Since the framework was officially announced in late March, the Financial Services Regulatory Authority of Ontario (FSRA) has recognized three credentialing bodies for financial advisors: FP Canada; the Institute for Advanced Financial Education (IAFE), a subsidiary of Advocis; and the Canadian Securities Institute (CSI).
“The main problem is that we don’t know where FSRA is applying additional scrutiny or how they have visibility into the standards being applied,” Kivenko says, noting how most of the CBs approved have spotty or unproven track records. “They haven’t publicly released terms and conditions on any of their credentialing body or credential approvals – it has not been transparent.”
If Ontario’s financial regulator is asking CBs or credentials with weak practices and standards to improve over time, Kivenko says, investors would be happy to know. But the lack of visibility into the process, he says, points to a dilution of the act’s stated regulatory framework and principles.
“They need to demonstrate, particularly for the FA title, that there is a credible baseline standard being applied. Because in what’s been currently messaged and approved we can’t find it, calling into question the utility of regulating the FA title altogether,” Kivenko says.
Read more: Why provinces should follow Quebec, not Ontario, financial planner standards
