Financial Planning Standards Council (FPSC) received an increased number of public complaints about financial planning advice last year, according to its 2017 Enforcement and Disciplinary Review Report.
The report details FPSC’s professional oversight role of setting, maintaining and enforcing professional standards for all CFP professionals and FPSC level 1 certificants in financial planning.
FPSC received 76 complaints in 2017, with an increase in public complaints regarding the suitability of advice.
More than a third (35%) of the complaints received by FPSC in 2017 were closed, while more than half were escalated for further investigation. A further 8%, or 38 complaints, were sent directly to FPSC’s conduct review panel, up from 18 in 2016.
Of these cases, more than a third (37%) were referred to FPSC’s disciplinary hearing panel. Another third (34%) were closed, and 29% were closed with guidance issued to the planner. The guidance covered a variety of issues from conflicts of interest to misleading advice, falsifying signatures and failing to perform due diligence, among other things.
Of the cases that went all the way to FPSC’s disciplinary hearing panel, more than half (54%) resulted in a suspension, 28% ended with their credentials being revoked, and 18% resulted in prohibition on recertification/renewal.
“FPSC is committed to ensuring Canadians have access to and receive financial planning services from highly qualified professionals who are held to rigorous professional standards — including an obligation to place their clients’ interests above all others, to disclose potential conflicts of interest and to act with integrity,” says Damienne Lebrun-Reid, managing director, standards at FPSC, in a statement.
“Setting and overseeing adherence to these standards helps elevate the financial planning profession, ensuring that it is held in the highest regard by Canadians.”