The Financial Services Regulatory Authority (FSRA) of Ontario has taken its first steps in bringing financial planners and financial advisors (planners and advisors) under its aegis, by opening with discussions with stakeholders regarding a plan that would firm up rules regarding the use of the titles and cracking down on individuals who manage money and call themselves planners or advisors without any qualifications.
Earlier in the year, the Financial Professionals Title Protection Act, 2019 (the Act) was passed by the Ontario legislature but not yet given Royal Assent. The Act requires anyone in working in the financial services industry who wants to use the advisor or planner titles to have the appropriate credentials and remain in good standing.
According to an article published on November 22, 2019 in the Globe and Mail, in preparation for the Act’s implementation, FSRA has begun conversations with stakeholders over the development of credentials governing the planner and advisor titles and the rules enforcing their usage. The regulator was quoted saying the consultation process will run for the first six months of 2020, followed by a 90-day comment period with the initial rules in place by year-end.
The regulator expects that the initial rules, in addition to covering the enforcement process and credential and educational requirements, may also grandfather certain classes of advisors or planners.
Canada currently has no national standard governing those who offer financial advice.
For more information, please call Barbara Hendrickson at BAX Securities Law (416) 601 -1004.
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