The Globe and Mail reports in its Wednesday edition that Ontario's Finance Minister is calling on the province's securities watchdog to review a move by several of Canada's largest banks to stop the sale of third party investment products by their financial planning divisions. The Globe's Clare O'Hara and Greg McArthur write that in a letter to the Ontario Securities Commission, Peter Bethlenfalvy said he has "concerns" about some of Ontario's largest financial institutions halting or "unduly" restricting sales of third party investment funds. "It appears that these actions would result in a narrowing of investment products offered to investors," Mr. Bethlenfalvy wrote. "This practice would run counter to the underlying intent of the [client-focused reforms], which is to mitigate conflicts of interest and ensure that investors have access to the products that best serve their needs." The minister wants the OSC to report back with findings and recommendations by Feb. 28, 2022. Earlier this year, Royal Bank of Canada, Toronto-Dominion Bank and Canadian Imperial Bank of Commerce notified clients in their financial planning businesses that advisers will no longer sell third party funds for any investment portfolios.
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