Ontario's expert committee on financial planning has released its policy recommendations, and suggests that there should be regulations to govern who may hold themselves out to the public as "financial planners".

Last year, Ontario appointed an expert committee to consider financial advisory and financial planning policy alternatives. The committee says they uncovered "a lack of regulator oversight" of those who offer financial planning services and noted that even those advisors who are regulated for the sale of insurance and investments are only regulated for certain aspects of the financial planning advice they offer.  

Varying degrees of proficiency

Among other things, the committee found that there are "varying degrees of proficiency" among those who offer financial planning advice, and that there is also a "plethora of titles and designations" in the industry which may confuse consumers and make it difficult for them to be certain that their advisors actually have the expertise to offer financial planning services.

As a result, the panel is recommending that financial planning in Ontario be regulated, "either expressly or implicitly through Holding Out by way of titles, described services or otherwise." What’s more, the financial planning activities of advisors who are already registered to offer securities, insurance, or mortgages should be overseen by their existing regulator (“or regulators for those who have more than one licence”), while those who operate outside of the current regulatory framework should have their financial planning activities regulated by a new Financial Services Regulatory Authority (FSRA).

Universal set of regulatory standards

The panel has also recommended that the education, training, credentialing, and licensing of individuals who offer financial planning be harmonized and subject to one universal set of regulatory standards.

These are just some highlights; the complete document is available on the Ontario government's web site. The committee is encouraging interested parties to submit their comments on the proposals, which must be received on or prior to June 17, 2016.

A disclaimer at the beginning of the committee's report points out that the views, opinions and recommendations expressed in it are solely those of the committee, and do not necessarily reflect the official policy, position, or views of the Ontario government.