Spotlight on adviser activities

The monitoring and supervision of advisers by dealer groups for FSR compliance is “patchy”, according to Tribeca chief operating officer John Prowse.

Prowse says research by Tribeca’s compliance department reveals that “some principals are doing a good job of supervising and monitoring planners and others not so much”.

The Financial Services Reform Act (FSRA) requires dealers to monitor and supervise their advisers’ activities for compliance. It obliges dealers to conduct regular desk-top audits, as well as randomly pulling files to check the advice being given to clients is appropriate.

Despite the poor record of monitoring, Prowse says dealer groups have become more effective at training their advisers for FSR compliance, both at the entry-level and continuing professional development.

“We worried 12 months ago that demand for our entry-level financial planning course would drop off as the bulk of planners completed this as an FSR compliance requirements,” Prowse said.

“However, we’re now confident we have a sustainable level of enrolments, which suggests dealers and planners are diligent about compliance training.

“It also suggests there’s either an expanding force of advisers out there or perhaps there’s a bit more turnover than we think.”

There’s also strong demand for Tribeca’s advanced financial planning diploma — which is not a FSR (PS 146) requirement.

In addition, Prowse says there are very few dealer groups that are not providing continuing professional development for advisers, which is an FSR requirement.

“There is no doubt planners are now quite well equipped from a compliance point of view, and many are intent on extending their education beyond compliance requirements.

“At the same time, because most advisers have now completed the entry-level course, we have been able to significantly ramp-up the standard of our CPD courses.”