Call grows to standardize advisor titles

Call grows to standardize advisor titles

Call grows to standardize advisor titles

Industry titling continues to be a primary area of confusion.

"These investor stakeholders  ... urge the CSA to standardize the professional titles and designations that advisors may use so as to ensure they more accurately reflect the scope of an advisor’s services and do not denote expertise that the advisor may not have."

Some suggest that the use of the title “Financial Advisor” by a product salesperson, who is
trained solely to deliver trade suitability rather than financial planning and/or ongoing investment
management advice, has resulted in confusion and a distinct disconnect between the level of
service many investors expect from their financial advisor and the actual service provided.

"These investor stakeholders therefore submit that title and holding out restrictions should be put
in place to allow the public to clearly distinguish between those who offer advice limited to trade
suitability and those who provide more extensive advice ommissions," says the CSA update.


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4 Comments
  • Doug McCaw 2013-12-17 11:45:18 AM
    About time
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  • Kevin Cahill 2013-12-19 7:56:45 AM
    Completely agreed Doug! We need more passionate people to stand up and say enough is enough. Consumers know the difference between a general practitioner doctor and an oncologist yet few know there is a huge difference between someone who has a mutual fund licence and someone who has gone on to get their Certified Financial Planner
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  • Meredith Swanson CPCA 2013-12-20 7:25:48 AM
    I think that the most important point here is the need for formal education for all of the advisors whether it is CFP or CLU or just a good education program by the insurer. Also, each advisor should be a member of Advocis.
    Would you go to a doctor whether a GP or oncologist if they didn't belong to the Canadian Medical Association or at least the provincial counterpart? Yet you can get a licence to sell life insurance or sell mutual funds with very little training. I don't think you even need a licence to handle money products like GIC's, etc. and there is no need to be associated with an industry professional association that works on behalf of the public and the professional.
    Sun Life does a very comprehensive study of the proposed candidate before bringing them on board. I know of an advisor who failed to meet Sun Life's requirements in terms of goals and personality traits yet got hired by an other company. She absolutely broke nearly every part of the code of ethics provided by Sun Life.
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