Understanding the Industry

One of the most challenging aspects for Canadian consumers is to decipher what exactly their financial institution or advisor can offer. There are numerous licensing qualifications as well as numerous educational designations that build on basic licensing courses.

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Licensing Options

Within Canada, there are three main licensing options. Commonly, a financial advisor will hold one or two out of three of the below.

Insurance license

This allows a financial advisor to access:

Life Insurance
Disability Insurance
Critical Illness
Segregated Funds
Annuities

Mutual Fund License

Offered through the Canadian Investment Regulatory Organization: “CIRO”

This allows a financial advisor to offer mutual funds as an investment option.

Securities License

Offered through the Canadian Investment Regulatory Organization: “CIRO”

This allows a financial advisor to offer mutual funds as well as Exchange Traded Funds (ETFs), Individual Stocks, Individual Bonds

Asset Management

After completing the initial licensing courses, an individual may extend their education to achieve either a Chartered Investment Manager (CIM) or Chartered Financial Analyst (CFA) designation. One of these designations combined with ample experience and an application to the Canadian Investment Regulatory Organization may allow the individual to be upgraded to Portfolio Manager status.

Chartered Investment Manager (CIM®) | Canadian Securities Institute (csi.ca)

Financial Planning

The Certified Financial Planner (CFP) designation offered through FP Canada is considered the gold standard globally for financial planning. This demonstrates an individual has gone beyond basic licensing courses and has undertaken formal training in broad financial planning.

Direct Path to CFP Certification (fpcanada.ca)

The Trust and Estate Practitioner (TEP) designation offered through the Society of Trust and Estate practitioners (STEP Canada is considered the gold standard globally for estate planning. This demonstrates the individual has gone beyond basic licensing courses and has undertaken formal training in trusts and estates.

STEP Canada

Accounting and Planning

The CPA designation offered through CPA Canada is considered the gold standard globally for accounting and tax. This demonstrates an individual has gone beyond basic requirements in the wealth management industry to specialize in accounting and tax advice.

CPA Canada