Financial Title Protection Rule and Fees will boost investors and consumers' confidence in FA and FP title deals
The Financial Services Regulatory Authority of Ontario (FSRA) is coming into the home stretch of its efforts to introduce title protection in the province.
In a news release, the regulator said on January 10, it presented the Financial Professional Title Protection (FPTP) Rule and the amended FSRA Fee Rule to Ontario's Minister of Finance for final approval.
“The Rule will provide consumers / investors with added confidence when dealing with [financial advisor] and [financial planner] title users who will be subject to minimum credentialing criteria and appropriate supervision by an approved credentialing body (CB),” the FSRA said in a release.
The latest iteration of the proposed rules, which the regulator said “will significantly enhance consumer protection while minimizing regulatory burdens and costs when enforcing Ontario’s Financial Professional Title Protection Act, 2019, comes after several rounds of consultations with industry and other stakeholders.
During the course of those consultations, several commenters have urged the FSRA to exempt FPs and FAs employed at firms already registered with self-regulatory organizations, particularly planners with a financial planning credential issued by a recognized credentialing body. The FSRA has said it is currently in discussions with organizations who have expressed interest in applying as a CB.
The rules will take effect upon ministerial approval, and when the relevant legislation has been proclaimed, the FSRA said. The 60-day timeline for the government to approve the rules will end on March 15.
