A bill to regulate advisors has been floated in the Ontario legislature. If passed, the Financial Advisors Act, 2014, would tighten the rules surrounding the profession.
“The current system includes a series of disconnected rules that evolved over time and fall under various government ministries,” says Sudbury, Ont. MPP Rick Bartolucci who tabled the private member bill. “While well intentioned, the status quo is a mishmash of policies that can allow unscrupulous financial advisors to slip through the cracks.”
Highlights of the bill include:
• an ‘Office of the Director’ to administer the Act;
• director would have the power to address complaints, inspect registrants and complete investigations;
• power to establish code of ethics;
• financial advisors would have to be registered; and
• financial penalties and license revocation for non-compliant registrants.
“We welcome this Bill, and hope it will be quickly passed,” states Greg Pollock, president and CEO of Advocis. “It is a win for everyone. For consumers, it will provide greater assurance that they are dealing with advisors who are truly accountable. For the industry, it will maintain public confidence and trust in our profession. And for government, it will establish an effective system of regulation that gets rid of bad advisors and preserves consumer access to highly qualified advice.”