Seniors group CARP is calling on the Ontario government to reverse its opposition to a regulatory proposal to ban deferred sales charges (DSCs).
In a letter to Ontario Finance Minister Vic Fideli, CARP says the reforms as now proposed would allow seniors to age with significantly improved financial security. “Financially secure seniors do not require assistance through social welfare programs; these reforms not only make seniors safer, they save the government money,” states the CARP letter.
On Sept. 13, Fideli said his government did not agree with the Canadian Securities Administrators’ proposed amendments to ban DSCs, and will work with other provinces and territories and stakeholders “to explore other potential alternatives.”
But CARP says the proposed DSC ban has already been given many years of consultation.
“We urge you to reconsider your recently announced opposition to these needed reforms, which were developed with six years of consultation with stakeholders, the financial sector, regulators and investor advocates. They represent an important first step in increasing investor and consumer protection, while improving market efficiency.”
CARP characterizes DSCs as locked-in arrangements with extraordinarily high commission fees.
However, a number of financial organizations praised Fideli’s move, including Advocis, the Financial Advisors Association of Canada, and the Independent Financial Brokers of Canada.
In a statement, Advocis said 80 per cent of Canadian households have less than $100,000 in total investible assets and that restricting access to professional financial advice would make it harder for the public to save, invest and achieve their financial goals.