The C.D. Howe Institute report suggests that reducing regulation could help advisors serve mass market clients by streamlining oversight and eliminating unnecessary rules.
However, the real issue lies not in excessive regulation, but in inefficient regulation. The solution is not to abandon regulatory measures, but to improve their enforcement.
Supervisory technology (suptech) offers a path forward, potentially reducing costs, eliminating duplication, and enhancing consumer protection simultaneously.
Regulations exist to deter misconduct, reduce information asymmetries and preserve trust.
Canada should focus on implementing smarter supervision rather than opting for deregulation.
Author's summary: Smarter supervision is key to efficient regulation.