The verdict is in – after more than a year of consultations, the Best Interest Standard (BIS) is about as popular as Donald Trump at a NATO Summit (and that’s after he shoved the Prime Minister of Montenegro). The CSA has confirmed that to date, only the Ontario Securities Commission (OSC) and New Brunswick’s Financial and Consumer Services Commission (FCNB) are open to proceeding with the BIS.
The CSA released a recent Notice in which it acknowledged that agreement has not been reached across the provinces with respect to the BIS, and stated that common concerns from industry participants include a fear of legal and regulatory uncertainty and a lack of clarity surrounding how the BIS would be applied.
In response to these results, the CSA will focus primarily on its targeted reforms for 2017-2018, including conflicts of interest; suitability; KYC and KYP; relationship disclosure; and titles and designations. As well, the CSA has signaled that proficiency reforms may require a longer-term project and this will form a separate CSA project.
Though the BIS consultations will continue on a “parallel path”, it seems to have taken a back seat at least for now. Stay tuned…