The Current Standard
In addition to the code and standards set out by their regulators and designating bodies, members of the Financial Planning Association of Canada™ (FPAC) have 24 months, from the date of enrollment to adapt their practices to meet FPACs current standard of conduct.
These standards will be reviewed and may be updated every 24 months, and new standards will be established from time to time until such time as the current standard is elevated to meet all of FPACs policy objectives.
Adoption of a fiduciary standard effective immediately.
- Pledging to abide by the Association’s Fiduciary Pledge.
- All members who hold a CFP, R.F.P., or Pl. Fin. designation, and are retail-client-facing, are to use the title “Financial Planner.” Where required to use other titles, “Financial Planner” should be listed as an additional title where possible.
- Annual attestation to the principles and current standards.
- As current systems do not enable full disclosure, members are to ensure
that clients obtain written acknowledgement of all fees, costs and taxes charged to them no less frequently than annually, and expressed in both percentage and dollar terms.
Endorsement of petitions to be passed along to governments, regulators, manufacturers, dealers, and all relevant parties:
- A call for full and complete disclosure of fees and costs on client investment and insurance statements.
- A call for the banning of all “soft-dollar” and perk compensation.
- A call for the creation of custom commission schedule insurance policies.
- A call for the end of lifetime vesting of insurance policies.
- A call for mandatory disclosure of insurance compensation.
- A call for the end of production-based bonuses.
- A call for an end to product sales quotas.
- A call for the end of embedded compensation on investment products.
Career track development: Engage in mentorship.
10 Hours of industry development.
- Body of knowledge development.
- Lend time to review and provide feedback on any articles submitted for consideration.
- Industry structure development.
- Advocate for development as per the policy objectives of this association.
- Association Contribution
Be in good standing with FP Canada (for the CFP designation), the IAFP (for the R.F.P. designation) or the IQPF (for the F.Pl. designation).
Adopt an evidence-based approach to recommendations. Specifically:
- Financial recommendations must be based on planning work completed for the client and not just provided ad hoc.
- Prior to any investment recommendations being made, members are required to utilize a risk profiling questionnaire that is based on academically verified approaches, combined with additional information provided by the client and used to provide clients with investment policy statements prior to any investments being made.
- Insurance applications must be accompanied by needs analysis using quantitatively justified recognized methodologies.