The British Columbia Securities Commission (BCSC) has published for comment proposed amendments to MFDA rule 1.2.5 (misleading business titles prohibited).
In an effort to prevent investor confusion, the proposed amendments establish minimum proficiency requirements for approved persons using the title “financial planner.”
The proposal would restrict the use of “financial planner” to those who receive approval or obtain specified designations or certifications. The BCSC publish the proposals on October 27.
The MFDA’s original consultation paper on the use of “financial planner” was published in September 2015, and a summary of comments to the paper was published in January 2016. Those comments expressed support for commonly used financial planning designations and offered input on criteria to meet a designation program.
The criteria include educational requirements focused on comprehensive financial planning, as well as:
- examination and course requirements that demonstrate competency in financial planning;
- adherence to a code of ethics, standards of practice or standards of professional responsibility;
- completion of continuing education specifically relating to comprehensive financial planning proficiencies; and
- a process whereby the body that grants the designation/certification also has the authority to remove the designation/certification in appropriate circumstances.
CSA’s proposed targeted reforms and best interest standard, published in April, propose stricter, standardized industry title options that would relegate some advisors to “salespersons,” regardless of designations or certifications.
Comments on the MFDA rule run to January 25, 2017.
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