Noting that individuals can use the title “Financial Planner” without having to meet any minimum proficiency standards, the MFDA has released for comment proposed amendments to MFDA Rule 1.2.5: Misleading Business Titles Prohibited
Under the proposed new rule, the use of the title “Financial Planner” would be explicitly prohibited, unless approved by the MFDA or if the person applying for approval has obtained one of several academic or professional requirements that demonstrate competency in financial planning. General qualifications that MFDA staff would look for include education in comprehensive financial planning, exam- or course-based certifications, and completion of relevant continuing education.
The proposed new rule would also enable MFDA staff to permit the use of other designations, in cases where an individual can demonstrate that such designations meet the core criteria deemed appropriate for use of the title “Financial Planner.” In essence, this would allow the use of new designations that may be established in the future, with the qualifications to be a “Financial Planner” being the foundation.
“The proposed amendments will clarify and enhance existing regulatory requirements, establish minimum proficiency standards for use of the title ‘Financial Planner’ by MFDA Approved Persons, and lessen the potential for investors to be misled as to the qualifications of individuals using this title,” the MFDA said in its proposal.
The suggested changes have been filed for approval with the different member provinces, regulators, and authorities. Comments are invited from stakeholders until Jan. 25.
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