Joint Forum releases intermediary sales practices paper

The Joint Forum of Financial Market Regulators (JFFMR) has released its “Principles and Practices for the Sale of Products and Services in the Financial Sector”.
The new document suggests principles for the sale of a wide array of products, including p&c insurance, life insurance, securities, pensions, banking products and more. It was developed with the input not only of the provincial regulators who comprise the JJFFMR, but also industry groups including the Insurance Brokers Association of Canada (IBAC) and the Insurance Bureau of Canada (IBC).
The JFFMR says the principles are intended to complement, rather than compete with, existing and generally more comprehensive requirements developed by each industry sector, and are voluntary. However, the goal was to developed a more harmonized general view across jurisdictions and financial services sectors.
By way of an overview, the eight general principles put forward by the JFFMR focus on these areas: interests of the client; needs of the client; professionalism; confidentiality; conflicts of interest; disclosure; unfair practices; client redress. The principles also includes a “consumer’s guide” to buying financial services product based on the principles.
The principles are actually the first stage of a four-part process which will also include guidance on minimum proficiency and continuing education requirements, as well as licensing for intermediaries who sell more than one type of financial product.
The consumer’s guide and principles can be accessed at www.jointforum.ca.