Question What do the letters "CFP" mean? Answer The letters "CFP" stand for Certified Financial Planner. The CFP mark identifies individuals who are dedicated to a high level of professionalism in providing financial planning advice. In the absence of uniform government regulation of financial planners, the CFP credential assures the public that those financial planners who are CFP licensees have agreed to adhere to high standards of competence and ethical practice as set out by the Financial Planners Standards Council (FPSC). Question Why is it important to deal with a CFP licensee? Answer Individuals who wish to attain the CFP designation must meet education, examination, experience and ethical requirements set by the FPSC, including: Education • Successful completion of an approved educational program. • Fulfillment of annual continuing education requirements to keep abreast of planning strategies and financial trends. Experience A minimum of two years' work experience in a financial planning related position. Examination Successful completion of a rigorous examination that covers the financial planning process, tax planning, employee benefits, retirement planning, estate planning, investment management and insurance. Ethics Adherence to a professional Code of Ethics which requires all CFP licensees to act in an ethical and professionally responsible manner in all professional services and activities. Question Are CFP licensees found only in Canada? Answer There are 6,400 CFP licensees in Canada. The CFP designation is an internationally recognized designation held by over 40,000 people around the world. Question How do I know if my financial advisor is a CFP licensee? Answer Look for the distinctive CFP certification marks, the initials CFP or the words Certified Financial Planner. In Canada only the FPSC can authorize an individual to use these three marks. You can also ask to see the planner's current CFP license, or call the FPSC at 416-593-8587 for a list of CFP licensees in your area. Question What can I expect from the financial planning process? Answer Financial planning involves determining how individuals can meet their life goals through proper management of their financial resources. This broad-based approach to providing financial advice distinguishes financial planning practitioners from other professional advisors who typically focus on only one area of a person's financial life. Question What is the Financial Planners Standards Council (FPSC)? Answer The FPSC is a non-profit organization incorporated in 1995 to establish and enforce uniform standards of education, experience, examination and ethics for financial planning practitioners. The FPSC grants the use of the CFP license to individuals who meet its standards. The following organizations are members of the FPSC: Canadian Association of Financial Planners, Canadian Association of Insurance and Financial Advisors, Canadian Institute of Chartered Accountants, Canadian Institute of Financial Planning, Certified General Accountants Association of Canada, Credit Union Institute of Canada, and the Society of Management Accountants of Canada. Question What standards guide the professional conduct of a CFP licensee? Answer CFP licensees must follow a professional Code of Ethics. The Code is designed to better serve you, the consumer, by requiring disclosure of pertinent information about a CFP licensee and describing the behavior you should expect from your planner. A CFP licensee is obliged to disclose relevant information that might affect the financial planning relationship, such as sources of compensation including fees or commissions, and any potential conflicts of interest that might compromise the planner's objectivity. Question Does the FPSC accept complaints against CFP licensees? Answer The FPSC will respond to alleged violations of the Code of Ethics brought to its attention in writing. If a CFP licensee fails to meet the high standards of the Code of Ethics, appropriate disciplinary action will be taken by the FPSC. The most severe of these actions is the revocation of the CFP license. |