FP Canada Standards Council™ Announces Amendments to Standards of Professional Responsibility

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FP Canada

Jul 13, 2021, 11:30 ET

The revised Standards of Professional Responsibility include two new rules of conduct governing the use of technology by professional financial planners

TORONTO, July 13, 2021 /CNW/ - A division of FP Canada™, the FP Canada Standards Council™ establishes and enforces financial planning standards, sets the certification requirements for professional financial planners and develops and delivers certification examinations. The Standards Council ensures FP Canada certificants—Qualified Associate Financial Planner™ professionals and Certified Financial Planner® professionals—meet high standards of competence and professionalism through rigorous requirements of education, examination, experience, and ethics.

The Standards of Professional Responsibility, set and enforced by the Standards Council, define the ethical and professional responsibilities of FP Canada certificants. The Standards Council recently amended the Standards of Professional Responsibility, to include two new rules of conduct governing the use of technology by CFP® professionals and QAFP™ professionals when providing financial planning services.

The new rules of conduct are accompanied by extensive guidance and should be read in conjunction with this guidance.

Rule 28: When relying on or using technology in the financial planning process, a Certificant:

  1. Must take reasonable proactive steps to gain a general understanding of the methodologies underlying the technology that have a direct impact on financial planning projections and recommendations;
  2. Must have an understanding of the financial assumptions underlying the technology that have a direct impact on financial planning projections and recommendations; 
  3. Must validate that the inputs and assumptions used are reasonable and appropriate based on the client's circumstances; and
  4. Must validate that the outputs generated are reasonable and appropriate for the client before relying on them, or presenting the final recommendations or strategies to the client. 

Rule 29: In all cases, irrespective of the data used, the material assumptions used as well as the rationale must be documented, and clearly communicated to clients.

"Technology continues to reshape the financial planning profession. The inclusion of these new rules of conduct underscores the Standards Council's commitment to maintaining high financial planning standards, in the public interest," said Lesley Poole, CFP® , Chair of the Standards Panel.

The rules and associated guidance, ensure clients are supported by being better informed about the underlying financial planning methodologies and assumptions used in support of the recommendations made by their financial planner when developing their plan. Such transparency also serves to enhance the financial planner-client relationship by encouraging dialogue and engagement; thereby, building greater trust.

"CFP professionals and QAFP professionals use technology throughout their practice and to support interaction with clients. The rules reflect this reality and set clear expectations around financial planners using and relying on technology," said Julie Seberras, CFP®, Senior Manager, Wealth Planning Support at TD Wealth and a member of the Technology Working Group that developed the rules as well as the Standards Panel.

The rules were developed by a working group established by the Standards Panel following a survey of professional financial planners in October 2020. The Standards Panel issued the draft rules for stakeholder consultation in January 2021, and they final rules were approved by the Standards Council in March 2021. The new rules of conduct came into effect on July 1, 2021.

Learn more about the new technology rules, visit the Standards of Professional Responsibility on FPCanada.ca.

About FP Canada

A national professional body working in the public interest, FP Canada is dedicated to championing better financial wellness for all Canadians by leading the advancement of professional financial planning in Canada. There are nearly 20,000 professional financial planners in Canada who, through CFP certification and QAFP certification, meet FP Canada's standards. Learn more at FPCanada.ca.

About The FP Canada Standards Council

A division of FP Canada, the FP Canada Standards Council establishes and enforces financial planning standards, sets the certification requirements for professional financial planners and develops and delivers certification examinations. The FP Canada Standards Council ensures FP Canada certificants―Certified Financial Planner professionals and Qualified Associate Financial Planner professionals―meet appropriate standards of competence and professionalism through rigorous requirements of education, examination, experience, and ethics. Learn more at FPCanada.ca.

SOURCE FP Canada

For media inquiries, please contact: Satish Sarangarajan, FP Canada, [email protected] , 416-953-1020

Related Links

https://www.fpcanada.ca/

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FP Canada

A national certification and professional oversight body working in the public interest, FP Canada™ is dedicated to championing better financial wellness for all Canadians by leading the advancement of professional financial planning in Canada. Through the FP Canada...