July 06, 2016 | Toronto | by Laurie M Clark 


PARTNERING TO RAISE THE BAR IN LICENSING AND CONTINUING EDUCATION IN ETFS

Achievements of a Higher Education Partnership

In the ongoing debate over the rising cost of compliance and regulatory oversight collaboration frequently emerges as a proposed path forward.

Two institutions, a leading Canadian investment industry association (Canadian ETF Association, CETFA) and the leading Canadian independent education institute (Smarten Up Institute, SUI), have managed to navigate the tricky waters of collaboration to create a rewarding partnership. And we’d like to share our experience with you.

When the Canadian ETF Association was formed in ? it had # members and there were few member services and benefits for them. Today the CETFA is a thriving association with # members and an impressive range of services and benefits. The one foundational concept that was key to sustain and scale its member benefits was in providing the proficiency standard for high quality education services to license the Mutual Fund Dealers to be able to sell the ETF products; to IIROC dealers in support of their continuing education needs; and to the general public in order to better explain the fundamentals of the ETF product in all its vagaries and the trading and compliance strategies into which they are incorporated.

Looking for a nimble, technologically savvy, and progressive partner to provide best-in-class education services, Smarten Up Institute was the logical choice as the exclusive education partner to CETFA.

Launched in 2010, Smarten Up Institute is the independent Canadian provider of financial services training, with over 155 course modules, 8 designations listed on the IIROC website, and over 3000 graduates. SUI’s clients include regulators, banks, credit unions, correspondent firms, small dealers and the general public. An employee owned company, SUI brings an approach to education that is unmatched in Canada, offering great classroom, online and customized instruction led by the industry's best and most respected experts. 

What makes Smarten Up Institute different is: 

Smart Direct® is SUI’s proprietary online learning management system. Using the Internet, the system delivers courses and examinations to students and provides clients with administrative tools and reports. A distinguishing feature of Smart Direct® is the ease with which changes to course materials and examinations can be uploaded in real time. On successful completion of industry accredited courses, students receive an electronically issued certificate used to obtain continuing education (CE) credits.
Smart Talk® is an SUI virtual class and live chat show in which subjects of topical interest are presented and debated, for example High Frequency Trading. 
Smart Mentor Program® is another innovation providing an avenue for”up and coming” stars to obtain advice from the industry’s senior players. A recent example has been SUI’s sponsorship of the Investment Industry Association of Canada’s “Top Under 40” program and the donation of a Smart Mentor Program® to the winner of this year’s competition.
Classroom courses provide a large portion of the company’s revenue. Client firms select courses from the published syllabus or request hybrid courses to meet specific requirements. Classroom courses are held in all the major Canadian cities or via our virtual class. A recent growth area for SUI has been delivering seminar programs for larger firms to assist them in effectively assimilating complex regulatory change and highlighting the attendant implications to their business.
Additional Resources for Client Support. As we encounter clients who would benefit from additional business support, they call upon SUI's experienced staff. SUI has provieded professional services to many industry firms, filling a variety of roles and accomplishing many task, for example: audit support; part time CFO; IIROC/MFDA registration; and leadership and executive training programs.

Whether delivered online, in class or virtual format, SUI® uses innovative training techniques to make dry subjects interesting and engaging for participants. These techniques include role playing, gamification and dramatization; and whether SUI® speaks in French or English, the instructors teach in plain language so that even the most complex of industry regulation is understood.

The CETFA and SUI have learned valuable lessons over the three years of our exclusive education partnership resulting in tangible benefits to the ETF Dealer, Advisor and the investor.  They include:

A Shared Vision. Both organizations speak the same language and operate with similar understandings of vision and purpose in relation to its education program for the CETFA members and their representative public. This focuses efforts in this high priority area. In sum, each organization provides overlap for best-in-class education services and a shared commitment to those who partake of the program developed by SUI with input and guidance from the CETFA.

In-Depth, More Choice and the Sole Focus on ETFs make the partnership more than merely a mechanical one. CETFA members benefit from the many courses developed exclusively with the Advisor and the investor in mind. When first embarking upon a set of standards at the initial stage of this program, one of the founding precepts we adhered to was that while regulators wish to put the onus of all evil at the foot of the IA, the IAs are professionals and therefore we at SUI were going to treat them thusly, including providing them with the full picture of the product and the industry in which it resides-good, bad, indifferent and ugly, if that applies. All of it should be up for learning, discussion, perspective and context. The CETFA and SUI believe it is this fundamental precept which will ultimately prove helpful for them in their interaction with clients. We also sought input from the Federation of Mutual Fund Dealers as we understood immediately the impact to the MF industry and the Advisors who would require additional licenses to sell ETFS. 

We Started with One Course, Introduction to Exchange Traded Funds, and eventually realized there was much more to ETFs than simply an overview of a product. ETFs are included in many compliance and trading strategies and can also be seen as a commodity product. And therefore, we embarked on a series of other more in-depth courses. We now count six (6) courses in our complement for the CETFA and its members, and the wider Canadian investment industry.  

SUI’s ETF courses for the CETFA and the Canadian Investment Industry members are:

Contact us at info@smartenupinstitute.com for more information on ETFs or any of our other education programs.

The MFDA and Federation of Mutual Fund Dealers were then brought into our discussions as to what would comprise the standards and foundations for a proficiency program. We were aligned in the vision that as a professional, the Advisor had to understand all aspects of the product. The good, the bad, the ugly. Thus the birth of Exchange Traded Funds for Representatives of Mutual Fund Dealers. Delivered on-line and in-class, this course exceeds the proficiency standards and guidelines to ensure the Mutual Fund Advisor has the best course to meet and exceed his or her product knowledge, thus translating to a better interaction with the client. The course was reviewed by the MFDA, the CETFA and the FMFD. 

We are very pleased that this course is recognized by the MFDA and confirmed as a qualifying course to Proposed New MFDA Policy 8 - Proficiency Standard for Approved Persons Selling Exchange Traded Funds. 

Plain Language.  The CETFA and SUI understood from the initial program launch that for the program to be successful, courses had to be written in plain language. While the industry touts this as an ideal, we live by it. It’s useless to have one study any course that is complex and not easily understood. That’s why we have a Ph.D. in Education Gamification on staff. We take fun seriously. Our courses include humour, case studies, games, and real world examples that take the student far beyond the written word and lead them to absorb the concept fully, leading ultimately to then explaining the concept to their client. 

Certified ETF Specialist Designation. When launching the ETF Education Program with the CETFA we had a vision of creating a designation that would establish leadership out to the industry. There were segments of the ETF industry struggling to demonstrate to the regulators and to the greater industry that proficiency within the ranks was taken seriously. Rather than leave the establishment of guidelines standards to others, the CETFA with SUI led the charge to create a minimum ‘professional standard’ within the industry.  This is more than a survey program; it is a way for leaders to demonstrate and deepen their commitment to sustaining what has been and continues to be an outstanding example of a higher education industry standard in meeting and serving the investing public in the best educated light. In fact, one ETF manufacturer has mandated all its sales force take the courses necessary to qualify to receive the designation; a commendable example of leadership and commitment to the industry and the investing public.

The “Certified ETF Specialist” designation is granted upon successful completion of the programs accredited courses and assignment. Designation programs are accredited and recognized as certificate designations by IIROC*. A Designation Guide is available on the CETFA website outlining the courses and the process to qualify for the designation.

Cost effective and comprehensive. In leading the charge to enhance SUI’s brand for leadership in proficiency and licensing education the programs SUI undertakes must meet the following vision:

• We provide quality education
• to financial professionals
• who serve the investing public.

While this vision seems simple enough, it’s not. The standards to which we hold all our instructors and the courses and programs that are delivered are high. And have met the mark of excellence from regulators and industry professionals alike. It’s not easy to make a Bank of Canada Analyst take note of our programs, or the Law Society or the Chartered Professional Accountants of Ontario. Our courses have been accepted and are eligible for Professional Development credits by many organizations due to our unwavering high standards and practices. However, you don’t have to gouge people’s pockets in the pursuit of excellence. Our proprietary technology in our Smart Direct®, system, and the ways in which it uploads and updates content to all our courses in real time, has far and away surpassed legacy providers. We can leverage these efficiencies to bring cost savings to the student. Our on-line and in-class courses are comprehensive and cost effective. More than that – they meet our vision and our standard of excellence.

Investor Touchpoints. The nonmonetary benefits of collaboration have proven of great worth. The CETFA and SUI having been successful in its collaborative efforts in creating and scaling the program has resulted in best-in-class industry courses, industry kudos for leadership in education standards, the support of regulators and a high regard for SUI’s education programs and its company model.

As institutions and organizations continue to face the challenge of offering excellent value in a higher education landscape in which costs continue to rise and compliance oversight is ever present, collaborative partnerships can provide a path forward. When both partners are committed to the same goals, and have strong, creative and sustained leadership, it can be a partnership that benefits both. CETFA and SUI continue to forge a strong and committed partnership resulting in benefits to the members and to the greater Canadian capital markets, but ultimately, to the vision of how to best serve the investor.