A recently released FP Canada report addresses projection assumptions, disclosure requirements and certification exam options for financial planners and candidates.

The FP Canada Standards Council 2022 Report also reevaluates and updates existing standards and guidelines and shares conclusions of the Competency Profile Validation Project. 

The report emphasizes two competency profiles: Certified Financial Planner and Qualified Associate Financial Planner. This distinction is accompanied by variations in certifications and expectations in standards of professional practice, such as a new set of professional conduct skills that emphasize ethical behaviour and compliance among financial planners. 

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The Council says it has seen an influx of cases around conflicts of interest and compensation, leading to a review of standards of professional responsibility, which will be updated by spring 2024 after further consultation this fall.

The report also shares the 2022 Projection Assumption Guidelines, which were released in partnership with the Institut québécois de planification financière. These guidelines protect planners as they provide long-term projections and rates of return that are transparent, objective and based on reliable sources. 

“Regardless of the underlying data source, the financial planner should document the rates used and the rationale to ensure the assumptions are both sound and supported, and the assumptions used should be communicated to the client,” says the report. 

The report also says FP Canada will continue to provide exam flexibility through in-person and remote proctoring options, and an additional exam in February.