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“We believe to raise the bar… it’s really by putting in force the package of targeted reforms” proposed last year, which aim to reduce conflicts of interest, govern the use of titles, and beef up an advisor’s knowledge about clients and financial products, he said.

“They will offer much more practical, meaningful, and effective ways to raise those standards.”

All the provinces under the umbrella of the CSA agree on the targeted reforms, while the best interest standard — now endorsed only by regulators in Ontario and New Brunswick — would “create confusion” as well as “legal and regulatory uncertainty,” Morriset said.

“Very valid” concerns were raised during consultations that began last year, he said, including that it would be difficult to measure and assess whether a “best interest” standard had been met, and therefore tough for regulators to ensure compliance with such an “aspirational” standard.

In practice, Morisset said, a best interest standard could also let existing conflicts go unchecked because unique industry circumstances — such as dealers that sell only proprietary products — would make a uniform standard impractical.

“You have to be very careful here in trying to craft a standard that will not be workable in the Canadian environment,” he said. “Or if it becomes workable, it will be workable because of many safe harbors that have to be added, or will have to be created, to make people understand the limits of such a standard.”