Sector: Financial Planners and Financial Advisors
Status: With Minister for Review
Amendment 1 to Rule 2019-001 – Assessments and Fees (Amendment 1) establishes the fee structure under the Financial Professionals Title Protection Act, 2019 (FPTPA). The structure outlines the fees that approved credentialing bodies (CBs) will pay FSRA to obtain and maintain approval under the Financial Professionals Title Protection Framework for Financial Planners (FP) and Financial Advisors (FA).
As required by the Financial Services Regulatory Authority of Ontario Act, 2016 (FSRA Act), the proposed Amendment 1 was posted on July 22, 2021 for a 90-day public consultation. The consultation summary report summarizes the written comments received during the public consultation and FSRA’s responses to those comments.
The FSRA Board of Directors has approved Amendment 1 and delivered it to the Minister of Finance on January 10, 2022. On January 31, 2022, FSRA re-submitted Amendment 1 to the Minister of Finance as a minor technical amendment was made to the Rule (altering the Rule’s coming into force provisions).
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 Amendment 1 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 required to be submitted by prospective credentialing bodies
- application fees
- transition periods for existing FP/FA title users
- Publication of Board Approved Rule – Amendment 1 to Rule 2019-001 – Assessment and Fees
- Publication of Board Approved Rule – Rule 2020-001 - Financial Professionals Title Protection
- Consultation on proposed Approach and Interpretation Guidance – Administration of Applications and Supervisory Framework