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.
Regulatory burden is pricing modest investors out of financial advice.
However, the real issue lies not in the amount of regulation, but in its inefficiency. The solution is not to abandon regulatory guardrails, but to rebuild how they are enforced. Supervisory technology (suptech) offers a path forward, with the potential to reduce costs, eliminate duplication, and improve consumer protection simultaneously.
Canada should prioritize smarter supervision and the adoption of suptech, rather than retreating into deregulation.
Author's summary: Smarter supervision is key to efficient regulation.