TORONTO, ONTARIO--(Marketwired - Apr 1, 2015) - Financial Planning Standards Council (FPSC) and the Institut québécois de planification financière (IQPF), the two organizations that establish and maintain standards for the financial planning profession in Canada, have for the first time come together to establish a unified set of financial planning standards.
With the Canadian Financial Planning: Definitions, Standards & Competencies, FPSC and IQPF establish a unified code of ethics and a common set of practice standards by which individuals holding the F.Pl. title and CFP® designation must abide. They also define the ethical and performance standards that clients should expect from a professional relationship.
"We've achieved unprecedented consensus within the financial planning profession to unify standards that will help give Canadians clarity and confidence when engaging a qualified financial planner," says Cary List, President and CEO of FPSC. "Together we will use this as a foundation to elevate financial planning as a distinct professional practice in Canada; one that holds itself to the highest possible standards of ethics and performance."
"This is a milestone for the financial planning profession," says Jocelyne Houle-LeSarge, President and CEO of IQPF. "This publication plays an important role in driving consistency across the financial planning profession by specifying unified standards for those practicing within it. It further acts as a resource to the industry firms, financial planning educators, other key industry partners and the Canadian public at large."
Recent research by the Financial Planning Coalition, which is comprised of four organizations* concerned with ensuring there exist adequate and appropriate standards for financial planners for the benefit of the public, reveals the significant need for clarity around standards. The survey found that while most Canadians feel they have insufficient knowledge to adequately plan their financial future, they are also unaware of the lack of mandatory standards for financial planners throughout most of Canada.
The research found that two-thirds of Canadians feel they need help planning their financial futures, but most are unaware of the lack of regulatory standards for financial planners throughout most of Canada. Fewer than half of respondents (49 per cent) know there is a difference between a financial planner and a financial advisor, while almost half (44 per cent) believe there are regulatory standards in place for financial planners.
In unifying financial planning standards, FPSC and IQPF have clearly defined what "financial planning", a "financial planner" and a "financial plan" really mean. These definitions and standards emphasize objectivity, confidentiality, ethics and client interest first, a deep understanding of the financial needs, goals and aspirations of the client, and a high level of competence as essential characteristics of all financial planners. Critically, the organizations stipulate that a true financial planner must be appropriately qualified and agree to be accountable to professional oversight and to putting their clients' interests first.