Advocis | A Message from the Chair of Advocis
Over the last few years, Advocis, The Financial Advisors Association of Canada, has developed a model to professionalize the industry, thereby improving the regulation with which all advisors, including life insurance agents, must comply.
The Advocis Professions Model has been discussed with key Cabinet Ministers and regulators in the four western provinces and Ontario. All have responded very favourably to Advocis’s proposal because they see it as an industry-led approach to addressing consumer-protection issues such as:
- who can call him or herself a “financial advisor”
- establishing guidelines around qualifying requirements such as proficiency, continuing education and maintenance of E&O insurance, and
- consumer redress through a disciplinary process similar to other professions that use members of the profession and public appointees by the province to serve on panels to review advisor conduct.
This proposal for self-regulation would help protect consumers from fraudsters such as Earl Jones since these individuals would no longer be able to hold out as financial advisors. Consumers would be able to confirm the credentials and disciplinary history of anyone who calls him or herself a “financial advisor” or “financial planner.” Furthermore, consumers would have better knowledge of the background of the person with whom they are dealing or about to engage. The Advocis model also refers to “accredited organizations” like Advocis and others that have met the key qualifying criteria.
With this model, there is also the advantage of future proposed regulations being referred to the new body, rather than being announced without sufficient consideration. An example of this is the Canadian Securities Administrators’ consultations on eliminating embedded commissions and imposing a statutory fiduciary standard, which would eventually apply to all advisors if they are successful. While the CSA is taking its time to review these issues, they are far from over.
Recently, the Minister of Finance in Ontario committed to examining new standards and tailored regulation for financial advisors and planners as part of his mid-year Economic Statement. At the Advocis annual Queen’s Park Legislature Day last April, all three of the political parties in the Ontario Legislature endorsed Advocis’s approach after 80 members met individually with 55 MPPs to discuss the details of the proposal. Similar activities have taken place in B.C., Alberta and Manitoba, where the response to Advocis’s Professions Model has been very favourable.
By proposing a more appropriate and effective form of regulation, Advocis is taking a strong leadership role in defending our rights to practice as advisors. This is why I have devoted a significant amount of my time to serve as Chair of Advocis. I need you to support Advocis by encouraging your advisors to join the Association that is doing the heavy lifting on these important issues that will shape our future.
Learn More: http://www.advocis.ca/form/mga/find-out-Advocis.aspx?lid=BF
Harley Lockhart, CFP. CLU. CH.F.C.
Chair, Advocis