Financial Planning Standards Council’s (FPSC) member organizations Friday ratified new by-laws enacted by the FPSC board in November 2012, which includes a change in structure that eliminates the member organization framework for FPSC.

This change reflects the recognition that FPSC will best serve its mandate by operating as an autonomous body independent of its earlier organizational member model.

The new structure replaces the seven member organizations with 10 individual, independent members who will also serve as the directors of the board. These individuals will be representative of FPSC’s core stakeholders — the public, the CFP professional community and the Quebec financial planning community.

Established in 1995, FPSC was formed with the support of member organizations, which came together to further the development of a strong financial planning profession in Canada, through CFP certification. FPSC’s governance has continued to evolve over the years to match FPSC’s growing role in the development of the financial planning profession in Canada.

The new board and member structure will be established as follows:

  • six CFP professionals, vetted by the nominating committee and elected by CFP professionals;
  • three public directors directly representing the public interest, selected by the nominating committee and approved by the board; and
  • one licensed financial planner in the province of Quebec, recommended by Institut québécois de planification financière (IQPF), selected by the nominating committee and approved by the board.

“The member organizations have played a critical role in helping to establish FPSC and in its evolution these past 17 years. After an extensive governance review, we concluded that with a strong board and executive team in place, and with over 17,500 current CFP professionals contributing to and upholding the standards of the profession, the time is right to implement a structure that better reflects FPSC’s mandate,” says Jim Kraft, chairman of FPSC’s board of directors.

The seven organizations being replaced are: the Canadian Institute of Chartered Accountants (CICA); Canadian Institute of Financial Planners (CIFPs); Financial Advisors Association of Canada (Advocis); Certified General Accountants Association of Canada (CGA Canada); Credit Union Institute of Canada (CUIC); Institut québécois de planification financière (IQPF) and Society of Management Accountants of Canada (CMA Canada).

“I look forward to continuing to work with the Board under this new model, which positions us well as we continue to advance the standards and professionalism of financial planning for the betterment of all Canadians,” says Cary List, president & CEO, FPSC.

“We also look forward to continuing to work closely with the former member organizations and other stakeholders in achieving our common goals.”