Laura Paglia comments on fiduciary obligation in Investment Executive

No Need to Adopt Fiduciary Duty, Compliance Officers Hear

May 07, 2013

Partner Laura Paglia was featured in a recent Investment Executive article, offering comment on how law manages the responsibility of investment advisors and the relationship between advisors and investors. Below is an excerpt of the article.

"We have had common law evolving with respect to what is a fiduciary obligation for years and in that evolution it has always been clear and consistent," said Laura Paglia, partner, Torys LLP.

Currently, the Investment Industry Regulatory Organization of Canada (IIROC) already has a rule, said Paglia, which states that advisors have an obligation to know their clients and understand their personal and financial circumstances and to act in their best interest. Moving from this established standard to a fiduciary duty is troublesome, she said, because it suggests that clients are vulnerable and completely dependent on advisors for advice, yet the fact is that people trust and rely on their advisors to different degrees and the legal analysis should reflect that.

Paglia provided her comments as a panelist at the Association of Canadian Compliance Professionals’ Compliance Forum that was held May 6, 2013.

To read the full article, click here.

For more information about the ACCP’s Compliance Forum, click here.

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