Ontario regulator introduces new details concerning credentialing bodies following feedback from stakeholders
The Financial Services Regulatory Authority of Ontario (FSRA) has taken another step on its work to establish a stronger environment of consumer protection within the province’s financial services industry.
Following feedback collected from stakeholders in its May public consultation on the Financial Professionals Title Protection Framework, the provincial regulator is seeking comments on a number of updates it made to its proposal, particularly with respect to its Application Guidance and Supervision Guidance.
Under the application guidance, FSRA added that applicants should furnish a copy of their most recent audited financial statement for review. It also clarified that credentialing bodies (CBs) should require credential holders to disclose their credential to consumers in a clear and timely manner.
With respect to complaint handling, the FSRA said CBs should inform complainants of potential alternative complaint handling options in case a credential holder is also a registrant/licensee with a regulatory body or has a credential that’s been approved by another approved CB. Public disclosures on disciplinary actions, the regulator added, should contain sufficient detail to let consumers understand the key facts and outcome of a case.
The regulator also clarified that CBs’ code of ethics or professional expectations should require credential holders to put clients’ interests first, strengthened language around its expectations for CBs in monitoring, supervising, and enforcing ongoing requirements for individuals to continue to hold and use a credential, and made “identifying appropriate asset allocation” part of the minimum standard for financial planner and financial advisor credentials.
With respect to supervision, the FSRA added more detail defining how it will supervise approved CBs, including expectations on annual information returns, the proposed CB examination process, and the purpose and rationale of proposed thematic reviews.
The updates also provide more detail on how the FSRA proposes to deal with individuals using FP or FA titles without an approved credential, its proposed process for handling complains, and the scope of FP/FA complaints that would fall under its purview.
The consultation on the revisions to the Application Guidance and Supervisory Guidance will close on December 13, 2021.
