FOR IMMEDIATE RELEASE
NEW FINANCIAL PLANNING PRACTICE STANDARDS
OFFER CLARITY AND GUIDANCE FOR INDUSTRY AND PUBLIC
Will become mandatory for CFP professionals in 2005
Toronto, October 7, 2003 — What is the difference between financial planning and financial advice? What should happen in a financial planning engagement? What are the obligations of the financial planning professional? These and other questions are addressed in the Financial Planning Practice Standards, introduced today by Financial Planners Standards Council (FPSC).
"The evolution of financial planning is being shaped by the CFP community. Today, we are inviting this community to get ready for the next significant step by trying on these Practice Standards for a good fit before the final version becomes mandatory for all CFP designated financial planners in spring 2005," says Cary List, FPSC Vice President, Standards & Certification.
Expanding on the industry-recognized Financial Planning Process, the Financial Planning Practice Standards further clarify what is expected of CFP (Certified Financial Planner) professionals when offering financial planning. They do not represent new ethical obligations.
"The financial planning process defines "what " a financial professional should do when performing financial planning; The Practice Standards provide detailed guidance on "how" they should do it so as to meet the professional commitment made by all CFP professionals to the highest standards of ethics and competence." says List.
The Practice Standards are the result of a comprehensive development effort begun in 2001, led by FPSC with extensive industry consultation. They are the logical next step in a continuous journey that began with the formation of FPSC eight years ago. FPSC will continue consultations with those working with the Practice Standards and will receive comments until October 30, 2004. Comments can be e-mailed directly to FPSC at standards@cfp-ca.org.
"The Practice Standards build on all that FPSC has accomplished, and they launch the industry forward from the adoption of financial planning standards towards the establishment and recognition of the financial planning profession in Canada," says Chair of the FPSC Board of Directors, Garry Duncan CFP, FCA. "The ultimate beneficiary is, of course, the Canadian public."
A recent consumer survey commissioned by FPSC indicates Canadians are not yet aware of the full scope of financial planning, nor of the benefits to be derived from a professional financial planning engagement. The Practice Standards will help to better inform the public about financial planning - which is defined as the process of creating strategies, considering all relevant aspects of a one's financial situation, to manage financial affairs to meet life goals. It will also clarify for both CFP professionals and their clients their respective roles and responsibilities in the financial planning engagement.
"These new standards will mitigate possible confusion and misunderstanding between client and planner and establish consistency of service delivery," says List. "Ultimately, this will result in an increase in public confidence in financial planning professionals who meet these standards."
"This is a great step towards making financial planning truly a profession. Outlining what is expected from a CFP professional when serving clients' financial planning needs is critical to providing clarity and respect for what we stand for in the community of professional planners," says John Charrette CFP, Chair CIFPs, the new member association for CFP professionals. "These standards will also help existing and prospective clients determine if a professional is indeed providing the quality of care and service that one should expect in a professional financial planning engagement."
"CFP certification has long been our financial planning gold
standard at CIBC Imperial Service," says Donna MacCandlish CFP, vice-president of Financial Solutions Support, CIBC Imperial Service, the bank's branch-based advisory sales force for affluent clients. "FPSC's new Practice Standards present a tremendous opportunity for financial planners to help clients understand the relevance and benefit of comprehensive planning and advice. We applaud the new benchmark set by FPSC."
Addresses a Regulatory Gap:
In the absence of financial planning regulation in most jurisdictions in Canada, the CFP designation serves as the industry-recognized standard in financial planning competency and ethical behaviour. As the regulatory landscape changes, industry participants are seeking ways to supervise the financial planning activities of their representatives and employees. The Practice Standards provide a concrete framework on which to clearly define the knowledge, skills, abilities and attitudes that should be expected of financial planning professionals. They provide the guidelines for supervision as well as action.
Financial Planners Standards Council (FPSC), established in 1995, is a not-for-profit organization dedicated to benefiting Canadians and the financial planning profession by establishing and enforcing education, examination, experience and ethics requirements for individuals who choose to earn the CFP designation. There are currently more than 15,000 planners licensed to use the CFP marks in Canada and approximately 74,000 CFP professionals in 17 countries around the world. See www.cfp-ca.org for further information.
The Practice Standards web cast can be viewed at http://events.onlinebroadcasting.com/fpsc/100703/index.php. The event will archived at the same address and will be accessible within 24 hours of the live event.
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Note to Media: See www.cfp-ca.org to see the current draft of the Practice Standards. In addition, please visit our online Practice Standards media kit to learn more.
FOR MORE INFORMATION OR TO ARRANGE INTERVIEWS, CONTACT:
Eileen Chadnick/Chadnick Communications for FPSC at 416.631.7437 or eileen@chadnick.com or Ann Bowman at 416-593-8587 ext. 225 or abowman@cfp-ca.org.
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