Canadian investors need better assurances that the financial advisors they are working with are properly qualified to manage their money, says Toronto-based Advocis.
The professional association of financial advisors notes that in the current environment, anybody can set up shop and call themselves a financial advisor, regardless of their training, education or ethics.
Advocis says this puts Canadians at risk as they take financial advice from people who may not necessarily be “experts.”
The association is proposing the implementation of a professions model for advisors that will tightly regulate the use of the title “financial advisor” and require membership in a recognized professional association.
“We want to raise the professional bar and protect the wealth of Canadians by ensuring that when they turn to a financial advisor, they are turning to a person they can trust. If that trust is broken, we want Canadians to have a reliable course of action,” says Greg Pollock, president and CEO of Advocis.
The model proposed by Advocis would require all financial advisors to meet proficiency standards, regularly update their education and training, and adhere to a code of professional and ethical conduct.
For Canadian consumers, it would also provide easy access to review an advisor’s credentials and complaints history, and offer a complaints mechanism.
“Membership in a professional association for financial advisors will help protect consumers from unscrupulous acts,” says Pollock.
“It will give Canadians assurances that they are relying on someone with professional credentials and ethics, and if they have doubts about their advisor, they will be able to easily do a background check that will enable them to make informed decisions about the individuals they are entrusting with their money,” he explains.
For more information about the professions model proposed by Advocis, visit www.advocis.ca/raisethebar.