D-9.2, r. 14.1 - Regulation respecting the compulsory professional development of financial planners

À jour au 24 mai 2017

Ce document a valeur officielle.

chapter D-9.2, r. 14.1

Regulation respecting the compulsory professional development of financial planners

Act respecting the distribution of financial products and services

(chapter D-9.2, s. 200).

DIVISION I SCOPE AND INTERPRETATION

1. This Regulation applies to every natural person who holds a certificate issued by the Autorité des marchés financiers (the “Authority”) authorizing the person to use the title of financial planner.

M.O. 2011-07, s. 1.

2. In this Regulation,

“PDU” means a professional development unit consisting of one hour of training activity that satisfies one of the following requirements:

(1)  it is recognized by the Authority pursuant to Division III;

(2)  it is developed and provided by:

(a)  the Institut québécois de planification financière or in partnership therewith;

(b)  a recognized supplier;

“reference period” means any 24-month period beginning on 1 December of an odd-numbered year;

“recognized supplier” means an organization that has obtained recognition from the Authority as a supplier of professional development activities in accordance with Division II.1;

“trainer” means a natural person who acts as an instructor or facilitator and who provides a training activity.

M.O. 2011-07, s. 2; M.O. 2017-05, s. 1.

DIVISION II TRAINING

§ 1 . — Period, frequency and content of training

3. A financial planner must, in respect of any reference period, take part in professional development activities and accumulate 40 PDUs apportioned as follows:

(1)  15 PDUs related to training activities developed and provided by or in partnership with the IQPF involving integrated financial planning in the following 7 areas:

(a)  finance;

(b)  taxation;

(c)  legal aspects;

(d)  retirement planning;

(e)  estate planning;

(f)  investment;

(g)  insurance;

(2)  15 PDUs related to training activities recognized by the Authority or developed and provided by a recognized supplier in one or more of the 7 areas listed in subparagraph 1; and

(3)  10 PDUs related to training activities recognized by the Authority or developed and provided by a recognized supplier in subjects pertaining to compliance with standards, ethics and business conduct, including 5 PDUs related directly to financial planning.

At the end of every second reference period, the 10 PDUs that the financial planner must accumulate under subparagraph 3 of the first paragraph are to include 5 PDUs related to a training activity developed and provided by or in partnership with the IQPF in subjects pertaining to compliance with standards, ethics and business conduct or regarding developments in the rules of law governing financial planners.

M.O. 2011-07, s. 3; M.O. 2017-05, s. 2.

§ 2 . — Variations in the training requirement and exemptions

4. A financial planner who is issued a certificate by the Authority during a reference period that has already begun must accumulate, according to the apportionment in section 3, a number of PDUs equal to the proportion that the number of full months for which the certificate has been held is to a reference period. In computing such proportion, the number of PDUs is rounded up to the nearest unit.

M.O. 2011-07, s. 4.

5. A financial planner who is issued a certificate by the Authority during the first year following the awarding of the IQPF diploma is exempt from the requirement to take part in professional development activities for a 12-month period following the date on which the diploma was awarded.

M.O. 2011-07, s. 5.

6. A financial planner is exempt from professional development requirements if he is absent or on leave during a period of at least 4 consecutive weeks, in particular owing to sickness or accident, or for family or parental reasons. For purposes of this section, the causes and terms of an absence are those set out in Divisions V.0.1 and V.1 of Chapter IV of An Act respecting labour standards (chapter N-1.1).

A financial planner may obtain an exemption in accordance with the first paragraph if he submits a written application to the Authority outlining the reasons for the exemption together with an explanatory document or medical certificate in support of the alleged situation.

Before refusing in whole or in part an application for an exemption, the Authority must give the financial planner written notice of his right to submit written observations within the time limit indicated by it.

M.O. 2011-07, s. 6.

7. The financial planner must notify the Authority in writing as soon as the situation giving rise to the exemption ceases to exist. He must then comply with the requirements prescribed by this Regulation and accumulate a number of PDUs equal to the proportion that the number of full months, whether or not elapsed, during which he was not exempted from the requirements during a reference period is to that reference period. In computing such proportion, the number of PDUs is rounded up to the nearest unit.

M.O. 2011-07, s. 7.

8. A financial planner who has been suspended or struck off the roll temporarily or whose certificate includes conditions or restrictions is not exempted from the requirements prescribed by this Regulation.

However, if the financial planner has been suspended or struck off the roll temporarily for more than one year, he is exempted from these requirements for the portion of such period that exceeds one year.

M.O. 2011-07, s. 8.

§ 3 . — Accumulation and assignment of PDUs

9. A financial planner who acts as an activity trainer is entitled, only once for the activity, to double the number of PDUs awarded for the activity.

A financial planner who has been suspended or struck off the roll or whose certificate has been cancelled, has not been renewed or includes conditions or restrictions may not provide professional development activities and be awarded PDUs as an activity trainer for such activities.

M.O. 2011-07, s. 9.

10. A financial planner who, in respect of a reference period, has accumulated more PDUs than the number required under subparagraphs 2 and 3 of the first paragraph of section 3 may not carry the excess PDUs over to a subsequent reference period.

However, a financial planner who, in respect of a reference period, has accumulated more PDUs than the number required under subparagraph 1 of the first paragraph of section 3 may include the excess PDUs as PDUs referred to under subparagraph 2 of the first paragraph of section 3, but solely in respect of the same period.

M.O. 2011-07, s. 10.

11. A financial planner who, at the end of a reference period, has failed to comply with the professional development requirements prescribed by this Regulation, may not, for the purpose of remedying such failure, assign to the period in respect of which he is in default PDUs accumulated during the subsequent reference period until the Authority has rendered a suspension decision under the second paragraph of section 218 of An Act respecting the distribution of financial products and services (chapter D-9.2), and such decision has been fully executed.

M.O. 2011-07, s. 11.

§ 4 . — Notice from the Authority

12. At least 30 days before the end of a reference period, the Authority must send a notice to each financial planner who has not accumulated the required number of PDUs informing the financial planner of the consequences under the second paragraph of section 218 of An Act respecting the distribution of financial products and services (chapter D-9.2) or under sections 57 or 63 of the Regulation respecting the issuance and renewal of representatives’ certificates (chapter D-9.2, r. 7).

M.O. 2011-07, s. 12.

13. Within 30 days after the end of a reference period, the Authority must send a notice to each financial planner who has not accumulated the required number of PDUs informing the financial planner of the consequences of his failure under the second paragraph of section 218 of An Act respecting the distribution of financial products and services (chapter D-9.2) or under sections 57 or 63 of the Regulation respecting the issuance and renewal of representatives’ certificates (chapter D-9.2, r. 7).

M.O. 2011-07, s. 13.

§ 5 . — Keeping and sending of documents

14. A financial planner must keep, for a 24-month period following the end of a reference period, the supporting documents regarding each training activity in which he took part, in particular attendance vouchers, certificates of exam or test results or transcripts issued by the trainer, organization or educational institution that provided the professional development activities.

M.O. 2011-07, s. 14.

15. During a reference period or within 20 days after receipt of the notice referred to in section 13, a financial planner must, personally or through the firm for which the financial planner is acting or the independent partnership of which the financial planner is a partner or employee, send to the Authority a copy of the supporting documents for the activities in which he took part. If the financial planner fails to send the Authority a copy of the required supporting documents, the PDUs for the recognized activities in question are not to be considered valid for purposes of the professional development requirements prescribed by this Regulation.

However, a financial planner is exempt from the requirement under the first paragraph if the financial planner or the firm for which the financial planner is acting or the independent partnership of which the financial planner is a partner or employee registers his attendance at the professional development activities by means of secured access to the IQPF’s website. The financial planner must send a copy of supporting documents only if the Authority so requires for data verification purposes, in which case paper copies must be provided within 30 days of the Authority’s request.

M.O. 2011-07, s. 15.

DIVISION II.1 RECOGNITION AS A SUPPLIER OF PROFESSIONAL DEVELOPMENT ACTIVITIES

M.O. 2017-05, s. 3.

15.1. Any entity that wishes to be recognized by the Authority as a supplier of professional development activities must satisfy the following requirements:

(1)  it must be a public body, a self-regulatory organization to which the provisions of Title III of the Act respecting the Autorité des marchés financiers (chapter A-33.2) apply, a professional order or an association dedicated to advancing and disseminating knowledge and improving members’ competencies in an area of financial planning;

(2)  it must, during the 5 years preceding the application for recognition, have provided training activities recognized by the Authority and complied with any decision of the Authority pertaining to the recognition of the training activities referred to in Division III;

(3)  it undertakes as follows:

(a)  the training activities, the pedagogical framework of these activities and the pedagogical material used enable the skills and competencies referred to in section 16 to be developed;

(b)  the training or professional experience of the trainers are related to the training activities offered.

(4)  it has submitted an application for recognition as a supplier in accordance with section 15.2.

M.O. 2017-05, s. 3.

15.2. An application for recognition must be submitted to the Authority at least 30 days before the first training activity is held.

The application must include the following:

(1)  the name and contact information of the applicant and a contact person;

(2)  a description of the applicant’s areas of activity;

(3)  the number of training activities the applicant is proposing to offer during the recognition validity period and the respective duration of these activities;

(4)  the undertakings of the applicant set out in paragraph 3 of section 15.1.

M.O. 2017-05, s. 3.

15.3. The Authority may grant or refuse the recognition within 30 days of the date of receipt of the application. If the Authority refuses the recognition, it will provide the applicant with the reasons therefor in writing.

M.O. 2017-05, s. 3.

15.4. The recognition of the supplier is valid for a 24-month period as of the date of the recognition decision or as of any other date stipulated in the decision. An applicant that wishes to renew this recognition must submit a new application to the Authority.

M.O. 2017-05, s. 3.

15.5. A recognized supplier must satisfy the following requirements:

(1)  it must ensure that the content of the training activities and the related pedagogical material allow for the development of the skills and competencies referred to in section 16;

(2)  it must respond to requests for information from the Authority within the time limit set by the Authority, in particular requests intended to assess compliance with the training objectives referred to in this Regulation;

(3)  it must send the Authority, no later than 30 days after the end of the reference period, a report describing all of the training activities offered during this period and a statement indicating that it has satisfied the requirements in paragraphs 1 and 3 of section 15.1;

(4)  it must keep, until the end of the 24 months following the submission of the report referred to in paragraph 3:

(a)  all of the documents relating to each training activity, including pedagogical material and any promotional material;

(b)  the certificates of participation issued to participants who attended the training activities.

M.O. 2017-05, s. 3.

15.6. A recognized supplier must inform the Authority of any change regarding any of the items referred to in this division.

M.O. 2017-05, s. 3.

15.7. The Authority may revoke the recognition if it becomes aware that, following a change, the supplier does not satisfy or no longer satisfies the requirements referred to in paragraphs 1 and 3 of section 15.1 and section 15.5.

If the Authority revokes the recognition, it must give written notice thereof to the supplier concerned within 10 days preceding the revocation.

M.O. 2017-05, s. 3.

DIVISION III RECOGNITION OF TRAINING ACTIVITIES

16. The Authority recognizes a training activity if it enables the following skills and competencies to be developed:

(1)  development and betterment of a comprehensive and integrated vision of personal financial planning;

(2)  acquisition, comprehension and application of theoretical and technical knowledge in the areas related to personal financial planning; and

(3)  acquisition, comprehension and application of theoretical and technical knowledge in subjects pertaining to compliance with standards, ethics and business conduct.

However, the Authority does not recognize activities pertaining to the sale of specific financial products or services, including securities.

M.O. 2011-07, s. 16.

17. An application for recognition must be submitted to the Authority before or not more than 6 months after the activity is held, but not later than the last day of the reference period during which the activity is held, by the trainer, organization or educational institution providing the activity.

No later than the last day of the reference period in effect, a financial planner may, in accordance with section 18, submit an application for recognition of a training activity in which he took part and which has not already been recognized. The recognition decision rendered further to such an application is valid only for the financial planner in question.

M.O. 2011-07, s. 17.

18. The application for recognition must include:

(1)  a description of the training activity in question;

(2)  the procedure for the activity and its duration;

(3)  the number of PDUs requested for the training activity;

(4)  a document explaining how the activity develops the skills and competencies referred to in the first paragraph of section 16;

(5)  if the application is submitted before the activity is held, the name and address of the person responsible for the activity;

(6)  if the application is submitted after the activity is held, by the financial planner personally, any supporting documents for the activity;

(7)  if the application is submitted after the activity is held, by the trainer, organization or educational institution providing the activity, a list of participants.

M.O. 2011-07, s. 18; M.O. 2017-05, s. 4.

19. The Authority must recognize or refuse to recognize an activity within 30 days of receipt of the application. If the recognition is refused or the activity is recognized for fewer PDUs than requested, the Authority must give written reasons therefor to the applicant.

M.O. 2011-07, s. 19.

20. The recognition of an activity is valid for a 24-month period as of the date of the recognition decision or as of any other date stipulated in the decision. An applicant that wishes to renew this recognition must submit a new application to the Authority.

M.O. 2011-07, s. 20; M.O. 2017-05, s. 5.

21. The person responsible for an activity must inform the Authority of any change in any of the items listed in section 18.

Further to the notice of change referred to in the first paragraph, the Authority may terminate recognition of the activity or increase or decrease the number of PDUs awarded for the activity. The Authority must then send its decision to the applicant.

M.O. 2011-07, s. 21.

22. The Authority may terminate recognition of an activity or increase or decrease the number of PDUs awarded for such activity if it becomes aware that the activity being provided is different from the activity that was recognized.

If the Authority terminates recognition of the activity or increases or decreases the number of PDUs awarded for such activity, it must give written notice thereof to the applicant concerned.

M.O. 2011-07, s. 22.

DIVISION IV TRANSITIONAL AND FINAL PROVISIONS

23. (Revoked).

M.O. 2011-07, s. 23; M.O. 2017-05, s. 6.

24. This Regulation replaces the Regulation respecting the compulsory professional development of financial planners (chapter D-9.2, r. 14).

M.O. 2011-07, s. 24.

25. (Omitted).

M.O. 2011-07, s. 25.

REFERENCES

M.O. 2011-07, 2011 G.O. 2, 3271

M.O. 2017-05, 2017 G.O. 2, 1267