ADVOCIS NEWS

AdvocisNews

A S S O C I A T I O N U P D A T E S A N D E V E N T S

CHAPTER NEWS Calgary Event –“Lean In and Help Shape the Future of our Industry

Advocis Calgary hosted one of the first live events in more than two years with national leadership in attendance at Lean In and Help Shape the Future of Our Industry. Held on March 22, the event was well attended by Advocis members from across Alberta and featured hosting by Wade Baldwin, as well as presentations by TFAAC board chair Rob Eby, Calgary Chapter president Jayshri Patel-Amin, and many more.

The Advocis Chapter Leadership Council hosted its annual Western Regional Meeting in Calgary. Among chapter-building activities, volunteer leaders participated in a workshop led by past chair and longtime volunteer Izumi Miki McGruer. Attendees left with a better understanding of how they can support their individual chapters, and are looking forward to future collaborations with one another.

Will Britton, CLC Chair; Heather MacDonnell, director of chapter relations;

Julie Martini, vice-president, strategic engagement; and panel moderator,

Rob Eby, Advocis chair.

LEGAL AND REGULATORY AFFAIRS UPDATE Insurance Regulators Move to Ban DSCs in Segregated Funds

On February 10, the Canadian Council of InsuranceRegulators(CCIR)andtheCanadian Insurance Services Regulatory Organizations (CISRO) announced their intention to completely ban the use of deferred sales charges (DSCs) in segregated funds by June 1, 2023. In the joint statement they also encouraged the industry to refrain from using DSCs by June 1, 2022. This latter date would align with the ban on DSCs for mutual funds set out by the Canadian Securities Administrators (CSA).

In making their decision, CCIR/CISRO seem to be leaning heavily on the work done by the CSA over the past decade. In 2018, the CSA concluded that DSCs create a serious conflict of interest between clients and advisors: the CSA found that the allure of upfront compensation incentivizes advisors to recommend DSCs when they are not in the best interest of their clients. The redemption schedule characteristic of DSCs also deters the ability of investors to sell poorly performing funds, with restricted fund flows strongly correlated to poor investor outcomes in the CSA’ s research.

Insurance regulators believe that DSCs in segregated funds represent similar consumer protection issues. While we believe these issues merit investigation, we are concerned that CCIR/CISRO did not undertake an analysis of DSCs specifically in the context of segregated funds. Segregated funds share similarities to mutual funds, but there are also important distinctions related to their use as an insurance product and the duration that consumers typically hold the product. These distinctions will be important as the CCIR/CISRO have announced their intention to study other segregated fund compensation options, such as front-end loads and chargeback options, this fall.

For International Women ’ s Day, Advocis South Saskatchewan hosted The Business of Leadership — Celebrating International Women ’ s Day! Sandra Masters (above right) who made history by becoming the first woman elected to mayor in Regina ’ s history, spoke alongside special guest Caron Czorny, president of Advocis Simcoe Muskoka.

Advocis Toronto hosted its 4th Annual International Women ’ s Day event on March3.The theme for this year ’ s International Women ’ s Day was #BreakTheBias. Attendees came together to support women ’ s equality and help build an inclusive environment. Presenters Kim Siegers-Robinson, Cathy Hiscott, and Noreen Santer discussed how to overcome the common challenges faced by female successors, and they also dove into women ’ s evolving relationship with money.

NOTICE OF ANNUAL GENERAL MEETING OF MEMBERS

The Annual General Meeting (AGM) of Members of The Financial Advisors Association of Canada

carrying on business as Advocis (the Association) will be held exclusively online. Online voting for the 2022 AGM will be available from no later than May 31, 2022.

Items for approval by the membership include: • Minutes of 2021 Annual General Meeting • Appointment ofthe Auditor for the next fiscal period • Election of Directors • Receive the audited financial statements for the financial year ended December 31, 2021 and the Auditor ’ s Report • Any other business

THE AGM of Members of The Institute will also be held exclusively online. Online voting for the 2022 AGM will be available from no later than May 31, 2022. Items for approval by Institute Designation Holders include: • Minutes of 2021 Annual General Meeting • Appointment of the Auditor for the next fiscal period • Receive the audited financial statements for the financial year ended December 31, 2021 and the

Auditor ’ s Report • Any other business

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