To become a financial advisor in Canada, the applicant will have to register as an investment advisor at the federal level as well as in the provincial Securities commission. For this, passing certain exams is important. Financial advisors are those who advise people on the best investment as per their personal situation. Investment managers are called the portfolio managers, securities advisors, investment counsel, wealth advisors, etc. Investment advisers are dull service representatives who need to be registered with the security agency in the province and also with the national registration database.
The term financial advisor is an Umbrella term, and it includes different specializations like-
- Financial planner
- Mutual Fund Salesperson
- bank Financial advisor
- Investment advisor
- Insurance advisor
- Financial Coach
The NOC code for Financial Advisors is-
- NOC 1112 – Financial and Investment Analysts
- NOC 012 – Managers in Financial and Business services
- NOC 1113- Securities Agents, Investment Dealers, and Brokers
To become a financial advisor, you can start the process by getting a bachelor’s degree in any one of the fields- Economic, Accounting, finance, Business administration, or Global business studies. The courses are taken by the appellant will depend on the career goals. But a Financial Advisor is expected to be well versed in the following areas. –
- Canadian Securities industry and regulations
- Corporate Financial Statement analysis
- events that impact performance in investments
- Financial tools Such as Equities, fixed income, and fee-based products
- Portfolio Management
- Asset Allocation
- Financial planning process
- Securities industry standard
- Code of ethics.
What are the additional courses and exams that are expected to be taken to be a Financial Advisor in Canada?
An important test that needs to be taken is the Canadian Securities Course (CSC). The applicant can take the exams like Global Education Canadian Securities Course, which is provided by the CSI Global Education. You can also get sponsorship from your employer to take this course. Once hired few additional courses that need to be taken are –
- Conduct and Practices Handbook Course (CPH)
- Professional Financial planning (PFP)
- Wealth Management Essentials Course (WME)
There are other exams which can be taken as per the expected position in the company and career goals –
- Canadian Investment Funds Exam(CIF)
- Investment Funds in Canada Course exam (IFIC)
- PDO Exam
- Mutual Fund Dealers Compliance Exam (MFDC)
- CFA Charter
- Chief Compliance Officers Qualifying exam (CCO)
- Branch manager proficiency Exam (BMP)
What kind of registration is required?
All the Canadian Investment advisors are registered as Stockbrokers, and the process for registration is province-specific. Thus, in case you shift the province, then you will have to register as well.
The regulator bodies for registration are –
- The IIROC (Investment Industry Regulatory Organization of Canada)
- MFDA (Mutual Funds Dealers Association).
The MFDA regulates standards and expectations of the business and the conduct of the employees along with the protection of the consumers. The IIROC, on the other hand, provides approval to the investment advisors to sell the mutual funds, Stocks, Bonds, GICs, and all the other options of the investment. However, both these agencies are not government agencies; rather, they are self-regulators.