New Brunswick has taken the first steps in following the lead of three other Canadian provinces to develop a potential approach to the regulation of titles of financial advisors in that province.
On August 10, the Financial and Consumer Services Commission of New Brunswick (FCNB) said it is considering recommending a regime and rules similar to the approach taken by Ontario and Saskatchewan to protect “financial planner” and “financial advisor” as regulated titles. Following this method, the FCNB would leverage current regimes to license and designate financial professionals.
The FCNB said it has taken the steps after concerns were raised by consumer and investor advocates about the large number of titles currently used by those providing advice which has led to consumer confusion.
Rules outlined in Quebec
It notes that Quebec is using the title “financial planner” for its advisors. In that province, those wishing to receive the financial planner title must take a course, complete an examination and receive a licence.
While the Quebec regulations are in place, they are not yet in effect in Ontario and Saskatchewan. In Ontario, the Financial Services Regulatory Authority (FSRA) recently re-published rules and guidance for a second comment period. While not in effect yet, the Saskatchewan government has passed its legislation which is similar in many ways to Ontario’s but also differs from it in the kinds of offences, penalties and enforcement provisions for those who use protected titles without authorization.
FCNB has published its consultation paper for a 75-day comment period. It is asking commenters whether they support the province adopting title protection legislation similar to Ontario’s and Saskatchewan’s.
