ASC to explore reforms to embedded commissions

first_imgOSC announces key details for embedded commissions roundtable Facebook LinkedIn Twitter IIROC fines Worldsource $100,000 Share this article and your comments with peers on social media Related news Trailer ban comes with industry rebuke The ASC will host a session in Calgary on Oct. 23, and in Edmonton on Oct. 24, to consider issues raised in a consultation paper published back in January, which proposes banning embedded commissions and requiring firms to charge investors directly instead. “These sessions are being held as part of our ongoing consultation process on this matter,” the ASC says its announcement. Next week, the British Columbia Securities Commission will also host an open meeting on the subject. It’s not yet clear what type of action regulators will take to address the investor protection concerns posed by embedded compensation models, which create conflicts of interest, limit investors’ bargaining power, and may distort the market for advice. Recently, the Ontario Securities Commission (OSC) held a roundtable session in Toronto to examine possible alternatives to banning trailer fees, and other forms of embedded compensation. While the industry is pushing back against a ban, Maureen Jensen, OSC chairwoman and CEO, told the roundtable audience that “the status quo is not an option.” The OSC has indicated that it hopes to reach a policy decision by the spring of 2018. Read: Debate on trailer fees heats up Photo copyright: enki/123RF The Alberta Securities Commission (ASC) on Friday announced plans for a pair of meetings later in the month on proposed reforms to discontinue embedded commissions. Regulators celebrate World Investor Week and Investor Education Month Keywords Embedded commissionsCompanies Alberta Securities Commission James Langton last_img read more

Read More →