Some Ontario advisors are welcoming a new private member’s bill that, if passed, would protect consumers from receiving shoddy financial advice and weed out the wheat from the chaff.
“Overall, I think it’s a good thing to streamline regulation, so that (eventually) every province is on the same page,” says Toronto advisor Charles Jiang of Queen Financial Group Inc. “...Especially to the protect the investors.”
Announced Tuesday by Liberal MPP Rick Bartolucci, the Financial Advisors Act, 2014
is the first legislation in Ontario that would govern the profession.
"Doctors, lawyers, engineers, accountants and many other groups are regulated as a profession,” said Greg Pollock, President and CEO of Advocis, in a release. "It’s time for those who are critical to the financial well-being of so many Ontarians to be regulated as well.”
The legislation – drafted with help from Advocis – intends to eliminate the ability for just anyone to claim they are a financial advisor and ensure they are meeting consistent proficiency standards, adhering to a code of conduct, satisfying continuing education requirements, and maintaining errors and omissions insurance.
Under the act, financial advisors would have to be registered and any advisor that breaches the act would face financial penalties or have their licenses revoked. An “office of the director” would administer the act – addressing complaints, inspecting registrants and completing investigations. (continued.)