Smarter Supervision: The Path Forward
A recent report by the C.D. Howe Institute suggests that reducing regulation could help advisors serve mass market clients. However, this approach may not be the most effective solution.
The real issue lies not in the amount of regulation, but rather in its inefficiency.
Regulations exist to deter misconduct, reduce information asymmetries and preserve trust.
A Better Solution
Supervisory technology (suptech) offers a more promising path forward. By leveraging suptech, costs can be reduced, duplication eliminated, and consumer protection improved simultaneously.
Conclusion
Canada should focus on implementing smarter supervision, rather than abandoning regulatory guardrails. This approach will ultimately lead to a more efficient and effective regulatory framework.
Author's summary: Smarter supervision is key to effective regulation.
- Regulations deter misconduct and preserve trust
- Supervisory technology can reduce costs and improve consumer protection
- Smarter supervision is the path forward, not less regulation