Proposed proficiency requirements for financial planning do not serve the public interest, says International CFP Council

DENVER, COLORADO, DECEMBER 9, 1999 - The Canadian Securities Administrators' (CSA) recently-proposed proficiency requirements for the delivery of financial planning advice does a disservice to consumers and to the development of financial planning as a profession in Canada, according to the International CFP Council (CFP Council).

A global forum for financial planning standards-setting organizations, the CFP Council supports the regulation of individuals holding themselves out as financial planners but believes that, in the public interest, the CSA should reconsider its current proposal and set higher education, practice and ethical standards for people offering financial planning advice.

"CSA had the right idea but seems to have ended up with a solution that could potentially create more confusion and risk for Canadians looking for a qualified financial planner," said Patricia P. Houlihan, CFP, chair of the International CFP Council's Public Awareness Committee. "The difference between someone offering financial planning as an incidental part of their financial services and someone professionally qualified to offer comprehensive financial planning advice is significant, yet with the CSA's current proposal, Canadians may not be able to make that distinction."

Competency and ethical practice are the cornerstones of any profession, be it law, medicine or financial planning. CSA's decision to exclude adherence to a professional code of ethics and to forgo monitoring ongoing education requirements to maintain competency for those offering financial planning advice makes it more difficult for consumers to find a financial planner they can trust. Difficult but not impossible, thanks to the CFP Council's affiliate in Canada, the Financial Planners Standards Council (FPSC), which offers the globally-recognized Certified Financial Planner designation to those who meet rigorous education, examination, experience and ethics requirements.

In Canada (and other countries around the world), the CFP designation is based on an approved educational program focused on financial planning, an independently-developed professional proficiency exam, appropriate professional experience, adherence to a rigorous Code of Ethics, and completion of 30 hours of continuing education every year to stay current with changes in the field of financial planning. Consumers looking for a competent and trustworthy financial planner who will put their interests first can look to the CFP designation.

Established in 1990, the 11-member CFP Council is a forum of financial planning standards-setting organizations that seek to advance the profession of financial planning by establishing CFP certification programs in their respective countries. Each Council member sets and administers its CFP certification program to accommodate for cultural, educational or regulatory differences. Nonetheless, all CFP licensees throughout the world must meet initial and ongoing competency and ethics requirements, as described above. There are currently over 50,000 CFP licensees worldwide. For more information on the CFP Council, visit its website at www.CFP-Council.org.

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