The following is a summary of revisions to two pieces of proposed Approach Guidance relating to the Financial Professionals Title Protection Framework, following the second public consultation on the Framework (May 13 - June 21, 2021):

  1. Administration of Applications
  2. Supervisory Framework

1. Administration of applications

General

  • Various amendments throughout the document for clarity.

Governance and administration

  • Added that applicants should provide a copy of the most recent audited financial statement for review.

Conduct oversight of credential holders

  • Added that credentialing bodies (CBs) should require credential holders to disclose their credential to consumers in a clear and timely manner.
  • Added that CBs should inform complainants of the potential for alternative complaint handling options in the event that a credential holder is also a registrant/licensee with a regulatory body or holds an approved credential with another approved CB.

Publicly available information

  • Clarified that the level of detail posted publicly with respect to disciplinary action should provide consumers with a sufficient understanding of the key facts and outcome of the case.

Credentialing program

  • Strengthened language for CBs to include, as part of their code of ethics or professional expectations, a requirement for credential holders to put the client’s interest first.
  • Strengthened language for CBs on the monitoring, supervising and enforcing of ongoing requirements for individuals to continue to hold and use a credential (e.g., including compliance with the CB’s code of ethics and professional standards).
  • Included “identifying appropriate asset allocation” as part of the minimum standard for FP and FA credentials (Appendix 1).

2. Supervisory framework

General

  • Guidance document is now identified as Approach and Interpretation.
  • Various amendments and rearranging throughout the document for clarity.

Approved credentialing bodies

  • Enhanced detail on FSRA’s supervisory approach for approved CBs, including:
    • Annual Information Return – purpose/rationale / submission expectations;
    • the proposed CB examination process; and
    • proposed thematic reviews, their purpose and rationale.

Individuals using the FP/FA titles without an approved credential

  • Enhanced detail on FSRA’s proposed supervisory approach for individuals using the FP/FA titles without an approved credential.

Complaints

  • Enhanced detail on FSRA’s proposed process for handling complaints and the scope of FP/FA complaints, which fall under FSRA’s jurisdiction.

Titles that could reasonably be confused with FP/FA

  • Amended language to clarify FSRA’s supervisory approach on complaints received about individuals who use the FP/FA titles without an approved credential.
  • Titles out of scope of the proposed framework – removed the righthand column of Appendix 1 included in the May/June consultation (titles out of scope of the proposed framework).

Enforcement

  • Enhanced detail on FSRA’s authority and approach to enforcement action under the Financial Professionals Title Protection Act, 2019 (FPTPA), including:
    • Issuing compliance orders to approved CBs and CBs that offer credentials without approval;
    • Issuing compliance orders to individuals who use the FP/FA titles without an approved credential; and
    • The right for an entity or individual to a hearing before the Financial Services Tribunal in the event a notice of proposal is issued by FSRA.