Membership Standards

Immediate Adoption of the Fiduciary Standard

All members upon joining must pledge to abide by FPAC™’s Fiduciary Pledge, with immediate effect. 

Good Standing Requirement

Whereas FPAC™ members are expected to hold either the CFP, R.F.P. or Pl. Fin. designations, members must remain in good standing with the relevant designation body — FP Canada, IAFP, or IQPF, respectively.

Disclosure Objective

Ensuring transparent disclosure is a key objective of FPAC™, in matters relating to compensation, title standardization, transparency, and client protection.

FPAC™ members are expected to:

• Use the title of ‘Financial Planner’, as applicable to all members who hold CFP, R.F.P. or Pl. Fin. designations.

• When required to use other titles, ‘Financial Planner’ should be included among those listed.

• Ensure clients obtain written acknowledgement of all fees, costs and taxes, given that current systems do not enable full disclosure. 

• These must be expressed in both percentage and dollar terms, and be charged to clients no less often than annually.

Industry Advocacy

FPAC™ frequently lobbies for improvements in the financial planning industry through petitions and campaigns directed at governments, regulators, manufacturers, dealers, and all relevant parties.

We expect all FPAC™ members to support these petitions, namely:

1. A call for full and complete disclosure of fees and costs on client investment and insurance statements
2. A call for the banning of all “soft-dollar” and perk compensation
3. A call for the creation of custom commission schedule insurance policies
4. A call for the end of lifetime vesting of insurance policies
5. A call for mandatory disclosure of insurance compensation
6. A call for the end of production-based bonuses
7. A call for an end to product sales quotas
8. A call for the end of embedded compensation on investment products

Industry Development

Our mission to evolve the industry into a profession of the highest calibre is an all-hands-on-deck effort, and our members are expected to do their bit.

In the following ways, our members are expected to make tangible, regular contributions to the betterment of the financial planning industry.

• Actively engage in mentorship of fellow financial planners
• Volunteer 10 hours per year to industry development initiatives
• Help develop financial planning’s body of knowledge
• Give time to review & provide feedback on submitted articles
• Support the advocacy priorities of FPAC™
• Support the association through annual membership fees 

Evidence-Based Approach

FPAC™ members are expected to base their decision-making and advice on an evidence-based approach to financial planning.

As such, in accordance with the principles of The Fiduciary Pledge the member’s recommendations to clients must be rooted in due diligence and sound consideration for their situation and needs.

Specifically:

1. Financial recommendations must be based on planning work completed for the client. No recommendations are to be made ad hoc.
2. Members are required to conduct a risk profiling questionnaire with their client, based on academically verified approaches, prior to any investment recommendations being made.
3. Clients are to be provided with investment policy statements based on the risk profiling process in combination with additional information provided by the client, prior to any investments being made.
4. Insurance applications must be accompanied by needs analysis using methodologies that are quantitatively justified and recognized.