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. Feedback and comments are due by November 12, 2020.
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.
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.
- Financial Professionals Title Protection – Administration of Applications
- Notice of Proposed Rule 2020-001 and Request for Comment
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|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/
The scope of the title protection framework, and the supporting legislation, does not include the awards referred to in your question.