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
902-375 University Ave
Toronto, ON M5G 2J5
E-mail inform@fpsc.ca
Web site www.fpsc.ca
CFP and Certified Financial Planner certification marks are used by FPSC
under license agreement with the CFP Board of Standards, Inc.
