July 3, 2009
1. Why is FPSC proposing these changes to CFP certification, and why now?
The proposed changes are in keeping with FPSC’s mandate of developing, leading and promoting appropriately relevant and rigorous standards of competence and ethical behaviour for financial planning in Canada. The changes reflect the needs of an ever-evolving profession that must serve the needs and expectations of all stakeholders within the financial planning landscape. It’s also important to note that the proposed changes strengthen the alignment of the CFP certification process with the CFP Professional Competency Profile.
Released in 2006, the Competency Profile helped to further define the role of a CFP professional in helping Canadians achieve their life goals. It provides a detailed articulation of the vast array of knowledge, skills and competencies required of a professional financial planner. FPSC uses the Competency Profile as the foundation for CFP certification.
2. Will any of the changes in the Exposure Draft affect current CFP professionals?
Current CFP Professionals will not be affected by these changes.
CFP certification is earned by meeting initial licensing requirements, and the license is maintained by meeting ongoing requirements. These ongoing requirements include continuing to abide by the Code of Ethics and pursuing ongoing continuing education.
The Capstone course focuses on integrating knowledge gained in the core curriculum across the financial planning competency and knowledge domains and applying that knowledge to complex financial planning situations. It also requires the completion of a financial plan. The Capstone course will be incorporated into FPSC's education requirements for CFP certification.
It is important to note that education providers are free to develop their own unique Capstone course, which FPSC will review and approve.
4. Where can I take a Capstone course?
Capstone courses will be delivered through approved Capstone course providers (many of whom also offer Core Curriculum courses). FPSC will be providing direction and content to Capstone course providers to ensure consistency of course outcomes.
5. When will the Capstone course be offered?
Starting in 2009, education providers will begin offering approved Capstone courses. A list of the approved course providers will be made available on our website.
If you are currently taking courses towards CFP certification and don’t plan to sit for examination prior to 2010 you should inquire about your education provider’s plans to offer an approved Capstone course. If your provider does not plan to offer a Capstone course, you can complete the Capstone course independent of the Core Curriculum, through any approved Capstone course provider.
6. Will PCE1 and PCE2 be multiple choice exams and how long will each be?
PCE1 will be a multiple choice exam exclusively. PCE2 will incorporate other types of test items, including short answer questions.
The precise durations of the exams have not yet been determined.
7. How often will PCE1 and PCE2 be offered?
Initially, PCE1 will be offered twice a year (planned for June and October), and PCE2 will be offered once a year (planned for October). Once the volume of candidates increases for PCE2, it will be offered twice a year as well.
8. If I do not pass the current CFP Examination by June 2010, will the old policies still apply to me?
If you do not pass the (current) CFP examination by June 2010, you will have to follow all the new requirements for obtaining the license to use the CFP marks, including successful completion of PCE1, the Capstone course and PCE2.
You will follow the current licensing requirements for CFP certification if you have passed the (current) CFP Examination by June 2010 (requiring application by 31 December 2009).
9. Why is one year of work experience required to write PCE2?
CFP certification is a work-based credential. Work experience builds on the education gained in the Core Curriculum program and Capstone course. Those who earn the credential have demonstrated that they can effectively and professionally perform the role of a financial planner. Gaining work experience is an essential part of developing the skills required of a CFP professional. In addition, experience has shown that candidates who have some work experience prior to sitting their certification exam have a higher likelihood of success on the examination.
The PCE2 is intended to assess advanced financial planning skills that require actual work experience. We expect that many candidates will already have all three years of work experience before sitting the PCE2, as this will provide the best foundation for taking the exam. However, we require that at least one year of work experience is completed before the exam.
CFP®, CERTIFIED FINANCIAL PLANNER® and 
® are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. (FPSB). Financial Planners Standards Council is the marks licensing authority for the CFP marks in Canada, through agreement with FPSB.
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