The following is a summary of revisions to two pieces of proposed Approach Guidance relating to the Financial Professionals Title Protection Framework, following the second public consultation on the Framework (May 13 - June 21, 2021):
- Administration of Applications
- Supervisory Framework
1. Administration of applications
- Various amendments throughout the document for clarity.
Governance and administration
- Added that applicants should provide a copy of the most recent audited financial statement for review.
Conduct oversight of credential holders
- Added that credentialing bodies (CBs) should require credential holders to disclose their credential to consumers in a clear and timely manner.
- Added that CBs should inform complainants of the potential for alternative complaint handling options in the event that a credential holder is also a registrant/licensee with a regulatory body or holds an approved credential with another approved CB.
Publicly available information
- Clarified that the level of detail posted publicly with respect to disciplinary action should provide consumers with a sufficient understanding of the key facts and outcome of the case.
- Strengthened language for CBs to include, as part of their code of ethics or professional expectations, a requirement for credential holders to put the client’s interest first.
- Strengthened language for CBs on the monitoring, supervising and enforcing of ongoing requirements for individuals to continue to hold and use a credential (e.g., including compliance with the CB’s code of ethics and professional standards).
- Included “identifying appropriate asset allocation” as part of the minimum standard for FP and FA credentials (Appendix 1).
2. Supervisory framework
- Guidance document is now identified as Approach and Interpretation.
- Various amendments and rearranging throughout the document for clarity.
Approved credentialing bodies
- Enhanced detail on FSRA’s supervisory approach for approved CBs, including:
- Annual Information Return – purpose/rationale / submission expectations;
- the proposed CB examination process; and
- proposed thematic reviews, their purpose and rationale.
Individuals using the FP/FA titles without an approved credential
- Enhanced detail on FSRA’s proposed supervisory approach for individuals using the FP/FA titles without an approved credential.
- Enhanced detail on FSRA’s proposed process for handling complaints and the scope of FP/FA complaints, which fall under FSRA’s jurisdiction.
Titles that could reasonably be confused with FP/FA
- Amended language to clarify FSRA’s supervisory approach on complaints received about individuals who use the FP/FA titles without an approved credential.
- Titles out of scope of the proposed framework – removed the righthand column of Appendix 1 included in the May/June consultation (titles out of scope of the proposed framework).
- Enhanced detail on FSRA’s authority and approach to enforcement action under the Financial Professionals Title Protection Act, 2019 (FPTPA), including:
- Issuing compliance orders to approved CBs and CBs that offer credentials without approval;
- Issuing compliance orders to individuals who use the FP/FA titles without an approved credential; and
- The right for an entity or individual to a hearing before the Financial Services Tribunal in the event a notice of proposal is issued by FSRA.