Changes expected for Ontario’s title protection as provinces harmonize

While FSRA established minimum standards for the financial advisor (FA) title for the first time, Loke said the regulator received input that the “proficiency standard needs to go up,” as do standards for conduct and credentialing bodies’ disciplinary processes.

Ontario’s title protection has been criticized for its multiple credentials and, when it comes to the financial advisor (FA) title, its product-based approach. FSRA officially approved the Canadian Investment Regulatory Organization (CIRO) as a credentialing body last year, meaning all registered representatives and mutual fund dealing representatives can call themselves FAs — though FSRA’s approval also effectively leveraged CIRO’s enforcement powers.

FSRA has also fielded title protection questions from firms outside Ontario that have financial professionals who serve Ontario clients, Loke said. That situation is further complicated as other provinces develop their own title protection regimes.

To avoid negative fallout, FSRA has prioritized discussions with other jurisdictions, Loke said, before making any changes to Ontario’s regime. “The more we add on, on an Ontario-only basis, the less capacity we have, and the more complicated it becomes, to harmonize with others,” he said.

Saskatchewan’s title protection includes education requirements for financial advisors related to financial planning. But those rules have been in draft form for three years while the province assesses how the regime shakes out in Ontario and other provinces. New Brunswick’s draft rules have been published for a year, and a consultation in Manitoba on whether to adopt title regulation legislation was completed a year and a half ago, with no updates since.

“We want to make changes that are frankly [communicated], so that if there is an increase in proficiency, everyone will know what that means,” Loke said, referring to the potential for the provinces to work together and make joint announcements.

FSRA’s forthcoming review of title protection may help jumpstart the progress. The regulator’s priorities, outlined in its 2024–27 business plan, include ensuring the “effectiveness of the title protection framework,” and a key activity under that priority is publishing a report evaluating the framework and exploring “possible future enhancements.”

FSRA previously told this publication that it was committed to publishing that report, which will include an evaluation of proficiency standards, by March 31.

Since the regulator made that commitment, it appointed new CEO Dexter John. (Previous CEO Mark White, who presided over the implementation of Ontario’s title protection framework, departed in July 2024, a few months after controversy arose over a FSRA-approved credential for the financial planner title.) In an emailed statement, FSRA said: “Following the conclusion of the provincial election and the caretaker period, as well our leadership change, FSRA has no immediate updates but will have more to say in the coming weeks and months.”

The Advocis symposium’s regulatory panel also discussed the potential for harmonized insurance rules and a national registry for insurance licensing, similar to the national registration database for securities registration. The insurance industry currently has a harmonized database for disciplinary actions.

When asked about timelines for those potential changes, Loke said the ideas were new, “and I would ask for your understanding as we grapple with this…. We want to get it right, and we want to have [other provinces] on board.”

Investment Executive and sister publication Advisor.ca were media sponsors of the event.