On August 8, 2008, the IIROC proposed a rule on financial planning that contemplated basic proficiency and supervisory requirements for IIROC reps who hold themselves out as financial planners.
IIROC has informed the Canadian Securities Administrators that it has withdrawn the proposed rule.
Read: Explain the risks of leveraged investing, warns IIROC
During the public comment process, several commenters raised a number of differing concerns. One overarching view that emerged from the comments was that a more holistic approach to the regulation of financial planners would be preferable to the relatively limited measures being proposed by IIROC.
Since the time of publication of the proposal, discussions have been ongoing among various stakeholders about how best to regulate the provision of financial planning services across Canada. The most recent example occurred in November 2013, when the Ontario Minister of Finance announced plans to investigate the merits of proceeding with tailored regulation of financial planners and to consider the appropriate regulatory framework for doing so.
IIROC has taken the view that a coordinated regulatory approach to financial planning should be adopted across Canada, since consistent proficiency, ethical, and professional requirements would have important benefits not only for investors, but also for the financial planning community itself. In light of these considerations, the SRO deemed it advisable to withdraw the limited rule proposed in 2008.
Also read:
Compliance roundup – February 2014