A joint statement issued by FP Canada, the Financial Planning Association of Canada, Business Career College and Kenmar Associates is calling out Financial Services Regulatory Authority of Ontario (FSRA) fee rule amendments, urging the province’s minister of finance to reject them.
“Specifically, the proposed (title protection) fee rule, if approved, would create a special fee exemption for the Canadian Investment Regulatory Organization (CIRO) to apply for approval as a credentialling body,” the groups write in the statement, issued June 6.
“The proposed fee rule itself is fundamentally flawed. If approved by the minister, it would create fee exemptions that are completely disproportionate to Title Protection Framework cost realities and would exempt CIRO and its representatives from paying their fair share of fees required to fund Ontario’s Title Protection Framework; fees all other credentialling bodies (CBs) and their credential holders pay.”
The groups also call for a review of the proficiency standards for credential holders. “Approving CIRO and its representatives for financial advisor title use prior to this review and on the basis of the current standards would have the effect of permanently entrenching them.” The group further states that the issues should be addressed before the final fee rule is approved.
“CIRO must be required to pay its fair share of program costs. As proposed, FSRA is creating a precedent for exemptions at the expense of existing approved credentialling bodies,” says Jason Watt, vice president with the Business Career College and member of FSRA’s stakeholder advisory committee for financial planners and financial advisors. “We urge FSRA to join the Financial and Consumer Affairs Authority in Saskatchewan in exploring approaches to financial advisory competency requirements that best serve the interests of the consumer.”
Related:
Provincial regulator proposes rule change reducing fees for self-regulator
