New edition of guidelines released as title-restriction legislation begins to take hold across Canadian provinces
In keeping with their commitment to establish consistency throughout the country’s financial-planning industry, FP Canada and the Institut québécois de planification financière (IQPF) have jointly published an update to their unified set of financial planning definitions and standards.
The updated version of The Canadian Financial Planning Definitions, Standards & Competencies includes a unified code of ethics and a common set of practice standards for holders of the Certified Financial Planner and Qualified Associate Financial Planner certifications, as well as the Financial Planner title in Quebec, to abide by.
With an estimated 23,000 financial planners being held to these standards, the publication provides an important resource for financial planners, industry firms, financial planning educators, regulatory bodies, and other stakeholders. For the Canadian public, it offers clarity on what they should expect of a professional financial planner anywhere in Canada.
“This is the only reference document to clarify the definitions and standards applicable to financial planning in Canada,” IQPF President and CEO Jocelyne Houle-LeSarge said in a statement.
FP Canada President and CEO Cary List also highlighted the progress the two organizations have made toward harmonizing professional financial planning across Canada in recent years. “This updated publication represents another important milestone, especially as provinces begin to establish restrictions on the use of the ‘Financial Planner’ title,” List said.
In July, the government of Saskatchewan passed The Financial Planners and Financial Advisors Act, which legally restricts who can call themselves a “financial planner” or “financial advisor” in the province.
In Ontario, legislation around title restriction comes via the Financial Professionals Title Protection Act, 2019, which received Royal Assent in May 2019. While it has not yet been proclaimed into force, the Financial Services Regulatory Authority of Ontario (FSRA) has proposed rules and guidance that would define the financial planner/financial advisor protection framework.
The FSRA has opened a public consultation on those proposed rules and guidance, setting a deadline of November 12 for stakeholders to submit their comments.
