AVA/CLU RECIPROCAL RECOGNITION - iafe.ca

1 AVA/CLU RECIPROCAL RECOGNITION frequently asked Questions ( faqs ) The AVA/CLU RECIPROCAL - RECOGNITION agreement represents a critical step in the forging of new relationships with Quebec regulators and finding specific opportunities to support Institute members in Quebec. What is the CLU designation? The Chartered Life Underwriter (CLU) is Canada s premier wealth transfer and estate planning designation. The Institute, a wholly-owned subsidiary of Advocis, The Financial Advisors Association of Canada, is the only organization in Canada with the authority to confer this designation. What is the AVA designation? The assureur-vie agr (AVA) title is conferred by la Chambre de la s curit (la Chambre), in accordance with the Regulation governing the titles of registered life underwriter and chartered life underwriter, to a representative authorized to practice in Quebec.

2 The Authorit des march s financiers (AMF), which regulates the financial products and services industry in Quebec, oversees the AVA designation and ensures la Chambre fulfills its mission to protect consumers. What is the AVA/CLU RECIPROCAL - RECOGNITION Agreement? Over the past year, Advocis and Institute staff have been working with la Chambre to establish an education equivalency toward the RECIPROCAL RECOGNITION of the CLU and AVA designations. The RECIPROCAL - RECOGNITION agreement enables advisors holding the CLU designation to complete a segment of the AVA education program in order to be granted the rights to use the AVA designation in Quebec; it likewise enables advisors holding the AVA designation to complete a segment of the CLU education program in order to be granted the rights to use the CLU designation in all provinces.

3 What are the requirements for CLUs who wish to be granted the AVA title? CLUs who wish to be granted the AVA designation must: be licensed by the AMF; successfully complete the Concepts in Insurance of Persons course, currently offered online in French only (release of English version being considered); successfully complete Financial Planning - Financial planning integration activity, currently offered in class in French only abide by all of the codes of practice required by the designating body; meet the annual continuing education requirement (see below for details); pay any applicable annual fees. What are the requirements for AVAs who wish to be granted the CLU designation?

4 AVAs who wish to be granted the CLU designation must: be granted the right to use the CLU designation by The Institute; successfully complete the Advanced Estate Planning course (requires the application of knowledge from the entire CLU curriculum) currently offered in English via self-study; abide by The Institute's Code of Professional Conduct; meet the annual continuing education requirement for the CLU designation (see below for details); pay any applicable annual fees. What are the continuing education (CE) requirements for the CLU designation? The Institute s annual CE requirements follow the calendar year (12-month period running from January 1 to December 31).

5 The annual CE requirement for the CLU designation is a minimum of 30 CE credits each calendar year, one credit of which must be from a recognized Ethics program. NOTE: Carry-forward credits do not apply. Each hour of CE credit must be approved by The Institute in order to qualify. Any deficiency in one year must be made up by the end of the next calendar year, in addition to the full year s necessary CE requirement. More information on The Institute s CE requirements can be found here. What are the continuing education (CE) requirements for the AVA title? La Chambre s annual CE requirements follow a 24-month period ( December 1, 2011 to November 30, 2013). The biennial CE requirement is 30 PDUs, apportioned as follows: 10 PDUs in General Subjects 10 PDUs in Compliance with standards, ethics and professional practice 10 PDUs in topics specific to discipline or registration category in which they are authorized to carry on business.

6 PDUs in excess of the 10 PDUs required in specific topics or in compliance with standards, ethics and professional practice are credited as general subject PDUs. There are five sectors and registration categories: 1. Group savings plan brokerage; 2. Financial planning (with the exception of any matter involving the professional development of financial planners); 3. Insurance of persons (including accident and sickness insurance); 4. Group insurance of persons (including group insurance plans and group annuity plans); and 5. Scholarship plan brokerage How does an AVA apply for the CLU designation? Those who have successfully completed CLU 237 the Advanced Estate Planning must, in order to hold the AVA designation, provide verification to The Institute, which indicates that they are licensed by and in good standing with the AMF.

7 Any AVA who successfully meets these requirements will be conferred with the CLU designation. As with all CLU desgination holders, any AVA holding a CLU must maintain their designation in good standing; this includes the payment of an annual designation licensing fee, completion of the continuing education requirement, and adherence to The Institute s Code of Professional Conduct. How does a CLU designation holder apply for the AVA designation? CLUs wishing to apply for the AVA designation are encouraged to visit La Chambre online or call La Chambre at 514-282-5777. Why is the AVA/CLU RECIPROCAL - RECOGNITION Agreement important to the financial services industry in Canada? The agreement is important in that it enables the mobility of financial advisors and services across Canada.

8 All Canadian provinces have reached an Agreement on Internal Trade in order to faciliate interprovincial commerce by reducing and eliminating as much as possible obstacles linked to the free flow of persons, products, services and investments inside Canada. The goal here is a truly open, efficient and stable domestic market. What if I am a CLU designation holder who has used the title assureur-vie agr , or the letters AVA , when working with French-language clients outside of Quebec? Neither the title assureur-vie agr nor the letters AVA should be used outside of Quebec. Only individuals who have been authorized by la Chambre, in accordance with the Regulation governing the titles of registered life underwriter and chartered life underwriter, are authorized to use the AVA title.

9 Any individual wishing to represent themselves as a CLU designate outside of Quebec must apply to The Institute for Advanced Financial Education, as outlined in the AVA/CLU RECIPROCAL - RECOGNITION process outlined above.