Key Takeaways:
- The Canadian Securities Course (CSC) is no longer the required entry ticket to a Bay Street career as of January 1, 2024.
- The Canadian Investment Regulatory Organization (CIRO) has moved to an exam-based proficiency regime, allowing candidates to become advisors at investment dealers without completing the CSC.
- Candidates can still become registered by completing the Investment Funds in Canada (IFC) course or other credentialing options.
- The CSC will continue to play a role in the Canadian financial education marketplace, particularly for those seeking designations such as chartered investment manager and personal financial planner.
- New exam preparatory courses are being offered by various financial education providers, including FP Canada and SeeWhy Learning Inc.
Introduction to the Canadian Securities Course
The Canadian Securities Course (CSC) has been the foundational financial services industry credential for decades, providing students with a broad understanding of financial markets, investment products, and economic and financial concepts. However, as of January 1, 2024, the CSC is no longer the required entry ticket to a Bay Street career. The Canadian Investment Regulatory Organization (CIRO) has moved to an exam-based proficiency regime, allowing candidates to become advisors at investment dealers without completing the CSC. This change has significant implications for the financial education industry and the role of the CSC in the Canadian financial education marketplace.
The New Proficiency Regime
The CIRO’s new proficiency regime requires candidates to complete one or more of nine exams, depending on the proficiency category, and meet baseline education or experience, dealer training, conduct training, and continuing education requirements. Advisor candidates looking to trade securities need to complete the Canadian Investment Regulatory Exam (CIRE), while those looking to trade and provide advice on securities would have to complete both the CIRE and the Retail Securities Exam (RSE). This new regime gives learners more flexibility in terms of how to prepare for exams and allows CIRO to be more agile in responding to industry changes and incorporating them into the proficiency model. According to Elsa Renzella, senior vice-president of member compliance and registration with CIRO, the new proficiency regime is designed to provide a more efficient and effective way for candidates to demonstrate their proficiency and become registered advisors.
The Impact on the CSC and CSI
The changes to the CIRO’s licensing regime have significant implications for the Canadian Securities Institute (CSI), which has been the provider of the CSC for decades. Fitch Learning, which acquired CSI last year, says that enrollment for the CSC has ranged between 10,000-12,000 registrations annually in recent years, with the majority of those being financial advisor trainees or those already working at investment dealers. However, with the introduction of the new proficiency regime, enrollment is likely to decrease as candidates move to new CIRO exam preparatory courses offered by other financial education providers. Despite this, Andreas Karaiskos, chief executive officer of Fitch Learning, says that the CSC will continue to play a role in the Canadian financial education marketplace, particularly for those seeking designations such as chartered investment manager and personal financial planner.
New Exam Preparatory Courses
Several financial education providers, including FP Canada and SeeWhy Learning Inc., have launched CIRE and RSE exam preparation courses, seeking to take advantage of the opportunity in the market. Alexandra Macqueen, vice-president of learning, development, and professional practice at FP Canada, says that while some candidates might be able to attempt CIRO exams on their own, she believes most will look to learn through preparatory courses. Cory Snyder, vice-president of operations at SeeWhy Learning, says that under CIRO’s new proficiency regime, candidates will benefit from the flexibility to choose how to prepare for exams. The introduction of these new exam preparatory courses is expected to increase competition in the market and provide candidates with more options for preparing for the CIRO exams.
The Future of the CSC
The CSC will continue to be offered by Fitch Learning, and the company will examine ways to adapt and update the curriculum to ensure it continues to serve as a bridge to designations and address any educational gaps. According to Mr. Karaiskos, the CSC provides a competency that is still highly valued in the industry, and it will continue to be an important part of the Canadian financial education marketplace. However, the introduction of the new proficiency regime and the launch of new exam preparatory courses will likely lead to changes in the way the CSC is delivered and the role it plays in the industry. As the financial education industry continues to evolve, it is likely that the CSC will need to adapt to remain relevant and continue to provide value to candidates and the industry as a whole.
