Opinion: Smarter Supervision is the Path Forward
A recent report by the C.D. Howe Institute suggests that reducing regulation could help advisors serve mass market clients by streamlining oversight and eliminating unnecessary rules.
However, the real issue is not excessive regulation, but rather inefficient regulation. The solution lies in rebuilding how regulations are enforced, rather than abandoning them altogether.
Regulations exist to deter misconduct, reduce information asymmetries and preserve trust.
Supervisory technology (suptech) offers a promising approach to improve consumer protection while reducing costs and eliminating duplication. Canada should be embracing this future, rather than retreating into deregulation.
Conclusion
Smarter supervision, not less regulation, is the key to moving forward.
Author's summary: Smarter supervision is the path forward, not less regulation.