: David Juvet - Submission

August 19,2015

Expert Committee to Consider Financial Advisor & Financial Planning Policy
Alternatives
c/o Frost Building North,
Room 458,
95 Grosvenor St.,
Toronto, Ont.,
M7A lZl

Dear Expert Committee Members,

Thank-you for agreeing to serve on this important Committee.

As someone who has spent his career in the life insurance business, I can share with you that there has been an evolution toward higher standards throughout the last 42 years. As a former life insurance company legal counsel (12 years),insurance distribution executive (2 years) and agency manger and owner (13 years) as well as a life agent, I can state that while we have progressed, there is more to be done.

The Financial Advisors' Association of Canada, known as" Advocis" is continuing it's proud history since 1906 to promote education and ethical conduct amongst it's members. Our 11,500 members nationally (of which there are 5000 in Ontario alone) are committed to Continuing Education. A high percentage hold or are seeking to earn credentials such as the Certified Financial Planner, the Chartered Life Underwriter or the Certified Health Specialist.

There are many different ways by which Ontarians obtain financial planning or advice. Some receive it via a financial needs analysis leading to the purchase of one or more risk protection products. Others learn about financial issues such as market volatility, asset performance, and cash flow implications via discussions with a wealth manager who designs a portfolio to meet her clients' retirement planning needs. Half of our members are either mutual funds or IIROC-licensed, for example. A few Ontarians will purchase a comprehensive financial plan from a fee-only advisor. Since there are only 450 of these in all of Canada (per page 15 of the Price Waterhouse "Sound Advice" report of July 2014) and since their fees for a full plan range upwards of$2000, there are comparatively few Canadians who avail themselves of such planners.

Advocis has been pursuing self-regulation as a result of the work done by our own Task Force of several years ago. Our purpose has always been: we want to regulate ourselves by being accountable to the people of Ontario via discipline panels composed of our members plus lay people, and thereby be similar to the professions who enjoy the same self regulation here, and make use of the exact same structure as has existed in the four western provinces for decades. We also seek to have a common standard for Errors & Omissions coverage, for CE, for the pursuit of financial planning credentials at a university level of course work, and, maintain and enforce a Code of Ethics, so that clients will be well served and our industry will be attractive to new entrants.

While there are thousands of financial advisors in the province who are not members of Advocis, we believe we can set a standard for all via an SRO. In this regard our proposal is NOT exclusive. In fact when we worked with Mr Bartolucci to develop Bill 157 in 2013/2014 (which won unanimous support in the House including same day 151 and 2"d readings) we made our proposal inclusive so that other organizations could use the same structure of a delegated administrative authority to seek appointment as an SRO for their own members.

I wish you well in your deliberations and assure you that Advocis is ready to provide any assistance you may need to better understand the make-up and operations of the industry.

Yours truly,

David Juvet,LLM, FLMI, CFP, CLU, CHS
Immediate Past Chair, Advocis.