It is difficult to imagine how in today’s economy, a firm or registrant can be profitable without offering a more holistic model of financial service to clients: insurance, financial planning, tax preparation, etc. These are more often than not, part of the “big picture” that advisors must offer. Clients want the convenience of one stop shopping. They want knowledge and they want to trust in the advice they receive from a common source on all financial matters.
With increased emphasis by regulators on managing or eliminating conflicts of interest, how do we stay on the right side of compliance? IIROC suggests the starting point is rule 29.1 which requires that dealers and their representatives must observe high standards of ethics and conduct in the transaction of their business and not engage in any business conduct or practice unbecoming or detrimental to the public interest. MFDA rule 2.1.4 requires that material conflicts of interest must be addressed by the exercise of responsible business judgment influenced only by the best interests of the client.
The common thread in all conflict of interest rules is that we put our clients’ interests ahead of our own.
Read entire article:
http://www.advisor.ca/advisors/news/industrynews/article.jsp?content=20100519_101326_1872
Stephanie A. McManus, LL.B.
Advisor.ca
May 19, 2010
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