SOURCE: Advocis

Advocis

April 04, 2016 14:23 ET

A Commission Ban Is Not the Answer

New Canadian Academic Research Aligns With the Advocis Position

TORONTO, ON--(Marketwired - April 04, 2016) - Advocis is pleased to see that new independent Canadian research from the University of Calgary's School of Public Policy supports its long-standing message that banning commissions will restrict access to financial advice for those who need it most.

Released on April 1, the 38-page academic paper, A Major Setback For Retirement Savings: Changing How Financial Advisers Are Compensated Could Hurt Less-Than-Wealthy Investors Most (http://www.policyschool.ucalgary.ca/?q=content/major-setback-retirement-savings-changing-how-financial-advisers-are-compensated-could-hurt-), asserts that the banning of third-party embedded compensation on the sale of financial products would constitute "a massive set-back for individual wealth accumulation and, ultimately, for the economy."

"Mr. Pierre Lortie's research strongly aligns with the association's call to raise the bar for financial advisors through higher education standards and the creation of a profession. It also emphasizes the importance of preserving choice in how investors pay for financial advice," says Greg Pollock, president and CEO, Advocis. "We encourage regulators and policymakers to consider this study when making a decision that could unintentionally prevent thousands of Canadians from accessing the professional advice they need to prepare for retirement."

The study notes that instead of banning commissions and creating an advice gap, a more effective solution to the problem of potential conflicts of interest is to enhance the proficiency and professionalism of financial advisers. The paper recommends a stronger emphasis on standards, continuing education programs and other means to improve the competencies and proficiency of financial advisors and increase professionalism -- a position Advocis has maintained for several years.

About Advocis

Advocis, The Financial Advisors Association of Canada, is the association of choice for financial advisors and planners. With more than 11,000 members in 40 chapters across the country, Advocis is the definitive voice of the profession, advocating for professionalism and consumer protection. Advocis works with decision-makers and the public, stressing the value of financial advice and working toward an environment in which all Canadians have access to the advice they need. Follow us on Twitter @advocis or visit www.advocis.ca (http://globenewswire.com/Tracker?data=idWf2YvTtwHiFLSnMhFhkyInLkyYdS_SfGuQqqbnHQ4O6sVtVx3fTGhq0D_rHdOM).

Contact Information

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