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In my last column, I delved into the critical importance of rigorous professional financial planning standards. Coupled with a fair and thorough enforcement process, they safeguard the public interest and provide planners with the guidance to help their clients navigate complex financial circumstances. One of the biggest benefits of adhering to these standards is the trust it builds between planners and their clients.

While trust is always foundational to financial planning practice, it’s taken on even greater significance of late. Recent events have led to economic uncertainty and unpredictable international relationships, both of which can foster feelings of mistrust. For many, such feelings are compounded by the spread of online and social media misinformation.

In this climate, knowing where to turn for trustworthy information — about one’s finances, among other matters — can be a challenge. The resulting uncertainty can present challenges for financial planners who want to build strong, long-term relationships with their clients. To overcome them, we must focus on continuing to build trust in a world where it is being eroded daily.

As previously mentioned, one step every planner can take is earning a certification from a standards-setting body that creates and enforces rigorous professional standards. Once current and prospective clients understand that their planner is duty-bound to put their interests first, they’re far more likely to see the professional who’s helping them as a trusted partner.

Ensuring clients have an awareness of the ways that standards safeguard them can help instill trust. A good example is the assurance that planners handle ethical issues such as those related to confidentiality and conflicts of interest appropriately. But professional standards are just one piece of a larger puzzle.

A foundation of trust

When attempting to build solid planner-client relationships, actively demonstrating expertise can go a long way. Providing financial advice that’s holistic and personalized is critical, but so is staying current regarding financial trends, professional knowledge, regulatory changes and other industry matters.

Understanding the challenges your clients are facing right now, and how you can help them navigate the volatility during these uncertain times, can help you establish yourself as a trusted expert.

One way to stay up to date on relevant issues is through continuing education (CE). Planners who actively seek out such opportunities to enhance their knowledge and skills will be better equipped to support their clients and establish their credibility.

Beyond embracing a commitment to learning, planners can also build trust by focusing on communication. Canadians often say that one of the traits they value most in a financial planner is the ability to listen and understand what’s important to their clients. I frequently hear that, for consumers, working with a professional who demonstrates a deep understanding of their goals, values and risk tolerance is critical. For many, being listened to and communicated with clearly creates a sense of safety — and reenforces the fact that their best interests are always their planner’s top priority.

While Canadians want to work with financial planners who are knowledgeable about their circumstances and supportive of their goals, empowering consumers to make their own financial decisions is also critical. It can lead to stronger trust-based relationships because it highlights the active role that clients are encouraged to play in the financial planning process.

Through education, planners can help their clients grow their financial literacy, and their confidence in handling money. When you ensure an individual understands the financial advice they’re offered, and its rationale, you treat them as a partner in their financial wellness. To that end, it’s helpful for planners to explain financial concepts clearly, using simplified language and relatable examples.

Members of the financial planning profession know the value of forming strong connections built on trust. Doing so can lead to long-lasting financial planning relationships, during which planners can support their clients through life’s milestones and help them achieve their goals.

In an era where online misinformation and uncertainty about the future are prevalent, it’s more important than ever for financial planning professionals to act as trusted advisors who their clients can rely on. The good news is that planners who understand this can take active steps to ensure that these essential connections flourish.

By working to build trust, and remaining consistent in efforts to do so, financial planners can help ensure that Canadians are equipped to handle uncertainty and volatility.