(December 6 -15:20 ET) – The
Canadian Bankers Association (CBA)
welcomes the draft financial
planning rule published today by
the Canadian Securities
Administrators as an important step
forward in enhancing consumer
protection and reducing consumer
confusion in the financial planning
marketplace.
“The CBA commends the Canadian
Securities Administrators for their
collaborative approach to
developing the new financial
planning standard set out in
today’s draft rule. Financial
planning is important to our
customers, and we were pleased to
be involved in discussions with the
regulators,” said Raymond Protti,
President and CEO of the CBA.
“Once a common standard is in
place consumers seeking financial
planning advice will know that
their financial planner has passed
a stringent common exam and
satisfies rigorous proficiency
requirements.”
Mr. Protti noted that the
banking industry supports the draft
rule’s approach of regulating
individuals who “hold themselves
out to be financial planners”
rather than trying to impose a
precise definition of financial
planning. “We also support the
regulators’ proposal to
recognize the education and
experience of financial planners
now active in the marketplace who
have already successfully completed
a recognized financial planning
program,” he added.
The CBA is concerned, about the
wide range of job titles that are
considered to be the equivalent of
“financial planner” under the
rule. “To avoid consumer confusion
and unnecessary regulatory
duplication, the rule should focus
on regulating those who call
themselves ‘financial planners’
instead of the wide range of titles
proposed in the rule,” Mr.
Protti indicated. “We will be
raising this concern in our response through the
public consultation process.”
-IE Staff
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