March 28, 2010
Imposing a fiduciary standard on financial advisors wouldn't necessarily lead to greater investor protection or stronger enforcement practises in Canada, according to legal experts.
At a Toronto conference that explored the advisor-client relationship, hosted by FAIR Canada and the Hennick Centre for Business and Law, a panel of lawyers discussed the regulatory impacts of a fiduciary standard on financial advisors.
Laura Paglia pointed out that in theory, imposing a fiduciary standard could lead to higher damages for victims, since they would be entitled to restitution. However, cases in recent years show that victims in Canada already receive this level of damages despite the lack of a fiduciary standard.
"They were otherwise restituted without needing to go to a fiduciary standard," Laura said.
Read the full article here.