Smiling couple sitting at a table with an advisor, with laptop and papers.
Photo credit: GettyImages/kate_sept2004

We’re living in an era characterized by economic volatility and financial uncertainty. From unsettled international relations to lingering concerns about inflation, current and recent events have Canadians feeling concerned about their financial future.

In this climate, professional financial planning is invaluable. The question is, how do we ensure that the advice planners are offering is reliable and of high quality? And, just as importantly, what can we do to assure consumers that they can place their trust in financial planning professionals? At a time when information overload and online misinformation are all too real, we must work harder than ever to maintain credibility and add value.

While every planner wants to safeguard their clients’ interests, knowing how to do that can be a challenge. This is especially true given the complexity of financial planning and the virtually infinite number of scenarios that planners encounter. That’s where professional and ethical standards come in.

By setting clear expectations for planners about their duties to clients and other members of the profession — and taking disciplinary action against those who fail to meet them — standards-setting bodies strengthen the integrity of the profession. It’s incumbent upon these organizations to ensure that the ethical and professional requirements for financial planners remain high.

The FP Canada Standards Council is an example. It sets, maintains and enforces the standards of professional responsibility, a touchstone for CFP professionals and QAFP professionals. These standards have been developed by an independent panel composed of CFP professionals, licenced financial planners from Quebec and at least one member of the public.

The standards of professional responsibility contain a code of ethics, rules of conduct, fitness standards (which set good character requirements for new and continued certification) and practice standards. They provide rules and guidance on how planners are expected to behave in relation to their clients, as members of a profession and in relation to FP Canada.

The standards are updated regularly to ensure they reflect the ever-evolving Canadian regulatory environment, the expectations of clients and the global requirements established by the Financial Planning Standards Board. The Standards Council also oversees a formal complaint process focused on upholding the public interest while ensuring fairness and due process for CFP professionals and QAFP professionals.

Having rigorous professional standards and the disciplinary processes to enforce them is critically important. We must also ensure that these standards are developed by qualified individuals who represent the diversity of the profession, and that they’re thorough. Doing so enhances client trust, transparency and accountability, thereby fostering a more resilient and reliable financial system that Canadians can count on.

Serving the public

Strong professional standards are first and foremost about serving the public; they’re the planner’s pledge to clients. Canadians should view these standards as setting the expectations for how they’ll be treated by the financial planning professionals who adhere to them. Their planners are duty-bound to help them achieve their goals ethically, competently and diligently. For planners, uncompromising professional standards provide direction and guidance in challenging situations. Following this guidance helps planners meet client needs with integrity, build trust and strengthen client engagement.

When it comes to advocating for rigorous professional standards, we all have a role to play. Financial services organizations can work to strengthen their own standards while promoting the need for robust financial planning qualifications to policymakers and regulatory bodies. Such advocacy should focus, at least in part, on the benefits of ensuring planners adhere to a comprehensive set of standards and will be subject to a thorough, fair and impartial complaint review and disciplinary process, should the need arise.

If you’re a current or prospective financial planner, do your research and seek new or additional certifications from organizations that set and maintain high standards. In addition to maintaining competency and technical knowledge, stay up to date on changes to the standards you’ve agreed to adhere to — and keep an eye out for planners who may not be upholding their professional duties.

Spreading awareness of the value of high professional standards and a fair and thorough enforcement process is also key. One simple and impactful step planners can take is proudly displaying their certification from an organization with an exemplary certification standard and standards-setting division. In so doing, they can assist Canadians in identifying them as professionals who obtained a rigorous certification, are duty-bound to put their clients’ interests first and subject to processes that ensure they remain accountable.

We must work together to continually strengthen professional standards and provide clarity around the value they provide. The continued credibility of the financial planning profession — and the financial well-being of Canadians — depends on it.