Investors are best served when they know who they are dealing with and have confidence in the advice and level of service they can expect. Most financial representatives in Canada operate within a regulatory framework that ensures a high level of certainty and confidence for investors. For example, financial advisors in the mutual fund industry are well-regulated through self-regulatory organizations (SROs) such as the Mutual Fund Dealers Association, the Investment Industry Regulatory Organization of Canada, the Chambre de la sécurité financière, and provincial securities commissions.
Investors have less certainty and less protection when they receive financial planning services from providers operating outside of a regulatory or professional framework. The Ontario ministry of finance is investigating the merits of more tailored regulation of financial planners to address concerns in areas such as proficiency, quality standards and potential conflicts of interest.
IFIC supports further strengthening investor protection with legislation that would establish formal professional oversight of those financial planners who are not already being regulated by SROs or provincial securities commissions.