The Joint Forum of Financial Market Regulators has released practice standards for the sale of products and services by financial services intermediaries.

The Principles and Practices for the Sale of Products and Services in the Financial Sectors articulate standards of professionalism and fair conduct that Canadian consumers should be able to expect in their dealings with financial services intermediaries. They consist of eight principles that are focused on the core values of integrity, honesty, professionalism, clarity and putting clients’ interests first.

The development of the new standards was led by the Joint Forum with the assistance of an industry task force and industry consultation. “The collaboration resulted in broad and practical standards which dovetail with the existing codes of conduct of industry associations and can be easily understood and measured,” said Jim Hall, chairman of the Joint Forum Sub-Committee on Principles and Practices for the Sale of Products and Services in the Financial Sector and Superintendent of Insurance and Financial Institutions of the Saskatchewan Financial Services Commission.

Hall added that the standards “will result in benefits for consumers without imposing burdensome regulatory requirements on financial intermediaries.”

“Members of the Joint Forum believe that consumers are entitled to the same protections, regardless of the type of financial product or service they purchase, the means through which they purchase it, or the regulatory regime that applies to the transaction,” said David Wild, chairman of both the Joint Forum and the SFSC. “With that goal in mind, the Joint Forum set out to develop a common language to express minimum standards that should apply to the conduct of all financial services intermediaries in their dealings with consumers.”

The Joint Forum also released a guide which interprets the new standards for consumers. It is meant to help simplify and clarify financial services transactions for consumers.

The Joint Forum says the standards reflect industry best practices, and it is is urging their voluntary adoption by industry associations and by intermediaries not attached to any association.

IQuebec regulators participated solely as observers in the project and have not formally endorsed the standards.

The Joint Forum was founded in 1999 by the Canadian Council of Insurance Regulators, the Canadian Securities Administrators, and the Canadian Association of Pension Supervisory Authorities. It also includes representation from the Canadian Insurance Services Regulatory Organizations.