The Investment Industry Regulatory Organization of Canada is proposing a new rule to regulate financial planning by its members.

The proposed rule, published for comment in Friday’s OSC Bulletin, intends to define financial planning, and set out the proficiency and supervision requirements to be met by dealers in providing financial planning services.

IIROC notes that there are currently no specific rules in place that address financial planning services, and that dealers frequently ask for guidance in this area, as there is currently little existing regulation. “The proposed rule is intended to establish a basic regulatory framework for the provision and supervision of financial planning,” it notes, by ensuring that minimum education and proficiency standards are met by those providing financial planning services, and that minimum supervisory standards are met.

It allows that industry costs may increase “marginally” due to the costs of compliance with the new rule, but that this would be outweighed by the benefits.

Comments are due within the next 30 days.