Michelle Schriver
This article is the second in a series covering the changes taking place this year some on June 30, others on Dec. 31 as the Canadian Securities Administrators’ client-focused reforms are implemented. Read the first story on advisor compensation here.
This week, firms will provide new disclosures to clients about conflicts, including how they address the conflict of offering proprietary products.
The new disclosure statements due Wednesday are part of the client-focused reforms (CFRs). Dealers and advisors must identify and address material conflicts in clients’ best interests, and provide written disclosure to clients.
For firms, addressing the conflict of proprietary products means implementing controls. For example, the CFRs’ companion policy suggests that firms with only proprietary products could ensure their products are competitive by conducting periodic due diligence on comparable non-proprietary products. Firms with mixed shelves could demonst