The Investment Funds Institute of Canada (IFIC) is in favour of proposals that would require advisors to have specific training before being able to sell exchange-traded funds (ETFs).

As we reported when the Mutual Fund Dealers Association (MFDA) first released its proposed proficiency standard for ETFs (Policy No. 8), the regulator wants to make sure that advisors who sell ETFs understand not only the characteristics, features, benefits, and risks associated with the product, but also the logistics of how it is offered (e.g., the way market quotes are obtained).

Earlier this week IFIC came out in support of the proposed educational standard, saying it will expand access to ETFs and provide another investment option to clients who work with MFDA dealers.

"The value of investing with advice"

"IFIC strongly supports the value of investing with advice, a value which is enhanced by working with knowledgeable advisors and having ready access to investment products meeting the needs of clients," reads the submission.

The industry association notes that its educational affiliate, the IFSE Institute, has already updated and revised its ETF course to meet the MFDA’s proposed requirements. "It is ready to deliver education and provide tools to help MFDA firms and their advisors meet these requirements to enable them to offer these products to their clients," says IFIC.