Sector: Financial Planners and Financial Advisors
Status: With Minister for Review
FSRA Rule 2020-001 - Financial Professionals Title Protection (FPTP Rule) outlines the requirements and standards that entities would be required to meet in order to obtain FSRA approval as a credentialing body (CB), and to obtain FSRA approval of a Financial Planner (FP) or Financial Advisor (FA) credential.
As required by the Financial Services Regulatory Authority of Ontario Act, 2016 (FSRA Act), an initial proposed FPTP Rule was posted on August 13, 2020 for a 90-day public consultation. The consultation summary report summarizes the written comments received during the first public consultation and FSRA’s responses to those comments.
Following feedback received, FSRA re-posted the revised FPTP Rule on May 11, 2021 for an additional 40-day consultation. The consultation summary report summarizes the written comments received during the second public consultation and FSRA’s responses to those comments.
The FSRA Board of Directors has approved the FPTP Rule and delivered it to the Minister of Finance on January 10, 2022.
Stakeholder engagement is the core of FSRA’s approach to becoming a modern financial services regulator. FSRA appreciates the feedback provided by all stakeholders on the FPTP Rule and the overall design of the FP/FA Title Protection Framework, and will continue to engage with stakeholders as it moves toward an implementation date.
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 new title protection framework will take a measured approach to enhance consumer protection without introducing unnecessary regulatory burden.
The framework is intended to respond to concerns among consumer/investor advocates and industry about the currently unregulated use of titles in the financial services market today. A consumer research survey commissioned by FSRA in fall 2020 found that 86% of consumers agreed that there is a need for minimum standards for the use of the “financial planner” and “financial advisor” titles.
The 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
- transition periods for existing FP/FA title users
- Publication of Board Approved Rule - Rule 2020-001 – Financial Professionals Title Protection
- Publication of Board Approved Rule – Amendment 1 to Rule 2019-001 – Assessment and Fees
- Consultation on proposed Approach and Interpretation Guidance – Administration of Applications and Supervisory Framework