27 July 2017 14:53
TheSchool of public policy at the University of Calgary published Thursday, July 27, a report of Henri-Paul Rousseau , who considers that the prohibition of sales commissions incorporated could have serious impacts on Canadians ‘ access to financial advice.
«A ban on sales commissions built-in would mean less choice on the market, for a service that must be competitive and innovative to meet the wide range of circumstances, appetites and needs related to the risks. In addition, producers and distributors of products more small and independent could disappear, creating a market concentration in the hands of the biggest players in the financial advisory, » warns Henri-Paul Rousseau, vice-president of Power Corporation of Canada and Power Financial Corporation, and former CEO of the Caisse de dépôt et placement du Québec.
«If the goal is to make financial advice more widely accessible, it is essential that decision-makers give serious thought to all the implications of a ban of commissions integrated «, he says.
New rules are needed
The report also includes recommendations for regulators. Mr. Rousseau argues that rules are needed in particular to increase financial literacy and improve broad access to financial advice, to pursue the ongoing efforts of provincial governments to require standards of competency higher for financial advisors, or, to ensure that policymakers do not lose sight of the need to ensure a better access of all Canadians to a market that is competitive and innovative for distribution of financial products.
Henri-Paul Rousseau to conclude that such access is » a necessary condition for the level of long-term savings and retirement readiness of canadian households «.
For more information, the report can be viewed online (English only).