Have you supported disclosing all fees, e.g. the total MER and TER for MFs? CRM2 is a joke in this respect in that it just forces disclosure of trailing commissions.
Re 'the regulators know..' - why would they be kicked to the curb? You're serving them now. I do find the notion that these sub $50k clients are receiving ongoing savings, debt services and insurance product advice a bit of a stretch to believe.

Re 'being driven by the banks' - really? They've got a huge amount to lose in potential reduced sales of their high MER $1 billion+ AUM tepid performing closet index mutual funds.

OK, I'd accept retention of trailing commissions if all financial advisors were legally mandated to have a fiduciary duty towards their clients. Would you be OK with that or would you fight it tooth and nail just like the industry did on the U.S. (hmmm..., I wonder why?).