FPSC President says time to stop confusion - Securities Administrators agree CFPs are qualified professionals

15 February 1999, Toronto - "It is time to stop conjecture that fuels confusion about who are or will be considered qualified financial planners in this country," says Financial Planners Standards Council (FPSC) President Don Johnston. "Ontario Securities (OSC) Chairman David Brown agrees that the current OSC review into the matter of regulation of financial planners is designed to stop unqualified planners from practising. FPSC in fact was created to address the same concern expressed by David Brown, and it is why we continue to work hard to develop the highest standards possible for financial planners. "Our commitment to this philosophy is why Securities Administrators across this country recognise that those who have earned the CFP designation are fully qualified to hold themselves out as financial planners," says Johnston.

The OSC initiated the review process, but it is being done by the industry members. Johnston says, "FPSC is pleased that we are able to help the OSC and the industry members in the work being done to protect the public. While the discussion is about a common examination, the working group recognizes that you cannot set an examination without agreement on a body of knowledge to measure.

"About a year ago FPSC began an exhaustive review of its own body of knowledge, which initially received input from the Canadian Securities Institute (CSI) and the Institute of Canadian Bankers (ICB), as well as continuing input from our seven remaining members. More recently, but also before the OSC initiative, we undertook a survey of hundreds of CFP licensees practising in the field to ensure that our body of knowledge was current and relevant. We are pleased that this rigorous body of work will be included in the review process," says Johnston.

On behalf of FPSC members, the Investment Funds Institute of Canada and the Canadian Institute of Insurance and Financial Advisors, the Council has provided its own educational specialist to assist in this pursuit of a mutual solution. "We are sure all this will augment the work done on behalf of the CSI by Brendan Wood. We also acknowledge the contribution that the ICB is making to the OSC initiative in the same regard," says Johnston.

There has already been a resounding endorsement of the very high standards of ethics, education, experience and examination set by the FPSC and met by every financial planner licensed to use the CFP mark beside their name. There are 8,000 CFP licensees in this country and another 15,000 students taking courses in preparation of writing FPSC's professional proficiency examination. And businesses in every sector of the financial services industry are actively encouraging their employees to earn the CFP designation.

Johnston is confident that if the OSC process is modelled after that of the North American Securities Administrators Association in the United States as suggested by Senior OSC Counsel Julia Dublin, CFP licensees will be exempted from the resulting proposed test. The new regulatory examination in the States only touches on about 5O% of the topics tested in the CFP Board examination.

"I firmly believe there should be a uniform test for all individuals who want to hold themselves out as financial planners. And the Canadian consumer will be best served when that test is set and administered by the organization that has the experience required to do so efficiently, competently and effectively. That organization is the Financial Planners Standards Council. It is why the FPSC was created," says Johnston.

"But Glorianne Stromberg is right to be concerned about a process that puts the cart before the horse, as stated in Jonathan Chevreau's column in the National Post. What industry leaders must do first, is decide on just what it is the planner should be tested for in order to safeguard the public from incompetent and unethical advice," says Johnston. "And that is the process we're currently involved in at the behest of the OSC. We look forward to our continued participation, and we believe that we can use the insight and commitment of our highly-professional membership to ensure a satisfactory solution."