“Investors can easily compare the various certifications, which will help them better understand the qualifications an advisor or potential an advisor is holding out,” said Lucy Becker, vice president of public affairs at IIROC. “We encourage investors to do their due diligence when choosing advisors.”
The glossary was created in follow-up to a survey distributed among IIROC-regulated firms to better understand the use of business titles and financial designations by licensed professionals, and a series of one-on-one interviews conducted with investor representatives. Prior to the launch, the tool was tested, receiving positive feedback from investors.
“It (the glossary) promotes greater transparency and understanding to help investors make more informed decisions,” said Becker. “Investors may be more likely to have realistic expectations about their advisor’s expertise.”
As part of IIROC’s suite of investor education tools, the glossary can be used in tandem with the AdvisorReport service, which provides advisors’ educational background and disciplinary history.