FSRA title regime to include “best interest” provision

Approved users of the financial advisor and planner titles in Ontario will be required to adhere to expectations that they put clients’ interests first under proposed new guidance.

The Financial Services Regulatory Authority of Ontario (FSRA) is consulting on further revisions to its proposed guidance on measures to regulate the use of the financial advisor and planner titles.

The proposed revisions include clarifying that approved credentialing bodies “should implement processes for consumer complaint handling and title user disclosure,” and that their code of ethics should require titleholders to put their clients’ interests first.

The revisions also provide additional detail on FSRA’s supervisory approach for credentialing bodies and uncredentialed title users.

Under the guidance, FSRA will accept consumer and industry complaints about individuals allegedly using the restricted titles without an approved credential.

“FSRA will review and investigate complaints in a timely manner and take appropriate action, if warranted. Such action could include FSRA issuing a compliance order,” it said in the proposed guidance.

The regulator said that, following a consultation earlier this year, it has made a number of changes to proposed guidance on its new regime that would restrict the use of certain business titles to reps who have met certain minimum proficiency standards.

The consultation on the proposed guidance revisions will close on Dec. 13.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.