To All RDBA Members:
As you are no doubt aware, regulators are continuing to review compensation in the financial industry and more specifically are now considering eliminating the embedded commissions received by advisors and independent brokers. These embedded commissions specifically include the ‘trailer’ or ‘servicing’ fees advisors receive on an annual basis to help clients with their review and planning of their investment portfolios. Although the embedded commissions they seem to be targeting are related specifically to investment funds, it is a very small step to include in this list the ‘embedded’ commissions received by insurance agents and deposit brokers.
We believe that it is very important that we stand with all of our colleagues in the financial industry to oppose an unnecessary regulation change that will inevitably remove choice for consumers. There will be significant pressure placed on the profitability and viability of the independent financial brokers like us.
The consultation papers seem to suggest that consumers are the ones driving this change…yet in my discussion with clients, I have yet to find one who wants to support this move.
The RDBA is participating in two opportunities to send our message strong and clear to politicians and regulators. One is a survey developed by our friends at IFB who are gathering information to support their submission for the review process of this consultation paper. Please complete as soon as you are able.
Secondly, we are sending you a link to the ADVOCIS site at which you and your clients can “Take Action” and let their voice be heard. It is imperative that we send a clear message that our industry provides an important service to Canadians all across the country. ADVOCIS has provided this on their site and have suggested that the link be added to your own site and/or in an email to your clients. We need everyone to participate!
Link to IFB Advisor Compensation Survey: https://www.surveymonkey.com/r/8FLM89Q
Link to ADVOCIS Take Action Site: http://www.financialadviceforall.com/#action1
WILL YOU PLEASE HELP US.
Brian Evans CFP, RDB, CFC
Chair the RDBA Board of Directors