Queen’s Park sent a signal today that it is considering reviewing the governance of financial advisors in Ontario.
“Bring it on,” says Greg Pollock, president and CEO of Advocis, the largest voluntary association of financial advisors with more than 5,000 members in Ontario (more than 11,000 nationally). “We have been championing reforms to enhance the profession for more than a decade because it is the most efficient and effective way to improve consumer protection.”
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The news was contained in the province’s Fall economic statement, delivered by Finance Minister Charles Sousa.
While there were few details, Advocis is hopeful the review will lead to a system of oversight akin to what has long been in place for lawyers, accountants and other professions.
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Earlier this year, Advocis launched its own version of what this could look like. Its Professions Model calls for every financial advisor operating in the province to be a registered member of an association recognized by the government, and for these accredited associations to set standards of proficiency, conduct, education and training.
“We’ll see what happens in the weeks and months ahead,” Pollock says. “Right now we’re very pleased that the Ontario government is open to possibly moving ahead.”
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Currently, anyone can hold themselves out as a financial advisor in the province regardless of their background or credentials. This lack of oversight leaves consumers exposed to possible fraud or bad advice from unqualified advisors.
“An initiative to ensure that all advisors have to meet and maintain standards, and that the unethical are unable to practice, would find wide support among all parties, consumers and financial advisors alike,” Pollock adds. “We urge the government to proceed.”