FSRA Stakeholder Advisory Committee for Financial Planners and Financial Advisors
The Financial Services Regulatory Authority of Ontario (FSRA) is committed to an open, transparent and collaborative approach that involves stakeholders and ensures broad input and perspectives to inform its direction.
Stakeholder Advisory Committees (SACs) will serve as consultative bodies to the FSRA Board as well as management. They are an important part of FSRA’s stakeholder engagement process as it relates to FSRA’s priorities, budget, principles-based regulation and other matters as the Board or management deems appropriate.
These Terms of Reference relate to FSRA’s role in the Financial Planners and Financial Advisors sector, which includes:
- establishing minimum standards for credentialing bodies and Financial Planner and Financial Advisor credentials
- review and approval of applications for credentialing bodies and Financial Planner and Financial Advisor credentials
- monitoring and supervision of approved credentialing bodies
- development of a public registry for Financial Planner and Financial Advisor credential holders
- development of industry and consumer education
- monitoring and addressing emerging trends and consumer issues relating to the Financial Professionals Title Protection Framework
These Terms of Reference are intended to inform the creation and operation of the Financial Planners and Financial Advisors SAC.
2. Mandate of the Stakeholder Advisory Committee
The Financial Planners and Financial Advisors SAC will:
- inform FSRA’s annual business planning, with a focus on the Financial Planners and Financial Advisors-related priorities and budget that will guide FSRA’s operations and regulatory activity, before they are published and delivered to the Minister of Finance
- provide feedback on the progress made by FSRA on its Financial Planners and Financial Advisors priorities from the previous annual business plan
- provide forward looking insights and trends to the Board of Directors
- provide feedback to the FSRA Board on FSRA rule-making activity in the Financial Planners and Financial Advisors sector where the Board believes that, given the complexity and importance of a specific rule and the issues identified by FSRA Management, the Board will benefit from direct engagement with the sector via the SAC
- upon request of FSRA, provide a forum for input on Financial Planners and Financial Advisors sector issues, FSRA priorities and other initiatives or activities involving FSRA
- have the opportunity for an in-camera session with the Board, at least annually, to raise any issues related to FSRA management and the Financial Planners and Financial Advisors sector that the SAC wishes to discuss with the Board without the presence of FSRA management
The Board may decide to convene a SAC meeting to discuss any other issue related to the regulation of the Financial Planners and Financial Advisors sector and may decide to combine SACs from different sectors for such a meeting.
3. Nomination and appointment of Stakeholder Advisory Committee members
Appointments to the Financial Planners and Financial Advisors SAC will be made through an open nomination process posted online. Selections will be made by FSRA, based in part on the experience of the individuals who are put forward, their role in the sector they represent and other factors that FSRA may determine are relevant.
The Financial Planners and Financial Advisors SAC will have a target membership of fourteen stakeholder members that could represent consumer / investor advocates, approved credentialing bodies, financial services trade / industry associations and professionals working in the financial services sector (based on qualifications set out in Appendix 1). FSRA can choose to add or remove any member of the SAC at any time, and a SAC member may resign by giving written notice.
FSRA is looking for members for a two-year term commencing in Fall 2022 and this term may be renewed by FSRA for one additional year to allow membership to be staggered to provide continuity to the Committee.
FSRA will publish the names of the members of the Financial Planners and Financial Advisors SAC on its website.
4. Members of the Stakeholder Advisory Committee
Stakeholder nominees to the Financial Planners and Financial Advisors SAC should be senior members of their respective organizations or professions. Successful nominees will be expected to place the public interest ahead of personal and professional interests in the discharge of their committee responsibilities. See Appendix 1 for specific experience FSRA is seeking to have represented through the stakeholder members of the Financial Planners and Financial Advisors SAC.
To ensure FSRA has a cross-section of views, we welcome consumer representation on the Financial Planners and Financial Advisors SAC.
Responsibilities of Financial Planners and Financial Advisors SAC members will include:
- reviewing background material in preparation for meetings
- attending meetings (delegation is not permitted if a member is unavailable, but FSRA may appoint another Financial Planners and Financial Advisors SAC member on an interim basis if a member is unavailable due to incapacity or other justifiable temporary cause)
- providing advice, information and feedback to FSRA
- using best efforts to develop consensus and to identify any issues where stakeholder consensus does not exist, and the reasons for an absence of consensus
- providing feedback to FSRA on the functioning of the Financial Planners and Financial Advisors SAC
- working with FSRA management and other SAC members to prepare for Financial Planners and Financial Advisors SAC meetings with the Board
5. Public process, input from others and disclosure
The Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c.F.31, as amended, will generally apply to information and material provided to and prepared by or for the Financial Planners and Financial Advisors SAC.
Members of the Financial Planners and Financial Advisors SAC are permitted to obtain assistance from co-workers or industry collaborators. However, members and those who assist them are required to maintain confidentiality of all information provided to the Financial Planners and Financial Advisors SAC or prepared by or for the Financial Planners and Financial Advisors SAC for presentation or delivery to FSRA (with the exception of information made public by FSRA, including any submissions by the Financial Planners and Financial Advisors SAC or its members as part of a public comment process sponsored by FSRA).
6. Meetings, agendas and deliverables
It is expected that the Financial Planners and Financial Advisors SAC will participate in the following two-hour meetings:
- with the Board of Directors on forward looking matters in May
- with Management – on FSRA priorities (a progress meeting in the spring and then consultation on the draft priorities and budget in September/October)
- there may be additional meetings as per the terms of reference
For those selected to participate on the SAC, FSRA will not be providing any remuneration. However, consumers residing outside of the Greater Toronto Area are entitled to be reimbursed for reasonable travel expenses they may incur in attending meetings in accordance with FSRA approved Travel, Meal and Hospitality Directive.
Members may be asked to prepare material for consideration by FSRA or for presentation to the Board.
FSRA management shall endeavor to provide meeting agendas and related materials at least one week in advance of each regular meeting. FSRA management shall prepare a summary of each SAC meeting with the Board and distribute it, including any accompanying written submissions, to members, typically within three weeks following a meeting. As part of these meetings FSRA will communicate what recommendations or feedback has been adopted and what has been considered but not adopted. FSRA also intends to publish a high-level summary of the Financial Planners and Financial Advisors SAC’s work on FSRA’s website within approximately three weeks of each meeting with the Board.
Appendix 1: Industry member qualifications
FSRA is seeking industry members that have direct experience in one or more of the following functional areas within the Financial Planners and Financial Advisors sector:
- accreditation and certification
- financial planning and/or advisory services
- administration and operation of a financial services designation / licensing program
- consumer / investor advocacy
Industry members will be selected with an emphasis on ensuring adequate diversity by geography and organization size.
In addition to direct industry representation, FSRA will be seeking representatives from the following:
- consumer / investor advocates
- approved credentialing bodies
- financial services trade/industry associations
- professional designation/accreditation bodies
- financial services education providers
- professionals in the financial services industry