At the top of Jensen’s list is the Canada-wide effort to update the rules for financial advisers and people selling financial products to the public
to the top job in February 2016, where she continues her cam- paign to protect investors. It’s a time of transition at the OSC and one of rapid change in
the globalized capital markets business, so her agenda is packed. “There’s lots to talk about,” she says, settling down for an interview at OSC headquarters in downtown Toronto. At the top of her list is the Canada-wide effort to update the
rules for financial advisers and people selling financial products to the public, which involves moving from a “suitable products” to a “best interest” standard. The distinction is less subtle than it sounds, and is poised to change the way these products are sold. “This is a really important one, which is about elevating the
standards to what works for clients,” she says of the initiative, which is being pushed forward in conjunction with the Canadian Securities Administrators (CSA), an umbrella group for regulators across the country. It’s a two-pronged effort. First, it will involve an itemized list
of what advisers are expected to do to meet the standard of working in clients’ best interests. The second part involves removing so-called embedded fees in products such as mutual funds, so that clients can be sure they are not being sold invest- ments simply because they provide higher fees to advisers. “What we are seeing from the research is that funds that pay
the higher commissions are the ones that get sold to clients regardless of whether they are in their best interests,” Jensen says. The initiative also looks at other conflicts of interest, such as top-selling advisers being sent on junkets and receiving other perks. “This really challenges business models on the street,” she
says, adding that she’s already getting pushback from the industry. The OSC’s whistleblower program, introduced last year and
modelled on the Securities and Exchange Commission’s program in the US, is another bold initiative she champions. The program, which offers up to $5 million for tips that lead to enforcement action, has drawn criticism for being “un-Cana- dian,” she says. “A lot of people say we shouldn’t pay for this because people should just come forward because they see something terrible occur.” But she sees the money as compensation for whistleblowers,
who take big risks by reporting wrongdoing within their organi- zations. Many lose their jobs and are blackballed in their indus- tries, and can use the money to start a new life. So far, the program is working. “We do have some very credible tips and we’re working on them,” Jensen says. Her strong convictions are said to make her eminently
32 | CPA MAGAZINE | MARCH 2017
equipped to deal with grumbling and pushback from the busi- ness world, however loud and fierce it becomes, and from what- ever direction. And her reputation as a seasoned regulator with industry experience and a strong backbone gives her the needed credibility to see that regulations evolve to keep up with the pace of change. “She’s very, very tough,” says Jeff Kehoe, a lawyer who worked
at IIROC with Jensen, and was hired by her last year as director of the enforcement branch at the OSC. “She believes it is important to move forward and to do the right thing.” But at the same time, he adds, Jensen has a reputation for lis-
tening carefully and weighing different points of view before making decisions. These are good leadership traits to have in a country as sprawling and diverse as Canada, where negotiation and compromise are needed to make things happen. And vision. It also takes vision to keep the long view in mind when things don’t move as fast as she might like. Take the federal government’s effort to streamline securities
laws so that Canadian companies are not subjected to different rules and reporting requirements in each province or territory they operate in. It’s an idea that has been discussed in Canada for decades, but the Constitution has been interpreted to give provinces jurisdiction over securities law and so they can’t be forced to join a national body. Jensen, who still remembers the pain caused by the conflict-
ing mishmash of jurisdictional rules way back at Noble Peak Resources, strongly supports the cause. The OSC is one of six provincial or territorial jurisdictions that will be subsumed into the Capital Markets Regulatory Authority (CMRA), expected to launch in 2018. The others are British Columbia, Saskatchewan, New Brunswick, PEI and the Yukon. The CMRA will mean participating jurisdictions will have a
uniform set of regulations, as well as streamlined enforcement procedures, seamless interaction between participants and coordinated policy development. The federal government, for its part, will also join the CMRA, which will take on responsibil- ity for capital matters falling under federal jurisdiction. Jensen hopes others will come on board when they see the
benefits of a more streamlined system. “I’m really looking forward to working with Maureen on this
project,” says Kevan Cowan, former head of markets and equi- ties at TMX Group, who worked with Jensen years ago at the TSX. “She’s dedicated, smart, decisive and a great partner to work with. She’s a person of tremendous integrity and really believes in the integrity of markets.” Cowan was tapped last year to manage the transition as CEO
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