Ontario regulators have granted the Canadian Investment Regulatory Organization (CIRO) the authority to determine if its professional members can use the title of “financial advisor.”

The Financial Services Regulatory Authority of Ontario (FSRA) said Tuesday that it had approved CIRO, a national self-regulatory organization for financial markets professionals, as a relevant credentialing body under the province’s Financial Professionals Title Protection Act.

The move is expected to increase the number of professionals using the title of financial advisor and give investors clarity about their advisors’ qualifications, the regulator said.

“By approving CIRO as a credentialing body, tens of thousands more investment professionals will be able to use the financial advisor title,” Huston Loke, executive vice president at FSRA, said in a written statement. 

Loke said new arrangement will enhance consumer protections and increase competition in the financial services industry. 

“Accreditation through CIRO will give investors confidence that they are dealing with highly qualified financial advisors,” Andrew Kriegler, president and CEO at CIRO, said in the release. 

“Receiving accreditation through CIRO will allow financial services professionals in Ontario to use the financial advisor title, while avoiding any duplication of regulatory requirements or cost.”

There are four categories of CIRO professionals now approved to use the “financial advisor” title: registered representatives, mutual fund dealing representatives, portfolio managers and associate portfolio managers. 

CIRO was launched in January 2023 and consolidated two regulatory organizations, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA). 

The organization has a mandate to provide protections to investors and support Canadian capital markets.