That's what Greg Pollock, the President and CEO of Advocis, The Financial Advisors Association of Canada, says about a proposed new bill to regulate financial advisors in Ontario. Bill 157, proposed by Ontario Liberal MPP Rick Bartolucci, passed first reading on February 18, 2014. Bill 157 defines a "financial advisor" as a person who engages in the business of providing financial advice. "Financial advice" means advice on investment, financial risk management or financial risk mitigation matters that identifies a client's financial needs, risks or objectives and establishes strategies to address them.
Bill 157 sets out matters involving, among other things,
- prohibitions regarding practice
- registration matters
- complaints, inspection and discipline
- conduct and offences
Who is exempt
Bill 157 states the Act does not apply to a person who is:
- authorized to practise law in Ontario.
- licensed under the Public Accounting Act, 2004
- a member of the Certified General Accountants Association of Ontario
- a member of the Society of Management Accountants of Ontario
- a registered under the Real Estate and Business Brokers Act, 2002
- a mortgage broker as defined in the Mortgage Brokerages, Lenders and Administrators Act, 2006
- registered under the Registered Insurance Brokers Act.person or class of persons exempted from the application of this Act by the regulations
- a person or class of persons exempted from the application of this Act by the regulations
Bill 157 also states the Act does not apply to a person who deals in securities that are exempt from the prospectus requirement under section 73 of the Securities Act (Ontario). This means, for example, registered dealers.
The Ontario Ministry of Finance recently begun a consultation process to assess whether a new regulatory scheme for financial planners is warranted and has engaged in initial roundtables with stakeholders.
Advocis' video about Ontario's proposal to regulate financial advisors is set out below as well as some articles from certain pubications.
Advocis Video – Greg Pollock Speaks about New Bill to Professoinalize Financial Advice.
Globe and Mail Article – Ontario MPP Seeks to Regulate Financial Advisors
Toronto Star – Proposed bill would regulate financial advisors in Ontario
Investment Executive – Private member's bill proposes new regulatory body to levy penalties and revoke licenses
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