The Investment Industry Regulatory Organization of Canada (IIROC) has launched a new online tool to help investors sort through the morass of designations that financial advisors use.
The online IIROC Glossary of Financial Certifications aims to make it easier for investors to find information about 42 commonly-used designations, such as the CFP, CPA, and CIM.
It provides investors with information about the organization that grants these certifications; the sorts of exams required; education and experience requirements; and the complaint and disciplinary processes of the issuing organizations, where available. It does not attempt to rate or rank any of the designations covered in the glossary.
The regulator says that the glossary complements guidance proposed earlier this year regarding the use of business titles and financial certifications. IIROC says that it is finalizing the guidance, which it will issue early in 2014, to help firms supervise the use of titles and certifications.
“The broad range of certifications can be difficult for investors to navigate. We created the IIROC Glossary of Financial Certifications to help investors understand what these various certifications mean and what is required to achieve them,” said IIROC president and CEO, Susan Wolburgh Jenah.
IIROC says that it has conducted user testing on the glossary with investors at various life stages, in an effort to improve its accessibility and usability. It is also partnering with the Better Business Bureau (BBB) to distribute 40,000 promotional bookmarks to consumers across the country to raise awareness about the glossary.