Legislation is being introduced to impose restrictions on the use of financial planning credentials
The Financial Planning Standards Council (FPSC) lauded the Ontario government's move to push through with legislation restricting the use of the “financial planner” title.
According to the council, the proposed legislation will allow only those who obtained appropriate financial planning credentials to use the “financial planner” title. FPSC president and CEO Cary List said this will also restrict the use of other titles related to financial planning, most of which are often misused to confuse and mislead consumers.
Early this year, the Ontario government pledged to collaborate with regulators to create standards that will ensure that those who use the title “financial planner” are qualified, ethical, overseen, and accountable for their professional conduct.
“FPSC has long advocated for regulatory standards to ensure anyone who calls themselves a ‘Financial Planner’ is qualified, ethical, overseen and accountable for their professional conduct,” List said.
Also Read: Canadian Securities Institute updates competency profile for planners
This move by the Ontario government came after the release of Ontario Expert Committee to Consider Financial Advisory and Financial Planning Policy Alternatives' recommendations.
The expert committee suggested that those using the title “financial planner” should be required to meet strict proficiency requirements and hold an appropriate financial planning credential, issued and overseen by an independent credentialing body.
List argued that this is timely given that the lack of regulatory standards for financial planning creates confusion and undermines the ability of consumers to make informed choices about their financial health.
“With careful implementation, these new requirements will create much-needed clarity and provide Ontarians with the confidence of knowing that any ‘Financial Planner’ they entrust will be someone who has demonstrated appropriate competence, is ethically sound, is overseen by experts who represent the public interest, and is accountable for their professional conduct," he underscored.
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According to the council, the proposed legislation will allow only those who obtained appropriate financial planning credentials to use the “financial planner” title. FPSC president and CEO Cary List said this will also restrict the use of other titles related to financial planning, most of which are often misused to confuse and mislead consumers.
Early this year, the Ontario government pledged to collaborate with regulators to create standards that will ensure that those who use the title “financial planner” are qualified, ethical, overseen, and accountable for their professional conduct.
“FPSC has long advocated for regulatory standards to ensure anyone who calls themselves a ‘Financial Planner’ is qualified, ethical, overseen and accountable for their professional conduct,” List said.
Also Read: Canadian Securities Institute updates competency profile for planners
This move by the Ontario government came after the release of Ontario Expert Committee to Consider Financial Advisory and Financial Planning Policy Alternatives' recommendations.
The expert committee suggested that those using the title “financial planner” should be required to meet strict proficiency requirements and hold an appropriate financial planning credential, issued and overseen by an independent credentialing body.
List argued that this is timely given that the lack of regulatory standards for financial planning creates confusion and undermines the ability of consumers to make informed choices about their financial health.
“With careful implementation, these new requirements will create much-needed clarity and provide Ontarians with the confidence of knowing that any ‘Financial Planner’ they entrust will be someone who has demonstrated appropriate competence, is ethically sound, is overseen by experts who represent the public interest, and is accountable for their professional conduct," he underscored.
For more of Wealth Professional's latest industry news, click here.
Related stories:
FPSC to educate planners on technology
When it comes to CFP designations, fit could be more critical than pedigree
