Knowledge is power, but planners who were surveyed for this year’s Report Card say ongoing education and training is barely making the grade. The average score for ongoing training at the 14 firms surveyed was 6.9, down from last year’s 7.3.
One reason for the lower mark may be that firms have been holding out for more news on the Canadian Securities Administrators‘ financial planning proficiency rule, known as Multilateral Instrument 33-107. The rule, first published Feb. 15, 2001, sets out to license registered individuals who use titles with the word “planner,” “advisor” or “consultant” in combination with “financial,” “retirement” or “wealth.” The CSA was hoping to implement the rule by Feb. 15, 2002, but the Conservative leadership race put the issue on the back burner in Ontario, the province leading the CSA’s charge.
Now that Janet Ecker has been appointed Ontario’s finance minister, regulators expect the rule to be back on the legislative agenda. If it’s approved, the result would be a six-hour financial planning proficiency exam and continuing education requirements for Ontario-registered advisors. Two years of work experience would also be needed before planners and advisors would be eligible to get their licences. Other provinces are expected to follow suit.
In the meantime, some firms have created their own programs.
Assante Capital Management Ltd. is in the process of updating its own financial planning courses through its internal training program, Assante Academy.
“We are about to look at the financial planning process in more detail. I think we have a fair number of components already available; we just need to knit it together to support any proficiency exam that may come upon our advisors,” says April Aandal, vice president of the academy, in Winnipeg.
For a nominal fee, Assante advisors now can take self-directed courses on the company’s internal Web site. Their hours are clocked and a pass or fail grade is given at the end. However, one Ontario advisor says current training is geared toward established advisors: “The training of new people is weak.”
New advisors at Winnipeg-based Investors Group Inc. undergo a mandatory nine-week intensive training program.
“We have ongoing training to support everybody, from rookie to retirement. Our proprietary training platform combines classroom training, conferences and technology formats such as CD-ROMs,” says Sharon McCormick, IG’s vice president of corporate training and development. IG advisors seem to agree: they rated the firm’s ongoing training an 8.2.
IG absorbs all training costs and expects its planners to continue their education at all levels. For planners with more than $20 million in assets under management, IG has developed a coaching program, designed to provide a forum for advisors to discuss issues such as succession planning.
“We’ve always been known for our rookie training, and in the past couple of years our programs for more tenured folks are gaining recognition as well,” McCormick says. IG also requires that within five years of joining the firm, planners must earn the certified financial planner designation.
Firms that were rated below 6.0 for ongoing training in the report card include: London, Ont.-based Cartier Partners Financial Services Ltd. (5.7); CMG-Worldsource Financial Services Inc., based in Markham, Ont. (4.7); Toronto-based Money Concepts (Canada) Ltd. (5.4); and W.H. Stuart & Associates, based in Unionville, Ont. (5.4).
Advisors who were polled expressed a common theme: that training is a scarce commodity. It’s there at the beginning but difficult to get down the road. “They came out two years ago and did a presentation, but I haven’t heard from them since,” says an Alberta CMG advisor. Says a Money Concepts planner in Ontario: “It’s been a long time since I’ve seen any training.”
Words that were used to describe Cartier’s training included “limited” and “nothing.” One Cartier advisor from Ontario observes, “[Training] has been on hold for awhile, but it seems to be picking up.”
Advisors at PFSL Investments Canada Ltd., based in Mississauga, Ont., gave that firm the highest mark in ongoing training (9.1). While PFSL has a reputation for being recruitment-focused, it does have its own school. PFSL University gives courses and tests its advisors to help them gain more industry knowledge. But, of the 31 PFSL planners surveyed, only two held a designation — the CFP. By contrast, all 31 Investors Group advisors who were surveyed held the CFP. IE