The past 10 years have been witness to some significant progress in many areas of the Canadian financial services industry. But one thing that has stubbornly avoided any change is the business of selling financial planning services. Now, it’s time for regulators to correct that oversight.

It was back in December 1999 that the Ontario Securities Commission last moved to bring some long overdue regulation to the financial planning business by proposing a rule that would have restricted the use of the term “financial planner,” along with similar job titles, and imposed proficiency requirements on those practitioners who adopt these labels.

The industry fought that effort tooth and nail. Ultimately, the lobbyists won out.

As a result, the issue remains unresolved today (except in Quebec). Anyone can get into the financial planning business. Average consumers who seek out a little help with their finances have no idea whether they are dealing with someone with years of training and experience or with someone who just had a shingle and a few business cards printed up.

There are a variety of planning accreditations that aim to signal proficiency, but many people in the financial services industry would be hard pressed to explain the differences among them. It is absurd to expect consumers to figure it out.

This obvious failing was highlighted once again in a report published in December 2009 by the Public Interest Advocacy Centre — almost 10 years after the launch of the OSC’s last effort to bring some standards to the planning business — in which the PIAC calls for provincial regulation. Its reasons are familiar: the report cites consumer confusion over the use of these titles, and the possible conflicts of interest that may arise when planning becomes the purchasing of investments.

Last year, the Investment Industry Regulatory Organization of Canada did address this issue, drafting a rule that would bring at least some oversight to the financial planning activities of its members. But that rule has yet to be enacted, and a spokesperson for the OSC says that it is still being considered.

Passing the proposed IIROC rule would be a start. But regulators need to draw the line, and set some standards, to define who is properly qualified to provide financial planning to the public.

Hopefully, it won’t take another 10 years to figure that out.