Advocis unveiled the first version of its Best Practices Manual this morning for review by regulators, partners and association members. The manual is intended to become the “gold standard” of best practices for the advisor community.
“This is a major milestone for the association,” says Donna Muirhead, Advocis VP of professional development. “We expect that this manual will have a significant positive industry-wide effect on raising the bar for professional standards and practice management.”
The 250-plus page manual is an extension of Advocis’ ongoing campaign to elevate the financial planning industry to one that focuses on the role of advice-giving, rather than sales transactions. Building on the practice standards outlined by the Financial Planning Standards Council and the CLU Institute, the manual incorporates financial planning and risk strategies, asset allocation and insurance disciplines, as well as client relationship issues.
While the document contains checklists, templates and real-life examples of advisor situations, the guidelines are not mandatory for Advocis members. “These best practices are recommended, they’re not a must,” saus Rick Johnson, director of Advocis’ practice advisory services. “Our job is to promote the profession, and it’s part of our overall strategy to raise the bar,” he said.
Johnson says that the manual was created to achieve three things: elevate the process of advice giving; assists advisors with their profitability and business models; and reduce their exposure to E&O [errors and omissions] insurance claims.
The manual — called a “living, breathing work in process” — is provided free of cost to all Advocis members, and is available to non-members for $495, plus applicable taxes.
A best practices committee will be reviewing feedback from the advisor community through various chapters in Canada; a revised edition of the manual is expected to be released at the end of the year.