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Will Congress Take the Bite From Financial Regulations?

U.S. legislators are taking a closer look at financial reforms.

An effort by President Barack Obama to increase financial regulations may be curtailed, as The Associated Press reports that the House of Representatives recently voted to scale back the restrictions on some financial tools.

Legislators said if the reforms had been enacted, they would have made firms less effective in investment and price risk management, the news outlet recounts. The House approved a bill that addresses derivative trading, allowing some related companies to sidestep the mandate "that they set aside money to cover possible losses," the source explains, and the second bill would allow end-user companies to enjoy "similar exemptions."

"We should allow American businesses, acting in good faith, to effectively manage risk," said Rep. Marcia Fudge, D-Ohio, as quoted by the AP.

In Canada, regulators are trying to increase their oversight of the interactions and relationships between financial advisors and clients.

Barbara Shecter writes for Postmedia News that the Investment Industry Regulatory Organization of Canada is overhauling the Client Relationship Model's rules on advisor disclosures and what criteria their recommended investments must make.