ID
2021-003

Type
Rules
Sector
Financial Planners and Advisors
Status
Public comment closed
Date
Comment Due Date

Thank you for providing your feedback on FSRA’s Proposed Financial Professionals Title Protection Rule, Application Guidance and Supervision Guidance.

We appreciate the comments received to date. Your feedback will help to inform our final rule and approach.

The request for submissions is now closed.

Summary

The Financial Services Regulatory Authority of Ontario (FSRA) is seeking additional feedback on the:

The proposed FPTP Rule and FPTP Application Guidance were posted for consultation in August 2020. All stakeholder comments received were carefully considered and are summarized in the consultation summary report. For this second consultation, the FPTP Rule is posted with annotated revisions. A summary of the changes made to the FPTP Application Guidance is also available.

The public consultation is open for 40 days.

Overview

The proposed FPTP Rule sets out the requirements and standards that entities would be required to meet in order to obtain FSRA approval as a credentialing body, and to obtain FSRA approval of a Financial Planner (FP) or Financial Advisor (FA) credential. The proposed FPTP Rule also sets out ongoing requirements to maintain such approvals. The Notice of Changes and Request for Further Comment, which accompanies the proposed FPTP Rule, provides background and rationale to help understand the revisions to the proposed FPTP Rule, the proposed approach to establishing a fee structure, and sets out the process for public consultation.

The proposed FPTP Application Guidance sets out FSRA’s proposed approach to the administration of applications for credentialing bodies and FP/FA credentials under the proposed Title Protection Framework. It is intended to help potential applicants understand what is required to be approved, and maintain approval, as a credentialing body, and what is required to have an FP or FA credential approved under the Financial Professionals Title Protection Act, 2019 (FPTPA).

The proposed FPTP Application Guidance includes an outline of the type of information FSRA would expect in an application for approval of a credentialing body, as well as approval of FP or FA credentials.

The proposed FPTP Supervision Guidance outlines FSRA’s supervision approach for approved credentialing bodies, and FP and FA titles users without an approved credential. The guidance also addresses entities that misrepresent themselves as approved credentialing bodies or as offering approved credentials without FSRA approval.

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.

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 Financial Professionals Title Protection Act, 2019 (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; and
  • transition periods for existing FP/FA title users.

Useful links

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Before we begin, please make sure you do not include any personal or private financial information. If your inquiry does require this information be shared with us, please call us at 1-800-668-0128 or email us at contactcentre@fsrao.ca for instructions.

By submitting your content, you agree to have your materials posted on our engagement portal, used in reports and other materials prepared by Financial Services Regulatory Authority of Ontario (FSRA) that may be shared with the public. Content is moderated so that all posts are respectful and professional. The Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c.F.31, applies to all online content.

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Sector Comment Date posted Sort ascending
Financial Planners and Advisors
[2021-003] Katie Walmsley - Portfolio Management Association of Canada

July 9, 2021
[2021-003] Mike Macoun - The Benefits Alliance Group

June 24, 2021
[2021-003] Sabena Sandhu - Canadian Credit Union Association (CCUA)

June 24, 2021
[2021-003] Consumer Advisory Panel

June 21, 2021
[2021-003] Jean-Paul Bureaud - Canadian Foundation for Advancement of Investor Rights

June 21, 2021
[2021-003] Andrew Teasdale - Not Applicable
Please note my comment letter re : Financial Services Regulatory Authority of Ontario (FSRA) Notice of Proposed Rule and Request for Comment Proposed Rule Second Consultation Financial Professionals Title Protection

Regards

Andrew Teasdale, CFA
June 21, 2021
[2021-003] Canadian Bankers Association
Attached, please find the Canadian Bankers Association's Response to FSRA's Draft Rule 2021-003 - Financial Professionals Title Protection Rule and Guidance -Second Consultation.
Thank you,
Ibrar Ahmed
June 21, 2021
Pensions
[2021-003] Danelle Parkinson - Ontario Pension Board

June 21, 2021
Financial Planners and Advisors
[2021-003] Evelyn Jacks - Knowledge Bureau

June 21, 2021
Financial Planners and Advisors
[2021-003] John A. Adams - Primerica Financial Services (Canada) Ltd.
Attached, please find Primerica Financial Services' Response to FSRA's Draft Rule 2021-003 - Financial Professionals Title Protection Rule and Guidance Second Consultation.

We appreciate the opportunity to provide our recommendations.

Submitted on behalf of John A. Adams, CEO
June 21, 2021
Financial Planners and Advisors
[2021-003] Kenmar Associates Investor Education and Protection

June 21, 2021
Financial Planners and Advisors
[2021-003] Jacquie Skinner - Institute of Advanced Financial Planners

June 21, 2021
Financial Planners and Advisors
[2021-003] Carol Wilding - Chartered Professional Accountants of Ontario

June 21, 2021
Licensing
[2021-003] Paige L. Ward - Mutual Fund Dealers Association of Canada

June 21, 2021
Financial Planners and Advisors
[2021-003] Susan Allemang - Independent Financial Brokers
Attached is the submission from Independent Financial Brokers of Canada (IFB) to the second consultation on the proposed Financial Professionals Title Protection Framework.
June 21, 2021
Financial Planners and Advisors
[2021-003] Canadian Advocacy Council - CFA Societies Canada
Please find enclosed a comment letter (in PDF format) on behalf of The Canadian Advocacy Council of CFA Societies Canada.

We welcome the opportunity to engage with you further on any key priority in front of you and your team.

Regards,

The Canadian Advocacy Council of CFA Societies Canada
120 Adelaide Street West, Suite 2205|Toronto, ON M5H 1T1
Phone: 416.366.3658 | cac@cfacanada.org | www.cfacanada.org
June 21, 2021
Financial Planners and Advisors
[2021-003] Keith Costello - Canadian Institute of Financial Planning/Canadian Institute of Financial Planners
Thank you for your request for comment letters regarding this important consumer protection initiative regarding the use of the titles ‘Financial Planner’ and ‘Financial Advisor’ in Ontario.

The Canadian Institute of Financial Planning (CIFP) is pleased to represent the views of its more than 7,000 students. Further, our submission also represents the comments of our affiliate member organization, The Canadian Institute of Financial Planners (CIFPs), who represent over 10,00 members.

The perspective and constructive recommendations of CIFP as it pertains to the financial professionals title protection rule and guidance – second consultation are detailed in the attached PDF submission.

Thank you for taking our comments into consideration.
June 21, 2021
Financial Planners and Advisors
[2021-003] Royal Bank of Canada - Royal Bank of Canada
Please find attached the RBC comment letter in response to the FSRAO 2021-003 Financial professional title protection rule and guidance second consultation.
Thank you.

June 21, 2021
Financial Planners and Advisors
[2021-003] Devin Mataseje - FP Canada

June 21, 2021
Financial Planners and Advisors
[2021-003] Irene Winel - IIROC

June 21, 2021
Financial Planners and Advisors
[2021-003] Jason - Pereira
Please find the Financial Planning Association of Canada's office commentary attached.
Thank you for your consideration.
June 21, 2021
Life and Health Insurance
[2021-003] Brent Mizzen - Canadian Life and Health Insurance Association
Attached please find comments from CLHIA on Financial professionals title protection rule and guidance second consultation.
June 21, 2021
Financial Planners and Advisors
[2021-003] James Ryu - Advocis
On behalf of Advocis, The Financial Advisors Association of Canada, please find attached our response to Consultation 2021-003: Financial professionals title protection rule and guidance, second consultation.
June 21, 2021
[2021-003] Jessica Baker - The Co-operators
The Co-operators - Financial Professionals Title Protection Rule and Guidance - Second Consultation - 18 June 2021
June 18, 2021
Financial Planners and Advisors
[2021-003] Michelle Alexander - Investment Industry Association of Canada
Please find attached the IIAC submission on the proposed Financial Professional Title Protection framework.
June 18, 2021
Financial Planners and Advisors
[2021-003] Marc Flynn - Canadian Securities Institute
Please CSI's comment on Revised Rule and Guidance.
June 18, 2021
[2021-003] Neil Gross, Investor Advisory Panel

June 17, 2021
Date posted Sector Question and response
Life and Health Insurance

Question: Which of the two titles i.e. Financial Planner (FP) and Financial Advisor (FA) have to study more courses that will enhance their capability to advise a client?
My thoughts are like CFP has four courses to study and pass the exam to be allowed to use the title; and, CLU has seven courses to study and pass the exam to use the title; also, similar to other designations like CPA, LLB etc. is indicative of what the designation carrier can do for the consumer. In fact there is no need to protect such a title because it is earned by the holder.

FSRA response:

As part of the second public consultation, FSRA has outlined updated minimum standards for assessing the curriculum of credentials for FP and FA title usage. These are outlined in the proposed Approach Guidance – Administration of Applications. The proposed minimum standards for FP title use require education content that covers a broader set of technical knowledge areas than that for FA title usage. The approach does not contemplate the number of courses that must be completed in order to obtain the credential.