Opinion: Smarter Supervision, Not Less Regulation
The path forward is not about reducing regulation, but rather implementing smarter supervision. A recent report by the C.D. Howe Institute suggests that regulatory burden is pricing modest investors out of financial advice, proposing a solution of culling unnecessary rules and streamlining oversight.
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 to reduce costs, eliminate duplication, and improve consumer protection simultaneously.
Regulations are in place to
- deter misconduct
- reduce information asymmetries
- preserve trust
Canada should be moving towards a future of smarter supervision, rather than retreating into deregulation. Author's summary: Smarter supervision is key to efficient regulation.