ID
2021-010

Type
Rules
Sector
Financial Planners and Advisors
Status
Open
Date
Comment Due Date

Summary

The Financial Services Regulatory Authority of Ontario (FSRA) is seeking feedback on proposed revisions to Rule 2019-001 – Assessments and Fees (FSRA Fee Rule).

The proposed amendments to the FSRA Fee Rule (Amendment 1) establish the fee structure under the Financial Professionals Title Protection Act, 2019 (FPTPA).

FSRA is also seeking feedback on several key elements of the proposed fee structure, which are outlined in the Notice of Rule and Request for Comment.

The public consultation is open for 90 days. 

Overview

Proposed Amendment 1 establishes the fees that prospective and approved credentialing bodies (CBs) will pay to FSRA in order to obtain and maintain approval under the Financial Professionals Title Protection Framework for financial planners (FP) and financial advisors (FA).

The Notice of Rule and Request for Comment, which accompanies proposed Amendment 1, provides background information and rationale on the proposed approach to establishing the fee structure, and sets out the process for the public consultation.

Background

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 on the industry.

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 title protection framework for FPs and FAs, including:

  • approval criteria for credentialing bodies and credentials;
  • applications by prospective credentialing bodies;
  • application fees; and
  • transition periods for existing FP/FA title users.

The Financial Services Regulatory Authority of Ontario Act, 2016 (FSRA Act) authorizes FSRA to make rules governing fees, including application fees.  

Useful links

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