Securities Law

BCN 2001/06 - Financial Planning [BCN - Rescinded]

Published Date: 2001-02-16
Effective Date: 2001-02-15

The Commission is not proceeding to make Multilateral Instrument 33-107 Proficiency Requirements for Registrants Holding Themselves Out as Providing Financial Planning and Similar Advice as a Commission Rule.  Along with most other CSA jurisdictions, we published the proposed rule for comment on December 6, 1999 at NIN#99/46.  The rule would have required a registered individual who wishes to hold himself or herself out as a financial planner, or under a similar title, to pass a new “Financial Planning Proficiency Exam.”  Individuals who have met certain existing financial planner proficiency standards would have been exempted from the new requirement.

After reviewing the comments and further considering the regulation of financial planning by registrants, we have concluded that at this time it is more appropriate to reconsider the provisions set out in section 3.6 of LPS 3-22 Registration Requirements, which establish the current standards on financial planning for British Columbia registrants.  Some other jurisdictions, including Ontario and Saskatchewan, are proceeding with MI 33-107.  Accordingly, dealers who are also registered outside of British Columbia should review the requirements of other provinces in which they operate to ensure they are in compliance with the relevant rules. 

Within the next few months we expect to publish for comment revisions to section 3.6 of LPS 3-22 to amend the current proficiency qualifications to, among other things, include the new Financial Planning Proficiency Examination as one of the proficiency standards that British Columbia registrants can choose if they want to be financial planners.  In addition, we expect to propose additional client disclosure requirements for all registrants providing financial planning services.  Currently, LPS 3-22 requires only limited disclosure where the financial planning is done for a fee.  We expect to expand on the disclosure required, and to extend it to all registrants providing financial planning advice. 

We have been working with the Insurance Council of B.C. to develop a harmonized approach to proficiency and disclosure of financial planning activities in B.C., and expect that the proposed revisions to LPS 3-22 will reflect a similar approach from both organizations so that salespersons who are dually registered to sell both securities and insurance can more easily comply with the requirements of both regulators.

Questions

Questions relating to this Notice or the proposed rule amendments may be referred to:

Noreen Bent
Senior Legal Counsel, Policy and Legislation
British Columbia Securities Commission
(604) 899-6741
or (800) 373-6393 (in B.C.)
nbent@bcsc.bc.ca

Wendy Sullivan
Chief Examiner
British Columbia Securities Commission
(604) 899-6752
or (800) 373-6393 (in B.C.)
wsullivan@bcsc.bc.ca


DATED at Vancouver, British Columbia on February 15, 2001.

 


Douglas M. Hyndman
Chair

Ref: NIN#99/46

This Notice may refer to other documents.  These documents can be found at the B.C. Securities Commission public website at www.bcsc.bc.ca in the Commission Documents database or the Historical Documents database.