The Financial and Consumer Services Commission of New Brunswick (FCNB) has produced resources to explain the differences between financial planners and financial advisors to New Brunswickers. You can find their resource here.
Unfortunately, the requirements for financial advisors under FCNB’s framework do not reflect what Canadians expect. In 2023, FAIR Canada published the results of an investor survey showing that over 90% of Canadian investors agree that a financial advisor should be proficient in all core areas of personal finance, and over half strongly agreed. New Brunswick’s title protection framework does not deliver on that expectation. As noted in FCNB’s resource, a financial advisor is only required “to have expertise in at least one investment product, like mutual funds, exchange-traded funds (ETFs), or stocks.”
This means that a person using the title “financial advisor” may have expertise and authorization limited to particular products, such as mutual funds or insurance. Investors should not assume that the title alone means the individual can advise on the full range of financial needs or products. They should ask what the advisor is qualified and licensed to provide, how the advisor is compensated and whether the advisor is restricted to certain products or providers.
When working with a financial advisor, it is crucial that you understand what services and advice they can or cannot provide. Always ask questions such as the following:
- What products are you licensed to sell?
- What services and advice are you qualified to provide?
- What education do you have?
- What conduct standards are you required to follow?
- How can I make a complaint about your conduct?
- To whom can I complain about your conduct?
- How are you compensated?