The FP Canada Standards Council, a division of FP Canada, announced on April 20 changes to FP Canada Standards Council Standards of Professional Responsibility. The changes take effect May 1, 2022.
These standards define the ethical and professional responsibilities of Certified Financial Planner professionals and Qualified Associate Financial Planner professionals.
The changes focus in part on greater transparency in the public interest, explains FP Canada Standards Council. “For example, under Rule 7 of the Rules of Conduct, all disclosures to clients regarding how a certificant or the certificant's firm is compensated for providing products and services must now be made in writing. The result is increased disclosure to clients and less room for confusion or misunderstanding.”
Another change is related to accessibility. “Rule 13 has been updated to state that certificants must fulfill their professional responsibilities in a manner that is not only timely and thorough, but accessible and understandable, to clients. This change, meant to ensure that practice and communications are barrier-free to persons with disabilities and those who need accommodation, is consistent with FP Canada's commitment to equity, inclusivity, and diversity,” says the Council.
A new fitness standard has also been added to the Standards of Professional Responsibility, allowing FP Canada to consider whether an individual should become – or remain – certified if they were denied registration of a professional license or credential by another regulator (unless the denial was administrative in nature). “Such a denial of registration would trigger a presumptive bar to new or continued certification, giving the FP Canada Standards Council's Conduct Review Panel the opportunity to consider whether the certificant meets the high standards of competence and professionalism and are fit for certification,” explains the Council.
In addition, the term "client" has been defined more broadly. The new definition ensures that all individuals who receive financial planning services, advice, or recommendations from a certificant – not just those who receive formal financial plans – are afforded the protections of a client, as set out throughout the Standards of Professional Responsibility.
"Regular review of existing standards is critical," stated Lesley Poole, CFP, Chair of the Standards Panel. "The latest amendments reflect changes both within the profession, and in the expectations of Canadians seeking financial planning services."
"The FP Canada Standards Council is dedicated to setting financial planning standards that reflect the Standard Council's public interest mandate," stated Damienne Lebrun-Reid, Executive Director, Standards & Certification and Head of the FP Canada Standards Council. "To meet that objective, we continue to ensure that our standards are clear, transparent, and relevant."
