PMAC supports fiduciary duty for advisors

CSA continues to address the issue of a fiduciary duty for advisors, and the Portfolio Management Association of Canada (PMAC) is weighing in.

Read: Disclosure is broken: CSA best interest roundtable

“Portfolio managers already owe a fiduciary duty under common law and under statutory provisions of certain provinces,” says the association at its AGM. “PMAC fully supports implementing a harmonized statutory fiduciary duty across all jurisdictions in Canada that applies equally to advisors and dealers who are providing investment advice.”

Read: Financial firms must value client privacy

PMAC also notes:

• Given the implications of this policy change, PMAC recommends more research and analysis and monitoring of international developments to determine its impact on all Canadian registrants.
• If the CSA does not implement a statutory fiduciary duty, it should streamline professional/registration titles and corresponding designations. This change will clarify which investment professionals operate under a fiduciary duty when providing investment advice to ensure this responsibility is properly understood by investors.

Read: Compliance roundup: November 2013

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The staff of Advisor.ca have been covering news for financial advisors since 1998.