Letter: It’s about more than access to training

I read with interest your June 30 article regarding the closure of the Securities and Investment Management Association’s IFSE Institute. In my view, this news deserves to be placed within a much broader context, particularly in light of the ongoing consultations by the Canadian Investment Regulatory Organization (CIRO) as part of its Rule Consolidation Project (Phases 4 and 5).

The issue goes far beyond access to training. It also concerns the quality and structure of basic education for mutual fund representatives across Canada. Quebec, notably, has recently moved toward a national approach by officially joining CIRO on July 4 — a significant development that, surprisingly, received little attention.

Your journalist rightly highlighted concerns about awarding the mandate to an American firm, especially given the current political climate. The exclusive nature of this mandate is also a legitimate concern. These issues are indeed worth exploring.

That said, other equally important aspects were left unaddressed. For instance, Ms. Elsa Renzella, senior vice-president of compliance at CIRO, is quoted as saying that competency standards are not her responsibility. Such a statement — from a regulatory body tasked with certification — raises serious questions. This, in my view, is newsworthy in itself and deserves further scrutiny.

Moreover, the issue of exclusivity deserves a closer look. There are several capable firms in Canada with the experience and resources to deliver quality training and examination services. Yet the article mentions only one provider, who claims the Canadian market is too small to support multiple players. With tens of thousands of representatives across the country, this claim is both questionable and dismissive of Canada’s own capacity to develop and manage professional standards. Quebec’s AMF and Canada’s OCRA have demonstrated that rigorous, localized evaluation of training providers and accreditation of training courses is not only feasible, but already in practice.

Finally, the article overlooks some serious compliance issues highlighted by various sources, including the CBC in 2024 and, more recently, the Ontario Securities Commission. Concerns around the competence and ethics of representatives are central to investor protection. These challenges echo those raised decades ago by Gloriane Stromberg and remain just as relevant today.

Thank you for your work and reporting on this topic. I encourage you to explore these broader issues, which are essential for both public and professionals understanding and for maintaining trust in our financial system.