The Investment Dealers Association is proposing rule changes that would expand proficiency exemptions designed to speed up the registration process for qualified individuals.
The IDA said on Monday that the objective of the proposed amendments is to recognize additional courses for automatic exemptions without reducing the rigour of the existing proficiency requirements, to eliminate outdated requirements and references, and to add an exemption fee.
“The recognition of other equivalent or advanced courses, foreign qualifications and training for automatic exemptions will eliminate any unnecessary delay and cost in the registration process by reducing the number of discretionary exemption applications,” it says. “They will also eliminate unnecessary duplication of effort by those who have taken equivalent courses but are then required to take recognized courses covering the same material.”
The current rules provide for automatic exemptions based on completion of certain specified courses, but they do not provide for automatic exemptions based on completion of advanced Canadian Securities Institute courses. They also do not recognize certain equivalent courses or programs administered by other learning institutions, and do not set out rewrite requirements and exemptions for several proficiency requirements.
The amendments include:
- the completion of a higher level course in a CSI program will extend the validity of a lower level course to two years (for those never approved) or three years (for those who have surrendered approval) after completion of the higher level course;
- the New Entrants Course, a supplemental course offered to those registered in other recognized jurisdictions who seek IDA approval, will be subject to the same rewriting provisions as other proficiency courses;
- The Certified Financial Planner designation conferred by Financial Planners Standards Council is recognized as an alternative to the completion of the Professional Financial Planning Course, but only for those individuals who have earned the CFP designation through the completion of the CFP exam and continue to hold the CFP designation in good standing. (It notes that the CFP designation, when first introduced, was granted to a large number of people on the basis of experience.);
- recognition that many mutual fund salespersons are engaged in financial planning while registered for mutual funds only so that, while joining an IDA firm requires upgrading of their proficiencies to include other instruments, their planning proficiencies should continue to be recognized; and
- a requirement that those who have been out of the industry for more than three years re-take the 90-day or 30-day training program required for all new registrants.
Explaining the overall effect of the amendments, the IDA says, “Of major impact is the timely approval of otherwise qualified applicants, and the saving of time and resources for all concerned. For those not automatically qualified, the discretionary power of district council remains unfettered.”
“The revision is designed to maintain consistency with similar rules under the provincial securities regulations and ensure those applying for registration or exemptions are not unfairly prejudiced by [current rules] failing to recognize their education and experience, but does not reduce the proficiency requirements for any applicants,” it says.
The revisions are published with a 30-day comment period.