The organization has published its annual report revealing changes and enforcement in financial planning standards
Canadian financial planners who fell below required standards were more likely to be suspended last year but less likely to be banned.
The newly published FP Canada Standards Council 2022 Report reveals that 73% of complaints that led to a hearing panel resulted in suspension, a sharp rise from 2021’s 45%, while non-cooperation (temporary or permanent bans) fell from 18% to 13%, letters of admonishment rose from zero to 13%, and permanent bans/revocations fell from 36% in 2021 to zero last year.
2022 was a year of change for financial planning standards with the FP Canada Standards Council publishing new Projection Assumption Guidelines in partnership with the Institut québécois de planification financière (IQPF) and new guidance on disclosure requirements.
The FP Canada Standards Council Competency Profile was also reviewed with two distinct profiles created for CFP professionals and QAFP professionals.
It also launched a reimagined QAFP certification and updated path to QAFP certification, focused on accessibility and aligned to the specific knowledge and competency expectations for practicing QAFP professionals.
Top complaints
Among the complaints received by the FP Standards Council the highest share related to criminal offences (12%), suitability (11%), client service (10%), integrity (8%), diligence (8%), conflict of interest (7%), client first (7%), and disclosure (6%).
However, the ones that resulted in investigations were led by suitability (24%), integrity (16%), conflict of interest (16%), and misappropriation (8%).
"The Standards Council is dedicated to supporting professional financial planners in understanding and meeting their professional responsibilities," said Damienne Lebrun-Reid, Vice President of Standards, Certification and Enforcement at FP Canada. "In 2022, the Standards Council embraced opportunities to support financial planners and ensure they have the knowledge, competencies and tools to meet the high standards of professionalism expected by Canadians."
