FP Canada and Advocis, the Financial Advisors Association of Canada, have welcomed the passage of The Financial Planners and Financial Advisors Act by the Government of Saskatchewan.
Saskatchewan Minister of Justice and Attorney General Don Morgan first introduced the Act in December 2019, following consultations led by the Financial and Consumer Affairs Authority of Saskatchewan (FCAA). The Act restricts who may legally use the titles "financial planner" and "financial advisor" in Saskatchewan. Only individuals who obtain, and maintain in good standing, an approved credential from an approved credentialing body, may use them.
In a statement issued July 6, both FP Canada and Advocis said they believe the new legislation is particularly important in the current environment, as many Saskatchewanians struggle with the economic challenges associated with the COVID-19 pandemic.
"Saskatchewanians need professional financial planning advice now more than ever, as many are dealing with new financial challenges," says Cary List, President and CEO of FP Canada. "This legislation will benefit consumers by providing them with the clarity and protection they need as they seek professional advice to help them rebuild financial confidence."
Will elevate stature of financial advisors
"The restriction of key titles to individuals with qualifying credentials will go a long way in elevating the trust and stature of financial advisors and planners as true professionals," said Greg Pollock, President and CEO of Advocis. "More importantly, it ensures that individuals, families and businesses in Saskatchewan can be confident in whom they choose to trust to provide them with financial advice during these uncertain times, as not just anyone will be permitted to use these titles."
The FCAA will now work on developing regulations to flesh out the Act, including definitions of "financial planner" and "financial advisor", criteria for assessing credentialing bodies and credentials, and transition policies for existing practitioners. An industry consultation is expected.