The Financial and Consumer Services Commission of New Brunswick recently approved two Rules to support new legislation that will require professionals who use the titles “financial advisor” and “financial planner” to meet minimum educational standards to be credentialed.
The Commission approved the Rules following a 90-day public consultation period in 2024. The Rules are expected to come into effect following Ministerial consent and upon the proclamation of the Financial Advisors and Financial Planner Title Protection Act, expected on January 1, 2026.
Under the Rules, individuals who choose to use the financial advisor or financial planner title will:
- Need to hold an approved credential from a Commission-approved credentialing body.
- Be required to meet minimum standards of education.
These requirements will be phased in over a multi-year period. The Commission, which will administer the legislation, has posted the Notice of Adoption and the Rules (TPA-001 General and TPA-002 Fees) to provide those currently using these titles ample time to prepare.
It is providing transition periods for individuals using these titles immediately before January 1, 2026 who do not hold a Commission-approved credential. The transition periods to comply with the new framework will be two years for financial advisors and four years for financial planners.
The Rules also set out what credentialing bodies will need to prove before being credentialed, including:
- Effective governance structure and administrative policies and procedures that serve the public interest.
- The necessary expertise, resources, policies, procedures and administrative practices to effectively administer and maintain a credentialing program.
- A code of ethics and professional standards for its officers, directors and employees that serve the public interest.
- The necessary expertise, resources, policies, procedures and administrative practices to effectively oversee the conduct of individuals holding approved credentials it has issued.
- The ability to oversee the conduct of individuals holding approved credentials in English and French.
Additional details on the credentialing body approval criteria, guidance and process will follow. More information on the Act can be found here.
The Rules and the Act will enhance consumer and investor protection by providing New Brunswickers clarity and confidence when working with professionals holding these titles. Currently, the titles “financial advisor” and “financial planner” are unregulated in New Brunswick, causing confusion among consumers and investors.
Once the framework is in place, New Brunswickers will be informed of the benefits of working with a professional that uses the title financial advisor or financial planner when looking for someone to give them financial advice.