, with chambers that assume the responsibility for ensuring compliance with rules of professional conduct and those relative to ongoing training.
- Conflict of interest and concentration of powers
When the AMF was created in 2004, all parties concerned unanimously agreed that certain powers be delegated to self-regulatory organizations such as the CSF to avoid conflicts of interest and the concentration of powers within a single body. Over the course of 13 years, has the context changed to the point where this principle is no longer valid in 2017?
- Why fix what isn’t broken?
Our financial system works very well. The CSF’s professional order model has proven itself and sets us apart from the rest of Canada. Why change everything?
The one-stop-shop argument doesn’t hold water. Why would advisors licensed under the Investment Industry Regulatory Organization of Canada (IIROC) continue to be regulated by a professional organization while current CSF members would no longer be? We would witness the creation of two classes of advisors.
Is there confusion between the mandates of the CSF and the AMF? No, none. Their respective roles are clearly defined.
- When will meaningful consultations take place?
The question of the elimination of the Chambre along with the concerns of the public and of advisors have not been taken into account, given that the latter were never consulted.
Quebecers deserve to know the facts about issues that could directly impact their financial health. Legislation that risks causing upheaval in many sectors of Quebec’s economy should be subject to consultation, studies and consensus building with ALL concerned parties at the table—including the CSF’s 32,000 advisors and the province’s consumers.