Read more: Minister approves financial planner and financial advisor title protection
Under the title protection regime, anyone calling themselves a financial advisor or financial planner in Ontario will be obligated to make sure they’re dealing with clients competently, professionally, fairly, honestly, and in good faith. Title users will be under active supervision by a recognized credentialling body, and will be expected to adhere to minimum professional standards to continue using the title.
To mitigate any overlap of regulatory requirements on individual title users, FSRA’s approach to title protection draws from existing requirements already administered by licensing and professional designation bodies.
“Overwhelmingly, the industry supports this,” White says. “They know that there has been confusion in the marketplace for years, and that works against the large majority of qualified professional financial planners and advisors. I think the industry realizes that this will create value where consumers can trust when they see the title associated with the person they’re receiving financial planning and advisory services from.”
Title users will also be subject to a complaints and discipline process, offering consumers additional reassurance in case they feel something has gone wrong in the relationship. To support this, FSRA is requiring credentialing bodies to have a robust supervision process in place, as well as a code of conduct that requires credential holders to put the client’s interest first, among other requirements.