In June, the Insurance Portal reported that a delegation from Canada had approached the International Association of Registered Financial Consultants (IARFC) about establishing a chapter. At the time, the IAFRC did not reveal who was part of this group.
On Aug. 11, Jim Ruta and Chanchal (Sisi) Chakrabarti issued a press release announcing they were co-leading the initiative to establish a chapter of the IAFRC in Canada. Ruta is a Life insurance Hall of Fame Speaker and advisor coach. He is also a regular, longtime columnist for the Insurance Journal and Insurance Portal’s Expert Corner. Chakrabarti is a Million Dollar Round Table (MDRT) Court of the Table advisor and managing partner of Advisory Money Strategies Inc.
Contacted by the Insurance Portal, Ruta said he has been researching the idea of forming a chapter for a year and believes it is “right for Canada now. This is a non-political, international association of qualified financial consultants whose first mission is to make consultants better to provide better service to the community.”
In an interview, Ruta told Insurance Portal that the reaction has been positive so far. He says a number of advisors have expressed interest, including some top Canadian advisors. To become a chapter, a minimum of 25 advisors, qualified to join the association, are required.
“We have had wonderful feedback about this initiative… and expect that we can get the first 25 members we need to form a chapter in short order,” says Ruta. The Canadian chapter would operate out of the Toronto Area for all of Canada, he adds.
Ohio-based IAFRC is a non-profit founded in 1984. Its aim is to “foster public confidence in the financial services profession, help financial consultants exchange planning techniques, and recognize practitioners who are truly committed to ethical standards and continuous professional education,” the organization says on its website. Presently it lists six international chapters on its site.
IAFRC issues its own credentials: The registered financial consultant (RFC), the registered financial associate (RFA) for less experienced agents and the master registered financial consultant (MRFC).
To be an RFC, the advisor has to have completed one of several education options, have a minimum of three years of experience as a full-time practitioner, be licensed, abide by the IARFC’s code of ethics and complete 40 hours of education every two years. To maintain a MRFC designation, agents and advisors must complete 40 hours of training every year.
Ruta notes that Canadian advisors can already apply for membership to the IAFRC and, if they qualify, be granted the RFC designation. “These first members will be Charter Members” of the Chapter that he and Chakrabarti are aiming to form.
He added that there are some Canadian advisors who hold an IARFC designation, so they are already members. But, the present initiative is the first effort to form a chapter in Canada, Ruta says.
Not competing with Advocis
Ruta underlined that the effort to form a chapter of the IAFRC in Canada is not a move to compete with Advocis, The Financial Advisors Association of Canada, an organization that is presently aiming to recruit new members as it recovers and rebuilds after a challenging period.
“We are not competing with Advocis because the missions are very different. And we are also not trying to poach Advocis members. I remain an Advocis member and encourage everyone to do the same,” stated Ruta.
Why is a new association needed?
In an interview with Insurance Portal, Ruta says he likes that IAFRC has a narrow focus, which is to help advisors become better financial professionals. The organization does not do advocacy, he points out. “They’re non-political, they’re about helping advisors be better.”
He notes that all potential members are vetted before being accepted into the association, so standards are high.
Ruta adds that he believes there are a lot of “disenfranchised advisors” in Canada who are not members of any association. He hopes that by forming a chapter, IAFRC can give them a home.
He stresses that IAFRC also strongly recognizes the importance of life insurance as a foundation of financial planning.
If a Canadian chapter is formed, Ruta would like to see it hold monthly meetings, perhaps virtually, where members can connect and discuss topics aimed at helping them be better advisors and more successful. “We want to transform average into awesome.”
