New Requirements for Registrants Holding Themselves Out as
Financial Planners
The Saskatchewan Securities Commission will be making a Commission regulation
adopting Multilateral Instrument
33-107 Proficiency Requirements for Registrants Holding Themselves out
as Providing Financial Planning and Similar Advice.
The Instrument applies to individuals and firms registered to trade or
advise under securities laws. It requires individual registrants who hold
themselves out under the titles specified in the Instrument to satisfy
a proficiency standard. When used by securities registrants, these titles
convey the impression that the registrant is offering financial planning
or similar personal financial advice.
Registered firms that use the titles specified in the Instrument as business
names or use a restricted service description are required to provide
those advertised services, and to provide them through officers, employers
or agents who meet the proficiency standard.
Click
here to link to Frequently Asked Questions about Multilateral Instrument
33-107 on the Ontario
Securities Commission's website.
Transitional Grandfathering Relief
The Instrument will come into force on February 15, 2002. The Instrument
provides that individuals who have completed one of the financial planning
education programs or testing processes specified in the Instrument or
who enroll in a specified program before March 31, 2001 and in most cases
complete it no later than March 31, 2003 will not need to write the Financial
Planner Proficiency Examination ("FPPE") . This transitional
relief will expire on March 31, 2004.
Because the Saskatchewan Commission will be implementing the Instrument
several months after the Ontario Securities Commission, it will
issue a general exemption order to extend these grandfathering dates by
three months until June 30.
Life Insurance Agents
The same restrictions apply to titles and service descriptions used by
licensed insurance agents and agencies. In Saskatchewan, the Life Insurance
Council of Saskatchewan has had by-laws in place for several years which
impose proficiency standards on life agents who hold themselves as out
as financial planners and under similar titles. The Life Insurance Council
will be amending these by-laws to make them parallel with the provisions
in the Instrument. However, the by-laws will not permit life licensees
to hold themselves out using one of the restricted titles until they have
completed either the FPPE or one of the alternate courses referred to
above.
The Proficiency Standard
The proficiency standard created by the Instrument consists of:
- passing the FPPE sponsored by the CSA and insurance regulators;
- two years of insurance or securities industry experience in the last
five years; and
- commitment to an approved continuing education program.
The FPPE will be identical for both securities registrants and insurance
licensees and will be administered on a national basis.
Status in Other Provinces
The Instrument will be adopted as a rule in Ontario and Nova Scotia and
a policy in other participating jurisdictions represented by the CSA.
While insurance and securities regulators in British Columbia, Alberta
and Manitoba were represented on the CSA Committee the Instrument is not
being adopted in those jurisdictions. The British Columbia Securities
Commission will continue to apply its existing policy dealing with financial
planning proficiency requirements. It will include the FPPE as one of
the options available for satisfying the requirements of the policy.
The Commission expects to make the Commission regulation adopting the
new Instrument within the next few weeks. The Commission regulation is
subject to the approval of the Minister of Justice, and, if approved,
should be in force by May 31, 2001.
March 21, 2001
Contact:
Barbara Shourounis
Director
(306) 787-5842
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