Title Regulation and FP Canada™ response to the Chartered Financial Planner designation

Since 2022 the regulation of “financial advisor” (FA) and “financial planner” (FP) titles began taking effect across provinces within Canada, starting in Ontario.

This legislation works to create minimum standards for individuals using the Financial Planner and Financial Advisor titles, so that consumers can have clarity and confidence that the professional they are dealing with has a minimum standard of education, is being actively supervised by an approved credentialing body, and is subject to ethics requirements and a complaints and discipline process. The regulation also grants enforcement authority over individuals for unapproved use of these restricted titles.

However, a report detailing the decision by The Canadian Institute of Financial Planning (CIFP) to reestablish the Chartered Financial Planner® designation in Ontario has FP Canada™ worried, as the Financial Services Regulatory Authority of Ontario (FSRA) has approved the designation as a credential for “Financial Planner” title use.

“We are deeply concerned by the similarity of the name of this newly approved credential to the CERTIFIED FINANCIAL PLANNER® credential and its proximity to our protected trademark. More broadly, we are concerned about what the decision to approve this credential by FSRA means for the efficacy of the Title Protection Framework and the increased confusion for consumers as to who qualifies to use the title “Financial Planner.”

CFP® certification is widely considered to be the gold standard for financial planning in Canada and around the world. We have already notified the Government of Ontario and FSRA about our concerns in writing.

At its core, Title Protection was intended to provide clarity and confidence to consumers that someone calling themselves a “Financial Planner” has met the high standards of education and ethics needed to help consumers achieve financial well-being. Since the implementation of Title Protection in Ontario in March 2022, FP Canada has engaged extensively with FSRA to ensure the framework operates in the best interest of consumers. We believe FSRA’s approval of the Chartered Financial Planner designation provides an example of FSRA’s implementation of the Title Protection Framework falling short of its promise to consumers.

The lack of transparency has left consumers with the impression that all the Credentialing Bodies and the credentials they award are created equal – which is simply not true.

To restore consumer confidence in the Title Protection Framework, we believe these issues must be addressed. As an organization, we continue to believe in the principles of Title Protection for consumers, and the need to ensure all those who use the title “Financial Planner” meet the highest standards of competence and professionalism.

FP Canada™ is considering all options available to it given these concerns.”  - Tashia Batstone, MBA, FCPA, FCA, ICD.D, FP Canada President & CEO

As a consumer, regardless of the Title Protection outcomes, it is still very important to complete your own due diligence on the professionals you work with, what their certifications mean and the Crediting Bodies who issue them. Be sure to ask your professional questions about their continuing education and what codes of ethics they adhere to.