Individuals using the financial planner or financial advisor titles will now be required to hold an approved credential from an FSRA-approved credentialing body, meet minimum standards of education and adhere to a code of conduct.
The initiative is set to be phased out over time. The transition period of the FSRA is four years for financial planners and two years for financial advisors, designed to provide individuals who are required to comply with the framework before and after January 1, 2020. Using titles. Importantly, however, those beginning to use these titles after January 1, 2020 must “immediately” obtain credentials from an FSRA-approved credentialing body.
Huston Locke, executive vice president of market conduct at the FSRA, said that, so far, there has been no regulation of the use of these titles, something that has caused confusion among consumers, and doubts about the expertise of financial advisors. or services.
He added: “Deciding how to invest your money is complex and emotional and requires expertise and sound judgment. This change is long overdue and something is being sought by consumers: your financial professional. Clarity and confidence when working with him.”
New rules have been coming for a long time. The province said in its 2019 budget that it would introduce legislation to list the use of the financial planner and consultant titles for those seeking credentials from bodies approved by the FSRA.