The Globe and Mail reports in its Wednesday, July 9, edition that a review of Canada's Big Five banks found that mutual fund advisers face pressure to meet sales targets, potentially leading to offerings that are not in clients' best interests. The Globe's Clare O'Hara writes that on Wednesday, the Ontario Securities Commission and the Canadian Investment Regulatory Organization reported some positive findings regarding the sales culture at Canadian banks but identified several concerns. The survey examined sales pressures, product availability, advisers' knowledge and bank compensation models. The OSC and CIRO found that 24 per cent of mutual fund sellers said clients are sometimes recommended products not in their interests, while 33 per cent reported clients receive incorrect information about those products. OSC chief executive Grant Vingoe said: "While it's clear many bank representatives are prioritizing quality advice, it is also clear that sales pressures and incentivization may be driving concerning behaviours. The focus of the bank representatives should be the best interests of their customers and clients -- not feeling heightened pressures to meet sales targets."
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