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Globe says for OSC, embedded commission talk never ends

2017-09-19 08:08 ET - In the News

See In the News (C-*OSC) Ontario Securities Commission

The Globe and Mail reports in its Tuesday edition that the debate on whether regulators should ban the use of embedded commissions continues to rattle the investment community but the Ontario Securities Commission believes that the status quo is not an option. The Globe's Clare O'Hara writes that during a roundtable Monday, Maureen Jensen, chairman of the OSC, was quick to say that no decision has been made by the Canadian Securities Administrators on pursuing an outright ban on embedded commissions. However, as part of the process, regulators needed to explore a variety of alternatives that may, individually or in combination, address the CSA's concerns and lessen the risk of potential negative consequences a ban could bring. "As regulators, we are very concerned about the conflicts that arise from embedded compensation," Ms. Jensen said during her opening remarks. "At the same time, we have heard compelling comments about unintended consequences, including that an outright ban could result in no access to advice for small investors and reduced competition in the marketplace." The CSA has announced that it has plans to present policy options and recommendations to the industry next spring.

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