Financial Planners and Financial Advisors Consultation Summary Report

• FAIR Canada
• IFB

• CAP
• IFB

Stakeholders welcome FSRA’s commitments to assess credentialing bodies and conduct a review of the framework.

• Recommend FSRA prioritize the need to establish appropriate compliance procedures and robust oversight mechanism for approved credentialing bodies over burden reductions, cost cutting or harmonization. 
• Concerned that in the absence of better informed / engaged public, and the lack of direct FSRA involvement, the proposed supervisory framework may not be sufficient to achieve the intended consumer protection outcome. 

FSRA thanks stakeholders for their submission and the support expressed for the key deliverables included in the proposed 2023-2024 Statement of Priorities and Budget.

Through supervision and assessment of each credentialing body, FSRA is committed to ensuring approved credentialing bodies continue to have the necessary expertise, resources, policies, procedures, and administrative practices to serve the public interest and effectively oversee the conduct of their FP/FA credential holders. 

FSRA plans to conduct formal examinations of approved credential bodies in FY2023/24 and publish an annual compliance report to make public its findings based on the credentialing body supervision activities of that year. 

• FAIR Canada

Stakeholders noted that while informing the public about key elements of the framework would be a welcome key deliverable, it should not be framed as a planned outcome. Recommend FSRA revise planned outcome iii) in the proposed FP/FA Statement of Priorities as follows:

• Enhance public confidence by ensuring that, FPs and FAs meet consistent minimum education standards and abide by a code of conduct that puts consumer interests first.

FSRA thanks stakeholder for their shared focus on consumer / investor issues. 

FSRA will consider this feedback before finalizing the proposed 2023-24 priorities and budget for the FP/FA sector. 
 

• Co-operators

Stakeholder urges FSRA to continue engaging with potential credentialing bodies to ensure financial planners and financial advisors have the necessary opportunity to apply their existing credentials to maintain use of the FP/FA titles.

FSRA thanks stakeholder for their continued engagement in the implementation of the title protection framework.

The title protection framework leverages existing regimes for licensing and designating financial professionals. This approach allows for existing licences/designations to be recognized as meeting minimum standards for title usage, and to enable certain individuals to continue to conduct business using the FP and FA titles without significant disruption.

FSRA will continue to work with credentialing bodies to consider potential options that would allow for individuals to leverage their existing credentials to enable them to continue using the FP/FA titles.

• IFB
• CAP

Stakeholders note that the proposed priorities and budget for the FP/FA sector needs to consider a widescale public awareness campaign with an initial focus on the FP/FA titles to help shape consumer / investor expectations around the type and standard of service FA’s and FP’s can provide and, importantly, the differences between them.

Stakeholders urge FSRA to ensure industry stakeholders have the opportunity to provide feedback on proposed consumer education campaigns and ensure consumer trust is not undermined in properly licensed and fully regulated licensees who choose not to pursue a FP or FA credential.

FSRA thanks stakeholders for their continued engagement in the implementation of the title protection framework.

To coincide with Financial Literacy Month, FSRA launched a consumer education campaign on the title protection framework in November 2022. The objective of the campaign was to instill confidence that individuals using these titles in Ontario are adequately trained and supervised.

The campaign encouraged consumers to confirm a financial services professional’s qualifications by asking them a few simple questions, such as What credential(s) do you have and from what credentialing body? What financial services education, background and level of experience do you have? What services do you provide and how can I get a financial plan that’s right for me and my family?

FSRA believes that effective consumer and industry education campaigns require input from various stakeholders. Going forward, FSRA will engage with the newly established FP/FA Stakeholder Advisory Committee to solicit feedback on proposed future consumer and industry education campaigns. 

• IFB

Stakeholder noted that FSRA and insurance regulators in other Canadian jurisdictions should work towards national standards for title use.

FSRA understands the importance of harmonizing with other jurisdictions in order to reduce regulatory burden.

FSRA continues to engage with other jurisdictions to discuss the potential for harmonization on various elements of the title protection framework. 

While harmonization is an important objective, FSRA is mindful that other jurisdictions may take varying approaches that suit their existing regulatory frameworks and public policy positions.
 

• CAP

Stakeholder noted that to alleviate potential consumer confusion and burden to consumers/investors, recommend that FSRA be the first point of contact for consumer/investor questions or concerns about individuals calling themselves FPs or FAs. In this capacity, FSRA would be able to either address the matter itself or direct the individual to the appropriate credentialing body.

FSRA thanks stakeholder for their shared focus on consumer / investor issues.

FSRA will consider this feedback as it continues to implement the title protection framework.

• CAP

Stakeholders suggested FSRA should consider incorporating a “whistle-blower” program as part of the FP/FA complaints process and offer monetary reward under certain conditions to encourage consumers/ investors to bring forward their complaints.

The Financial Professionals Title Protection Act, 2019 (FPTPA) does not provide FSRA with the authority to establish a “whistleblower” program as part of the FP/FA complaints process or offer monetary rewards or financial incentives to encourage consumers to submit complaints. 

As set out under the FPTPA, in order to obtain approval as a credentialing body under the framework, organizations must have robust complaint handling and disciplinary/enforcement processes in place to oversee the conduct of their credential holders. 

As part of its ongoing supervisory work, FSRA will review these processes to ensure that credentialing bodies provide appropriate resolution for consumers in the event of a misconduct of a credential holder.

• IFB

Stakeholder suggested that FSRA should develop a public registry for FPs and FAs and provide a direct link to insurance and securities regulatory websites so consumer can check the FP’s or FA’s license/registration status.

To effectively administer and enforce the FPTPA and ensure continued consumer protection, FSRA will establish a public registry of FP/FA credential holders.

FSRA will consider this feedback before finalizing the information / content that will be made available in the public registry.

• FAIR Canada
• Co-Operators
• IFB

Stakeholders were generally supportive of FSRA’s continued cross-sector commitment to strengthening the focus on consumers.

• A stakeholder noted that FSRA needs to continue to outline specific deliverables on key consumer protection issues to the greatest extent possible, including, for example, specific deliverables on complaint handling /dispute resolution standards.
• A stakeholder suggested the Consumer Office and Consumer Advisory Panel should work alongside counterparts in other financial services, and particularly those in the securities sector.  Similarly, a stakeholder also underscored the importance of bringing a shared insurance/securities consumer lens to any cross-sectoral concerns since consumers frequently engage in both life insurance and securities transactions.
• A stakeholder encouraged the Consumer Office to consider the practical insights of life/health insurance advisors who are dealing with consumers everyday.
• A stakeholder noted its support for FSRA’s identification of vulnerable consumers given the demographic realities of an aging population, increased cyber security risks, financial fraud, and uncertain economic realities. The stakeholder recommended FSRA work with the Canadian Council of Insurance Regulators (CCIR) to align with work being done by the Canadian Securities Administrators (CSA). A stakeholder suggested that FSRA should address the existing gap in the complaint handling framework for consumers who may have complaints against independent insurance advisors selling products such as segregated fund contracts, which are not within the mandate of the Ombudsman for Banking Services and Investments’ (OBSI) and the OmbudService for Life and Health Insurance.
• A stakeholder suggested FSRA would benefit from including specific deliverables is the planned outcome to “Strengthen Consumer Advisory Panel (CAP) engagement” and require engagement with the CAP and other consumer stakeholders on all consumer-related policy work. 

For complaints regarding life insurance products, including segregated funds, consumers of segregated funds currently have available to them dispute resolution mechanisms that include access to the insurer’s dispute resolution system complaints and internal ombudsperson, including for complaints related to the selling agent. Consumers also have access to the OmbudService for Life and Health Insurance dispute resolution service for complaints submitted to the insurer that weren’t resolved at the insurer stage, including for segregated fund products. FSRA will continue to work with stakeholders on its understanding of the system and opportunities to improve complaint resolution in FSRA-regulated sectors.

As part of FSRA’s research efforts in understanding consumer vulnerability, FSRA has undertaken environmental scanning to better understand work that is being undertaken by other regulators and jurisdictions globally (including the Canadian Securities Administrators) in protecting vulnerable consumers. FSRA will take into consideration your suggestions about working with the Canadian Council of Insurance Regulators to align FSRA’s efforts in protecting vulnerable consumers.

FSRA’s Consumer Office agrees with the suggestion of the value of insights of persons at the forefront of dealing with consumers daily, including industry members like advisors. The Consumer Office’s relationship development activities, through community outreach, has also included industry members and industry organizations. The Consumer Office’s Consumer Advisory Panel has additionally always had representation from the legal and/or industry communities, who deal directly, or whose colleagues deal directly, with consumers every day, in different capacities. FSRA, more generally, currently has multiple avenues for obtaining direct insights from industry members, such as advisors, including through Technical Advisory Committees and Stakeholder Advisory Committees, and through public consultations for proposed public policy. 

FSRA will continue to consider current and new opportunities to directly engage advisors and others who have consumer-facing insights.  
 

• IFB
• Co-Operators

Stakeholders were generally supportive of FSRA’s intent to modernize its systems and embrace innovation while maintaining a strong focus on consumer safety.

• A stakeholder highlighted FSRA’s Test and Learn Environments as an example and noted the importance developing stronger ties with other regulators and to encourage a harmonized approach so industry can innovate and meet the evolving needs of consumers.
• A stakeholder commended FSRA’s intention to improve the licensing and registration processes for the insurance sector and is supportive of FSRA’s efforts to access data and analytic tools to improve its regulatory oversight and increase administrative efficiencies.
   

FSRA thanks stakeholders for their support for the Modernize Systems and Processes priority. 

FSRA welcomes innovation initiatives by market participants through the FSRA Test and Learn Environment (TLE) and reiterates its commitment on innovation facilitation across FSRA-regulated financial services sectors. Over the next year as FSRA rolls out the pilot TLE, FSRA will share experiences and adapt the TLE accordingly. In the meantime, FSRA welcomes collaboration with sector participants and peer regulators, as FSRA will work to ensure the expansion for TLE is done in a responsible and wholesome way.

FSRA supports innovation in Ontario’s financial services sectors. FSRA invites stakeholders to review its Innovation Framework and apply to FSRA’s TLE. The Innovation Office can be reached at [email protected].