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CFP a Measure of Trust
CFP a Measure of Trust

Financial planners deal with one of the most personal and sensitive aspects of people's lives: personal financial security. As a result, TRUST is at the heart of the financial planning relationship -- trust in the planner's competence, integrity and objectivity, and trust that the planner will act first and foremost in your best interests.

The following answers some of the more frequently asked questions about financial planners and financial planning. It is meant to help you make a decision about using a financial planner and describes the high standards of conduct you can expect from a Certified Financial Planner TM licensee.

Question: What do the letters "CFP" mean?

Answer: The letters "CFP" stand for Certified Financial Planner(TM). The CFP TM mark identifies individuals who are dedicated to a high level of professionalism in providing financial planning advice. The CFP credential assures the public that those financial planners who are CFP licensees have agreed to adhere to the highest internationally recognized standards of competence and ethical practice as set out by the Financial Planners Standards Council (FPSC).

Question: Why is it important to deal with a CFP licensee?

Answer: Individuals who wish to attain the CFP designation must meet education, examination, experience and ethical requirements set by FPSC, including:

  • EDUCATION

    Successful completion of an approved educational program.
    Fulfillment of annual continuing education requirements to keep abreast of planning strategies and financial trends.

  • EXPERIENCE

    A minimum of two years' work experience in a financial planning related position.

  • EXAMINATION

    Successful completion of a rigorous examination that covers the financial planning process, tax planning, employee benefits, retirement planning, estate planning, investment management, insurance planning and ethics.

  • ETHICS

    Adherence to a professional code of ethics which requires all CFP licensees to act in a ethical and professionally responsible manner in all professional services and activities.

Question: Are CFP licensees found only in Canada?

Answer: There are more than 10,000 CFP licensees in Canada, The CFP is an internationally recognized designation held by over 50,000 people in 12 countries around the world.

Question: How do I know if my financial advisor is a CFP licensee?

Answer: Look for the distinctive CFP certification mark, FPSC logo, the initials CFP or the words Certified Financial Planner. Only FPSC authorize an individual to use these three marks. You can also ask to see the planner's current CFP license or call FPSC at (416) 593-8587 to verify a planner's status as a CFP licensee.

Question: What can I expect from the financial planning process?

Answer: Financial planning involves determining how individuals can meet their life goals through proper management of their financial resources. This broad-based approach to providing financial advise distinguishes financial planning practitioners from other professional advisors who typically focus on only one area of a person's financial life.

Question: What is a Financial Planners Standard Council (FPSC)?

Answer: FPSC is a non-profit organization incorporated in 1995 to benefit the public and the financial planning profession by establishing and enforcing uniform standards of education, experience, examinations and ethics for financial planning professionals.

FPSC grants the use of the CFP certification marks to individuals who meet its standards.

The following organizations support FPSC:

The Canadian Association of Financial Planners, Canadian Association of Insurance and Financial Advisors, The Canadian Institute of Financial Planning, Certified General Accountants Association of Canada, Credit Union Institute of Canada, and The Society of Management Accountants of Canada.

Question: What standards guide the professional conduct of a CFP licensee?

Answer: CFP licensees must follow a professional code or ethics, The CFP Code of Ethics is designed to serve you better by requiring disclosure of pertinent information about a CFP licensee and describing the behavior you should expect from your planner. A CFP licensee is obliged to disclose relevant information that might affect the financial planning relationship, such as sources of compensation including fees or commissions and any potential conflicts of interest that might compromise the planner's objectivity. You can view the CFP Code of Ethics in full at www.cfp-ca.org.

For more information, contact:

FINANCIAL PLANNERS STANDARDS COUNCIL
1600-505 University Avenue
Toronto, ON M5G 1X3
Phone (416) 593-8587
Fax (416) 593-6903
E-mail inform@cfp-ca.org
Web site www.cfp-ca.org

CFP and Certified Financial Planner certification marks are used by FPSC under license agreement with the CFP Board of Standards, Inc.