The Portfolio Management Association of Canada (PMAC) says that the Canadian Securities Administrators’ (CSA) proposals for a best interest standard do not offer investors any more protection, and would end up creating confusion. PMAC represents more than 230 firms which, when combined, have about $1.5 trillion of assets under management. While the association supports the CSA’s recommendation to introduce a harmonized, statutory fiduciary duty for all investment accounts that are managed on a discretionary basis, it argues in its recent submission to the CSA that a best interest standard would be superfluous. “The proposed regulatory best interest standard is not as high a standard as the fiduciary duty and is therefore unnecessary,” reads the document.
ANDREW RICKARD – INSURANCE & INVESTMENT JOURNAL – SEPTEMBER 28, 2016.