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By Staff | September 10, 2008 | Last updated on September 10, 2008
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(September 10, 2008) The proposal by the Investment Industry Regulatory Organization of Canada (IIROC) to define and regulate financial planning continues to receive criticism, this time from the Independent Financial Brokers of Canada (IFB).

The organization says that while they “feel it’s important to distinguish between those who provide financial planning services in the context of their work as responsible financial advisors, and those who hold themselves out as a ‘Financial Planner’,” it’s not IIROC’s place to determine what constitutes a financial planner.

“We suggest a more useful approach, particularly as time goes on and specific courses and designations may become outdated or irrelevant, is to provide language of a more general nature in the rule,” said the IFB in a release.

One area of concern is that dealers will suddenly be accountable for supervising insurance-related business done by advisors who offer planning on both the insurance and securities sides of the industry.

To avoid confusion, the IFB wants IIROC to reword the rule and make it clear that financial planning activities related to the business of insurance are exempt.

The IFB also thinks IIROC’s rule should be referred to the Joint Forum of Financial Market Regulators. “Without the national, multidisciplinary approach that this body can bring, consumers of financial services and participants alike will experience confusion,” the organization explains.

The advisor advocacy group was disappointed to hear that their request for a deadline extension to the comment period was denied. “In our view, 30 days is generally too short a comment period to be effective in receiving comments from interested parties,” says the IFB. “We have been pressed to fully assess the potential impacts of this rule on our membership.”

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MFDA starts hearings into Farm Mutual

(September 10, 2008) The Mutual Fund Dealers Association of Canada began its disciplinary proceedings against Farm Mutual Financial Services (FMFS) on Wednesday.

At the hearing a motion was presented by the FMFS challenging the SRO’s jurisdiction to regulate the distribution of exempt securities by its members in Ontario.

The hearing panel reserved its decision regarding the motion, as it waits for written submissions from the parties involved.

(09/10/08) staff


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