Planner education certification seen as key
The Canadian financial planning industry has been facing many of the same problems as its Australian counterpart, with the major financial planning organisations similarly pursuing the implementation of legislative restrictions on who can use the designations "financial planner" and "financial adviser".
The issue has been revealed in a recent Canadian Financial Planning Standards Council submission to the Ontario Expert Committee's Consultation on Financial Advisory and Financial Planning Policy Alternatives which points to "the gap that currently exists as a result of the absence of a single set of mandated standards and common oversight for those who claim, either through title or advertising, to be financial planners or to offer financial planning as a core service".
Further it said much of the consumer and marketplace confusion was rooted in the interchangeable use of "financial planner" and "financial advisor".
"The terms ‘financial planning', ‘financial planner' and ‘financial plan' are generally well‐defined and specific in nature, while the terms ‘financial advice' and ‘financial advisor' are broadly‐used, generic and non‐specific," the submission said.
It said the term "financial planner" was one of the most commonly misused titles in the financial services industry and represented a title which projected "a professional image that may lead a consumer to believe that the person using it is qualified to provide financial planning when in fact they may not be."
"To garner trust and increase consumer protection and well‐being, Ontarians must be able to count on self‐explanatory titles that clearly describe the services being offered, and be assured that the title corresponds with the appropriate qualifications, competencies and services of that particular role," the submission said.
It said that while there might be several appropriate, distinct titles and services within the broader "financial advisor" space, it was proposing that the government start with the most discrete identifiable group—financial planners.
"The most effective, practical and least cumbersome solution to addressing financial planner regulation (or ultimately that of other financial advisors) lies in professional certification," the submission said.
Recommended for you
ASIC has issued infringement notices to two AFSLs over financial advisers providing personal advice while they were unregistered.
Australian retirees could increase their projected annual incomes by as much as 51 per cent through comprehensive financial advice, according to a Vanguard study, but cost continues to be an issue.
AMP has announced a senior appointment to its North leadership team, reinforcing the firm’s commitment to the advice industry.
Despite the financial adviser exam being rooted in ethics, two professional year advisers believe the lack of support and transparency from the regulator around the exam is unethical.
