FPSC Rejects Idea of New Exams, New Codes and New Brands of Professional Financial Planners

March 27, 2002, Toronto - In a bulletin to all CFP licensees today, Financial Planners Standards Council (FPSC) President Don Johnston said FPSC could neither endorse nor support some of the stated objectives of the merged membership entity proposed by the Canadian Association of Financial Planners (CAFP) and the Canadian Association of Insurance and Financial Advisors (CAIFA). He noted that some of the initiatives outlined in a discussion document entitled "Towards a Single Professional Organization" would conflict with FPSC's mission to nurture the evolution of the financial planning profession through the establishment of the highest national, cross-industry standards identified by the Certified Financial Planner® (CFP®) designation.

"If the merged membership organization supports our efforts in the future, we welcome it," Johnston said. "However, if its purpose is to act as a standard-setting body with the purpose of branding a new definition of financial planning professional, it will simply add to confusion in the marketplace and industry, and we can neither endorse nor support it."

FPSC believes that one set of standards in proficiency and ethical behaviour is more than enough for any professional and the best way to reduce confusion about who is and is not qualified to offer professional financial planning advice.

"We don't need new codes, new exams or new brands of professional planner," said Johnston. "We do need continuing input and assistance with the development of the CFP certification process that has already garnered industry-wide acceptance, reduces confusion and protects the public," he said. Johnston suggests that the idea of "adding another layer of codes and exams, in order to create the illusion that CFP planners who don't join the new organization are in some way second-class, is contrary to our efforts to reduce the number of titles, designations and terms used to distinguish those who are qualified to offer professional financial planning advice."

Johnston acknowledged that the FPSC is grateful for the participation of the membership organizations, which have for more than six years, "aided our efforts in establishing the highest uniform professional standards in financial planning today." These standards guide more than 14,000 CFP professionals working in all segments of the financial services industry in sufficient numbers and locations to serve the Canadian population.

"CAIFA and CAFP have endorsed FPSC's efforts to reduce confusion surrounding who is and is not qualified to offer the financial planning guidance Canadians have every right to expect of a professional. They have recognized the strides FPSC and CFP licensing organizations around the world have made in benefiting the consumer of financial planning advice. They have recognized and aided FPSC's contribution to the evolution of the profession in Canada and throughout the world," Johnston said. "We hope they will continue to do so."

Financial Planners Standards Council is a not-for-profit organization dedicated to protecting Canadian consumers by establishing and enforcing education and ethics standards for financial planners who hold the Certified Financial Planner designation. FPSC is the Canadian licensor of the internationally recognized CFP certification marks currently used by more than 14,000 planners in Canada, and 63,000 planners in 16 countries around the world.

Mr. Don Johnston is available for interviews.

Contact:
Ann Bowman
416.593.8587 x 225 or abowman@cfp-ca.org