ID
2020-008

Type
Rules
Sector
Financial Planners and Advisors Sector
Status
Public comment closed
Date
Comment Due Date

Thank you for providing your feedback on FSRA’s Proposed Financial Professionals Title Protection Rule and Guidance.

We appreciate the comments and questions received to date. Your feedback will help to inform our final rule and approach.

The request for submissions is now closed.

Summary

The Financial Services Regulatory Authority of Ontario (FSRA) is seeking feedback on Proposed Rule 2020-001 – Financial Professionals Title Protection (FPTP Rule) and proposed Approach Guidance – Financial Professionals Title Protection – Administration of Applications (FPTP Guidance). 

FSRA is also seeking comments and suggestions from stakeholders on ways that it could streamline the application and approval process.

The public consultation is open for 90 days. 

Overview

The proposed FPTP Rule sets out the requirements and standards that entities would be required to meet in order to obtain FSRA approval as a credentialing body, and to obtain FSRA approval of a Financial Planner (FP) or Financial Advisor (FA) credential. The proposed FPTP Rule also sets out ongoing requirements to maintain such approvals. The Notice of Proposed Rule and Request for Comment, which accompanies the proposed FPTP Rule, provides background and rationale to help understand the FPTP Rule, and sets out the process for public consultation.

The proposed FPTP Guidance sets out FSRA’s proposed approach to the administration of applications for credentialing bodies and FP/FA credentials under the proposed Title Protection Framework. It is intended to help potential applicants understand what is required to be approved, and maintain approval, as a credentialing body, and what is required to have an FP or FA credential approved under the Financial Professionals Title Protection Act, 2019 (FPTPA).

The proposed FPTP Guidance includes an outline of the type of information FSRA would expect in an application for approval of a credentialing body, as well as approval of FP or FA credentials.

Background

In the 2019 Ontario Budget, the government announced that it would introduce legislation to limit the use of the titles of “financial planner” and “financial advisor” in Ontario to individuals who have obtained a credential from a credentialing body approved by FSRA.

The Financial Professionals Title Protection Act, 2019 (FPTPA) received Royal Assent in May 2019. It has not been proclaimed into force. 

FSRA was granted rule-making authority under the FPTPA to design the FP/FA Title Protection Framework, including:

  • approval criteria for credentialing bodies and credentials;
  • applications by prospective credentialing bodies;
  • application fees; and
  • transition periods for existing FP/FA title users.

Useful Links

#By submitting your content, you agree to have your materials posted on our engagement portal, used in reports and other materials prepared by Financial Services Regulatory Authority of Ontario (FSRA) that may be shared with the public. Content is moderated so that all posts are respectful and professional. The Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c.F.31, applies to all online content.

Use left and right arrows to navigate between tabs.
Sector Comment Date posted Sort ascending
Financial Planners and Advisors Sector
[2020-008] Stephen Frank - CLHIA

November 20, 2020
Financial Planners and Advisors Sector
[2020-008] Ontario Bar Association

November 16, 2020
Financial Planners and Advisors Sector
[2020-008] Carol Wilding - CPA Ontario

November 16, 2020
Financial Planners and Advisors Sector
[2020-008] Jim Wingrove - The Co-operators

November 16, 2020
Financial Planners and Advisors Sector
[2020-008] Andrew Teasdale

November 16, 2020
Financial Planners and Advisors Sector
[2020-008] Harold Geller

November 16, 2020
Financial Planners and Advisors Sector
[2020-008] Consumer Advisory Panel

November 16, 2020
Financial Planners and Advisors Sector
[2020-008] Matthew Latimer - Federation of Mutual Fund Dealers
Please find attached the Federation comment letter on the proposed Financial Professionals Title Protection Rule.
November 12, 2020
Other
[2020-008] Evelyn Jacks - Knowledge Bureau
Thank you for the opportunity to provide this response.
November 12, 2020
Home, Life and Health Insurance Sector
[2020-008] John A. Adams - Primerica Financial Services Limited (PFSL)
Attached, please find Primerica Financial Services' Response to FSRA's Draft Rule 2020-001 - Financial Professionals Title Protection.
We appreciate the opportunity to provide our recommendations.

Submitted on behalf of John A. Adams, CEO
November 12, 2020
Financial Planners and Advisors Sector
[2020-008] Canadian Advocacy Council - CFA Societies Canada
Please find attached a comment letter on behalf of The Canadian Advocacy Council of CFA Societies Canada.

We welcome the opportunity to engage with you further on any key priority in front of you and your team.

Regards,

The Canadian Advocacy Council of CFA Societies Canada
120 Adelaide Street West, Suite 2205|Toronto, ON M5H 1T1
Phone: 416.366.3658 | [email protected] | www.cfacanada.org

November 12, 2020
Financial Planners and Advisors Sector
[2020-008] Devin Mataseje - FP Canada

November 12, 2020
Financial Planners and Advisors Sector
[2020-008] Nancy Allan - Independent Financial Brokers of Canada
Attached is the comment letter from Independent Financial Brokers of Canada.

November 12, 2020
Financial Planners and Advisors Sector
[2020-008] Paige Ward - Mutual Fund Dealers Association
Please find attached the MFDA's comments on Proposed Rule 2020-001 Financial Professionals Title Protection under the Financial Professionals
Title Protection Act, 2019.
November 12, 2020
[2020-008] Tasmin Waley - Canadian Bankers Association

November 12, 2020
Other
[2020-008] Dan Hallett - HighView Asset Management Ltd
Attached is my submission in response to the consultation on the Financial Professionals Title Protection Act.
November 12, 2020
Credit Unions and Caisses Populaires Sector
[2020-008] Robert Wellstood - Kawartha Credit Union
See attached.
November 12, 2020
Other
[2020-008] Mary Lou Olton - Edward Jones

November 12, 2020
Financial Planners and Advisors Sector
[2020-008] IIROC

November 12, 2020
Financial Planners and Advisors Sector
[2020-008] Paul Bourque - The Investment Funds Institute of Canada

November 12, 2020
Financial Planners and Advisors Sector
[2020-008] Keith Costello - Canadian Institute of Financial Planners/Canadian Institute of Financial Planning
On behalf of its over 10,000 members, The Canadian Institute of Financial Planners (CIFPs) is pleased to provide this submission commenting on Proposed Rule (2020-001). The Proposed Rule and the entire title protection framework are of great importance to CIFPs members as they are for all industry participants and for all Canadians.

The views of the over 7,000 students of The Canadian Institute of Financial Planning (CIFP)--our affiliate educational organization--are also represented in this document.
November 12, 2020
Other
[2020-008] Melissa Ghislanzoni - Portfolio Management Association of Canada (PMAC)
Attached on behalf of the over 280 members of the Portfolio Management Association of Canada (PMAC), please find attached our response to FSRA's consultation on the regulation of Financial Planner and Financial Advisor titles.
We thank you for the opportunity to provide our comments.
Please do not hesitate to reach out should you have any questions.


November 12, 2020
[2020-008] Douglas Walker - FAIR Canada | Canadian Foundation for Advancement of Investor Rights
Please find attached the comment letter submitted on behalf of FAIR Canada | Canadian Foundation for Advancement of Investor Rights
November 12, 2020
Financial Planners and Advisors Sector
[2020-008] James Ryu - Advocis
Please find attached Advocis' comments in regards to Proposed Rule [2020-001], Financial Professionals Title Protection.

Regards,
James Ryu
November 12, 2020
Financial Planners and Advisors Sector
[2020-008] Marc Flynn - CSI

November 11, 2020
Financial Planners and Advisors Sector
[2020-008] Jason Pereira - The Financial Planning Association of Canada

November 11, 2020
Other
[2020-008] Jason Watt - Business Career College Corp
Please find attached our full commentary. Thank you for the opportunity.
November 11, 2020
Financial Planners and Advisors Sector
[2020-008] Jason Pereira - The Financial Planning Association of Canada

November 10, 2020
Financial Planners and Advisors Sector
[2020-008] Nick Pszeniczny - Financial Horizons Group

November 10, 2020
[2020-008] Poonam Puri
Please see attached the Osgoode IPC's comment letter on FSRA's FAFP Title Consultation.
November 10, 2020
Financial Planners and Advisors Sector
[2020-008] Ron Cooke - Strategic Wealth Protection Partners Inc.
I have been a qualified life insurance and financial services advisor for over 30 years. With this proposal you are telling me that even though I am still licensed that now I cannot tell people that I will advise them on the same things I have advised them on for the last 30 years. I understand what you are trying to do with the changes proposed but you are missing all the people that are qualified life insurance advisors offering their clients investments from insurance companies. This is disconnect, especially for the clients who I have to tell them that even though I am still licensed I am not a financial advisor. If being licensed to sell life insurance is not qualified to be called a financial advisor then there is something drastically wrong with the system. I can understand that you may need certain qualifications to call your self a financial planner. And, if you are a licensed life insurance advisor who is licensed to offer life insurance, disability insurance, RRSP's, TFSA's, RESP's, Non-Reg investments and annuities to their clients but cannot advise them on this makes no sense. What do all the life insurance advisors clients do for advice?
November 10, 2020
Credit Unions and Caisses Populaires Sector
[2020-008] Rachel Barry - Canadian Credit Union Association (CCUA)

November 6, 2020
Financial Planners and Advisors Sector
[2020-008] Jacquie Skinner - Institute of Advanced Financial Planners (IAFP)

October 27, 2020
Other
[2020-008] Michelle Alexander - IIAC
Please find attached the IIAC comment letter on the proposed Financial Professionals Title Protection Rule.
October 26, 2020
Home, Life and Health Insurance Sector
[2020-008] Matthew Sanger
Regulating titles of financial planners and financial advisors is long overdue. It would help to prevent the kind of misleading practice experienced by my elderly parents some years ago. When I looked into the financial advice my father received from his long time “financial advisor” I was unable to obtain basic information on the performance of his investments. On further investigation, I , found that the “advisor” had failed to inform my parents how we was compensated, failed to provide stanard disclosure documents, and did not base his recommendations on an assessment of my parents’ financial needs. This neglect of basic industry standards and ethics led my parents to sever their relationship with the so-called advisor (David Burns of David Burns and Associates in Ottawa). When I looked into recourse available to my parents, I discovered that my options were extremely limited because David Burns had no designation as a financial advisor and therefor was not subject to a professional regulatory body. My only avenues for complaint were the ombudsperson for Standard Life, whose life insurance products he sold, and the ombuds service of the industry association, the Canadian Life and Health Insurance Association, neither of which were effective. The proposal to regulate the use of the titles financial planner and financial advisor will help to better protect others in the future.
October 22, 2020
Financial Planners and Advisors Sector
[2020-008] Curtis Findlay
Please see my attached submission commenting on the proposed framework for Title Protection of FA's and FP's.
October 22, 2020
Financial Planners and Advisors Sector
[2020-008] Ken Kivenko - Kenmar Associates

October 22, 2020
Home, Life and Health Insurance Sector
[2020-008] Lisa Moretto - Masters Life Insurance Agency
In regards to the ability to use a specific title, years of experience should also be considered when making this decision on the title. This could be in combination with investment and/or insurance courses. Older people in the business should not be penalized for not having the education that was not required when they started in the business. As long as continuing education was and will be adhered to.
September 30, 2020
Credit Unions and Caisses Populaires Sector
[2020-008] Steve McQueen
A large portion of the population comes to "financial advisors", and "financial planners" for guidance on how to save for retirement, build wealth and secure their futures. However, the advice that the general public receives from these individuals is often contrary to the public's best interest, and serving to the bank's own interests.

The issue is that Financial Advisors/Planners (FAPs) are trained by the bank, and they are trained to recommend what amounts to poor investment decisions, and borders on predatory behaviour. I want to be clear, FAPs are recommending what they genuinely believe to be a sound course of action, but they are trained poorly on purpose, to recommend products that are more financially beneficial to the bank.

If these roles are allowed to credentialize, there should be a strict standard of training, and examinations similar to the rigor of the CFA program (e.g., ensure the level of competency is at least as rigorous as the CFA or CA examinations), and ensure that there is not allowed to persist sub-standard advice from these roles through a thorough training, and grievance process. Do not confuse the public with additional titles, and do not enable predatory selling of bad investments to niave consumers. There needs to be a clear line: You are either an advisor to your client, and acting in their best interest always, or you are a sales person for the bank and need to be clearly labelled as such.
September 22, 2020
[2020-008] Charles A Mccrudden
Regarding the August 13 2020 consultation with respect to financial services persons it is essential that "fiduciary responsibility" be included in the requirements for anyone undertaking an advisory role in a client's financial transactions. Semantics such as advisor and and adviser only serve to confuse even the informed amongst the investing environment. Eliminating the confusion is essential to building confidence in this business as is the fiduciary aspect.

Without these two changes the financial advice industry is destined to decline in stature and eventually fail as a business model which is unfortunate for investors who need assistance with the planning of their financial future.
August 20, 2020
Financial Planners and Advisors Sector
[2020-008] David Wagg - Olympian Financial Inc
Are the bank advisors going to be held to the same standards or will it continue as usual with them hiding behind the banks credentials.
They do not have the same rigorous processes to go through to get licensed and are not held to the same level of competence.
Let's make the playing field level as anyone giving financial advice be it for investments or mortgages should have the same rules to follow.

August 17, 2020
Financial Planners and Advisors Sector
[2020-008] Krystyn Schilling
Regulating the titles is a fantastic initiative!
However seeing that FSRA will develop a fee model to recover its costs for establishing and administering the new credentialing regime, including compliance and enforcement of the permitted use of titles is disappointing.
The Organizations that grant and administer industry designations are already expensive to join and continue your membership with. In addition to those organization fees, advisors need to pay hefty fees to their SRO (whether IIROC or MFDA) for regulation and then they needs errors and omissions insurance, etc.
Please regulate the titles but please also regulate the costs to advisors because the increased fees is going to make it unsustainable for advisors to join and remain in the industry. OR fees will need to increase and make good financial advice more difficult for the average person to attain.
August 14, 2020
Date posted Sector Question and response
Financial Planners and Advisors Sector

Question: Dear Sir/Madam, Will the legislation ban fake awards? Their are magazines/websites that purport to name the "best" financial planners (for a fee). Here is an example https://www.ccaward.com/

FSRA response:

The scope of the title protection framework, and the supporting legislation, does not include the awards referred to in your question. 

Financial Planners and Advisors Sector

Question: Will the use of 'financial planning' be regulated in relation to products as well? IE- TD claims to have a 'financial planning app' that is really just selling investments. see announcement of app here: https://www.advisor.ca/news/industry-news/td-launches-financial-planning-app/?utm_source=EmailMarketing#038;utm_medium=email&utm_content=advisor'sedge&utm_campaign=PM_Bulletin

FSRA response:

Thank you for sharing your concern. FSRA is aware of the mobile app. Once in force, FSRA’s proposed rule, and the supporting legislation, will introduce restrictions on individuals’ use of the financial planner and financial advisor titles. No individual will be permitted to use these titles without first obtaining a credential that has been approved by FSRA for use of one of the two titles. The legislation gives FSRA authority to take action against individuals who use the financial planner or financial advisor titles without holding an approved credential. FSRA will consider complaints about individuals’ misuse of the titles on a case-by-case basis, and will take action as appropriate.