TORONTO, Sept. 21, 2022 (GLOBE NEWSWIRE) -- On behalf of a coalition of concerned financial consumer advocates, FAIR Canada is calling on provincial governments to establish higher standards for financial advisors.
Consumers expect a financial advisor to have met high ethical, educational, and proficiency standards. They also expect them to be knowledgeable about a range of subjects, including personal finance, retirement planning, and taxation.
In implementing its new title protection framework, the Financial Services Regulatory Authority of Ontario’s approach sets the bar too low, raising concerns that consumers may be at risk.
“We are disappointed with Ontario’s approach to approving credentials for financial advisors,” said Jean-Paul Bureaud, Executive Director, FAIR Canada. “Ontario’s product-focused approach doesn’t align with what the majority of consumers would expect from a financial advisor.”
In contrast, the Financial and Consumer Affairs Authority (FCAA) of Saskatchewan is exploring an approach that better protects consumers. In its recent request for comment on the financial planner and financial advisor regulations, the FCAA expressed concern that a product-focused approach may be more than just disappointing for clients—it may result in poor financial decisions.
“The number one consideration in implementing a title protection regime should be consumer protection, and credentialing approvals in Ontario are moving towards an increasingly troubling lowest common denominator. Saskatchewan should strive to build a model that better meets consumer needs and expectations for financial advice,” said Michael Thom, Managing Director, CFA Societies Canada.
Low requirements for financial advisors also risk undermining the conduct requirements for financial professionals regulated by securities law. “Creating a system where the threshold to be a financial advisor is the same as someone who is able to sell a mutual fund means that any mutual fund dealing representative could become a financial advisor, essentially through a rubber stamp of the industry,” said Jason Pereira, President, The Financial Planning Association of Canada. “Ontario’s approach effectively accomplishes little and instead of reducing regulatory burden, it actually increases it.”
For further information, contact any of the following coalition of concerned consumer advocates:
President, CEO and Executive Director
The Financial Planning Association of Canada
CFA Societies Canada
About FAIR Canada
FAIR Canada champions the rights of individual investors in Canada through advocacy, education, and regulatory advancements. We are the trusted, independent voice on significant issues that affect individual investors. As Canada’s only non-profit, investor-focused organization, we provide informed, objective comment on regulatory issues that have an impact on investor fairness and protection. Learn more about investor rights at FAIRCanada.ca and connect with us on Twitter and LinkedIn.
For further information contact:
Jean-Paul Bureaud Executive Director, FAIR Canada firstname.lastname@example.org
Andrea David Communications Specialist, FAIR Canada email@example.com