May 25, 2017
There have been numerous developments in the Canadian securities regulatory landscape, including new OSC priorities and a derivatives policy proposal from the CSA. In an article on the subject, Advisor.ca sought the insight of Torys lawyers John Fabello and Simon Williams.
The OSC released its draft of priorities for 2017-2018, the first being to “publish regulatory reforms to define a best interest standard,” followed by a focus to “define regulatory actions to address embedded commissions.” Partner and securities litigation expert John Fabello commented on these priorities, saying, “a new standard to act in the client’s best interest is inevitable.” Fabello further discussed the need for registrants to concentrate on and engage with the “limitations and parameters” of the best interest standard in order to move forward.
Derivatives and structured finance and securitizations expert Simon Williams discussed the CSA’s proposed National Instrument 93-101 Derivatives: Business Conduct and companion policy, noting the differences between this new proposal for derivatives registrants and the existing policy in place for securities registrants. Below is an excerpt from the article.
Simon Williams, a senior associate at Torys in Toronto, notes the “higher level of disclosure” required to clients, such as reporting daily valuations of trades, as well as reporting monthly transactions.
He highlights the proposal’s restrictions on tied selling and fair terms and pricing. “It’s timely,” he says, noting the headlines about aggressive sales tactics at banks.
To read the full article, click here.