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With a growing population of seniors, industry regulators who oversee both the brokerage and mutual fund dealers are keeping a close eye on the financial designations and business titles that are being used by the financial community, particularly those targeting senior investors.

"We have a population that is increasingly getting older, starting to accumulate a lot of wealth and as a result can become a prime target for financial fraud," says Marshall Beyer, director of regulatory relations and academic standards at the Canadian Securities Institute (CSI). "Some of these seniors might have mental incapacitation issues or might not be sophisticated in understanding complex financial issues. As a result they become an easy mark."

According to Statistics Canada, as of 2014, 15.7 per cent of Canadians were aged 65 or older. That is up from 12.9 per cent a decade ago.

The protection of seniors in the financial community is a strategic initiative and area of focus for two industry regulators.

In a recent Investment Industry Regulatory Organization of Canada (IIROC) bulletin, the regulator stated that examiners will review any business titles that convey an expertise in senior-related issues or retirement planning, to ensure that any individual claiming such expertise is appropriately qualified and competent.

"We want to protect all investors, including seniors and those most vulnerable," said Paul Riccardi, senior vice-president of member regulation at IIROC, in a statement.

"Seniors represent a significant portion of the investing public so we want to ensure that they are not misled by titles that could give the impression of expertise that an adviser may not have."

After conducting a member survey in 2011 and investor focused research in 2012, IIROC created a glossary of financial certifications to help consumers navigate through the large number of certifications, and help them understand what various certifications mean and what is required to achieve them.

"At the end of the day, our focus is on ensuring that titles and designations are used appropriately, that investors understand what services they are receiving and what expertise and qualifications underlie the titles and designations, and that IIROC-regulated firms and registrants are abiding by the rules," Mr. Riccardi says.

The Mutual Fund Dealers Association of Canada (MFDA) has a similar initiative. In the 2015 MFDA compliance and member education bulletin, it states that the regulator continues to focus on protecting seniors in its compliance and enforcement activities. Dealer firms' supervisory activities should also consider issues affecting senior investors and other vulnerable clients. In particular, titles and advertising and marketing materials that target seniors should be subject to a thorough review to ensure they are not misleading to investors.

"All designation programs are not created equal," says Greg Pollock, president and CEO of Advocis, the Financial Advisors Association of Canada. "This reality places seniors at a greater risk. While bad advice is never good, for seniors the potential harm is magnified as they generally don't have the means or time to recover from the financial loss that is often associated with bad advice."

There is no official "senior" designation in Canada's financial services industry. Many professionals can take weekend workshops or online courses that could result in the use of various job titles and certifications related to financial planning for seniors.

CSI offers relevant certifications and designations, including the Certificate in Retirement Strategy. The course is a certificate that is generally used as a stepping stone to a more advanced designation, and certificate holders are not permitted to use the acronym CRS on their business cards, says Mr. Beyer.

"We make a clear distinction between our designations and certifications, says Mr. Beyer. "The certifications do not have an ongoing continuing education element to them and therefore should not be held in the same category as a designation."

Mr. Pollock has similar concerns about what is being advertised to the investor community.

"While our designations take years to achieve, other operators are setting up day-long programs granting specialist designation titles for addressing seniors' issues," says Mr. Pollock. "No one can become a specialist over a weekend and to pretend otherwise is disingenuous. We share the concerns that the [regulators] have raised – consumers, inclusive of seniors, must not be lulled into a false sense of security based only a title or designation granted after a weekend of seminars."

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Checking designations

Investors should take the time to confirm if a financial adviser has completed the designations or credentials they advertise to the public. You can contact each organization online or by telephone.

While the certified financial planner designation (CFP) is commonly known within the industry, there are several financial designations and certificates your financial adviser could list as credentials that are targeted to retirement and elder planning.

  • Elder Planning Counsellor (EPC) – offered by the Canadian Initiative for Elder Planning Studies
  • Registered Retirement Consultant (RRC) – offered by the Canadian Institute of Financial Planning
  • Certified Retirement Counsellor (CRC) – offered by the International Foundation for Retirement Education
  • Certified Professional Consultant on Aging (CPCA) – offered by Age-Friendly Business. The Canadian equivalent of the Certified Senior Advisor (CSA) in the U.S.
  • Certified Retirement Strategy – offered by the Canadian Securities Institute. This is a certification course only and cannot be advertised as a “CRS” designation on adviser marketing material.

In addition, those working with a financial adviser should always confirm if their adviser is a registered representative by checking the Canadian Securities Administrators National Registration Search, a free online search tool. For telephone inquiries, contact your local regulator directly.

Clare O'Hara

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