[March 26, 2009] ADVOCIS: Encouraged by budget's red tape reduction; but, consumers will continue to see less return on investments Tweet (Canada Newswire English Via Acquire Media NewsEdge) Attention News Editors TORONTO, March 26 /CNW/ - The Ontario government budget released today has some encouraging elements for advisors and planners, according to Advocis, The Financial Advisors Association of Canada; however, their clients will have to wait longer to see positive returns on their investments. "The Open for Business initiative that commits to reducing red tape by 25% over the next two years is a positive move," said Greg Pollock, president and CEO of Advocis. "However, it would have been better to see some specific reference to the financial services sector. When advisors and planners are not crushed by increasing compliance costs, they are able to afford to stay in business in this province and consumers will continue to have a wide choice in where and how they receive financial advice." Open for Business is consistent with representations made to the government about the regulatory burden for advisors and planners and its impact on their clients. The government's endorsement of the work of the Expert Panel on Securities Regulation, in particular a move to smarter regulation, should go a long way to making these recommendations a much needed reality. Consumers lose with the new proposed harmonized sales tax (HST) as it will now apply to mutual funds, segregated funds and other investment products. This additional tax on management fees will, in the end, reduce investors' net returns. "At a time when consumers' investments have taken a huge hit, consumers don't need any additional cost burdens," Mr. Pollock continued. "Given the present circumstances in the markets, investment funds should have been exempt from an Ontario HST." The government's support for expanded pension coverage for Ontarians is a positive move. Advocis stands prepared to be an active contributor to the work of the Pension Reform Advisory Council. Advocis, The Financial Advisors Association of Canada, is the oldest and largest voluntary membership association of financial advisors and planners in Canada. With more than 10,000 advisors and planners in 43 chapters across Canada, Advocis members provide financial advice, product service and employee benefit planning to millions of Canadians in a number of areas including estate and retirement planning, wealth management, risk management and tax planning. For more information about Advocis, see www.advocis.ca. Ann Walker, at (416) 342-9838 or Brett McDermott at (416) 342-9814 Copyright ? 2009 Canada Newswire Ltd. All Rights Reserved. [ Back To TMCnet.com's Homepage ]