(December 6 – 13:50 ET) – A national financial planning proficiency standard should
be developed within the existing self-regulatory system, says the Investment Dealers Association. This approach, the IDA said today in a prepared release, would
ensure a more flexible, cost-effective and efficient investor protection
regime. Further, it could be integrated into the current self-regulatory
proficiency regime.
The IDA made these comments in response to a draft financial
planning rule, published today by the Canadian Securities
Administrators.
The IDA says it has reservations about an approach that places undue
reliance on an exam, with no effective requirement for prior education or
supervised post-exam experience. In addition, it is concerned about the
breadth of a definition which would extend to some registrants who are not
actually performing as or holding themselves out as financial planners.
The IDA supports the
establishment of a national
proficiency regime for securities
registrants who hold themselves out
as financial planners. Investors
will benefit from enhanced
proficiency standards and reduced
consumer confusion.
Some 18 months ago, the
Securities Industry Advisory
Council (SIAC), comprised of the
IDA and the Canadian stock
exchanges, announced its intention
to establish standards for the use
of the title `financial planner’
for all employees of Member firms,
subject to regulatory approval.
This decision responded to concerns
expressed by the public,
regulators, and industry
participants that the `financial
planner’ title was being used
inconsistently and with no
assurance to the investor of
appropriate educational
qualifications.
The IDA has conveyed its views
to the CSA and will continue to
communicate the views of its
Members during the upcoming
comment period.
-IE Staff
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