Advocis PFA Program Outline 2020

2020 Professional Financial Advisor Program

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Professional Financial Advisor Program Outline Program Structure The Professional Financial Advisor program is designed for newer advisors as well as those who are established practitioners. Designed to meet the everyday demands of an advisor’s practice, the program is focused on the disciplines of financial planning, practice development, compliance & regulatory topics, ethics and professional standards.

The four courses in the designation program integrate material from each of the disciplines with Practice Development as the core, in a way that is compatible with a Financial Advisor’s development.

Choice of Program Formats: Semester or Self-Study Both formats utilize the same curriculum but allow for different learning style preferences.

The following descriptions will help you choose the approach that best matches your preferred learning style.

Semester Program This four-course program sets a prescribed pace designed to provide candidates with enough time to absorb the material from each of the four disciplines (Practice Development, Financial Planning Fundamentals, Compliance and Professional Standards), test their skills with relevant activities and prepare for the course exams. Each course is six months in duration over a two-year term and includes online discussion groups with fellow candidates, live and recorded webinars, and access to the Corporate Trainer.

Self-Study Program This four-course program study schedule is customizable, allowing candidates to set their own pace rather than follow a prescribed study schedule through courses. There is the flexibility for candidates to adjust within the program’s two-year term to accelerate or to take more time to absorb the material from each of the four disciplines (Practice Development, Financial Planning Fundamentals, Compliance and Professional Standards), test their skills with relevant activities, and prepare for the course exams. Self-Study candidates are supported with a full suite of support resources including review tools, recorded webinars and access to the Corporate Trainer.

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Assessments Candidate learning in both the Semester and Self-Study formats are assessed in the same way.

Practice Development Activities Practice Development activities must be completed in each course. These activities are highly relevant to candidates and the development of their financial advisory practice. Candidates are required to submit completed activities however they are not graded. Instead, Advocis audits the completion of these activities and those candidates whose activities are audited will receive feedback.

Reflective Exercises Candidates perform several reflective exercises in each course. Reflective exercises are based on Practice Development activities. Candidates in the semester program will share their responses to the reflective exercises in discussion posts. Candidates in the self-study program will submit their responses to the reflective exercises for grading.

Exams Financial Planning Modules Each financial planning module has an exam.

Semester: Scheduled Self-Study: Own pace Course Exams Course exams are the summative assessment for the course. To write the course exam, candidates must have successfully completed all assessment requirements within the course.

Semester: scheduled Self-Study: own pace Final Comprehensive Exam To earn the Professional Financial Advisor designation, candidates are required to successfully write the Final Comprehensive Exam.

Semester Program & Self-Study: scheduled four times a year (February, May, August, November). Candidates are required to select the exam that is scheduled closest to their successful completion of Course 4: Fine Tuning your Practice and The Value of Advice.

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COURSE 1

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Business Elements SEVEN MODULES Practice Development (PD)

- Business Planning - Marketing - Prospecting

Compliance & Regulatory (CR)

- Marketing & Communications

Financial Planning Fundamentals (FP)

- Financial Planning Profession & Financial Services Industry Regulation - Financial Analysis - Human Behaviour

WHAT WILL YOU LEARN? PD Modules:

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Develop a business plan Prepare a value proposition, elevator speech, and a personal biography Prepare a marketing plan (as part of your business plan) Determine who your target client is and how to market to them How to prospect for new clients, how to network, and how to develop Centres of Influence

PD Activities: PD Activities complement the modular content and provide practical hands-on learning experience.

- Assess business opportunities and develop an Activity Action Plan

- Define your value proposition and elevator speech

- Develop a plan for asking for referrals

- Develop strategies for networking and building Centres of Influence

- How to prospect, how to network, and how to develop Centres of Influence

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Understand the rules that guide you in how to communicate with clients and prospective clients The importance of accurate and transparent marketing and communications content Be aware of how to market yourself honestly and accurately The rules that guide you in managing business relationships, including how to avoid conflicts of interest

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CR Module:

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Business Elements - continued FP Modules:

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Identify and explain the role of relevant regulatory and oversight bodies in securities and insurance Explain the framework and regulations that are in place to protect Canadians from such threats as the insolvency of a financial institution, unwanted communications and financial abuse and scams Explain time value of money Make financial projections to determine the achievability of goals Evaluate how a client’s current and projected cash flow—including that from their business—may impact their ability to meet their goals Understand how the brain works and makes decisions, including the values, heuristics, emotions and disorders related to money that a client brings to the decision-making process Understand the stages of individual change and what may motivate or inhibit a client in changing their behaviour Understand how a financial advisor’s actions and communications may garner or hinder trust

COURSE 2

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Enhancing Client Connections SEVEN MODULES Practice Development (PD)

- Engagement - Discovery

Compliance & Regulatory (CR)

- Know Your Client and Fact-finding

Financial Planning Fundamentals (FP)

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Credit & Debt Registered Retirement Plans Government Benefit Plans Registered Education & Disability Plans

WHAT WILL YOU LEARN? PD Modules:

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Details about the Client Relationship Cycle, specifically client engagement and discovery Integrate the Client Relationship Cycle with the 6 step Financial Planning Process Interview preparation and questioning techniques for prospective client and client meetings Describe your client process in a way that is aligned with your value proposition and elevator speech How to conduct engagement and discovery client meetings

PD Activities: PD Activities complement the modular content and provide practical hands-on learning experience.

- Prepare for an initial interview with prospective client / client summaries

- Prepare for prospective client and client questions

- Develop a description of your client process

- Evaluate your active listening skills

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CR Module:

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Understand the relevance of rules that guide you in fact finding & discovery Understand the importance of the Know Your Client form Understand the importance of collecting client information beyond the Know Your Client form Understand the appropriate handling of confidential client documents

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Assess a client’s credit worthiness and determine suitable credit facilities Determine optimal debt repayment strategies, including the impact that changes to strategies may have on a client’s debt level, amortization, cash flow and ability to achieve their goals Identify appropriate options and professionals who can help delinquent and insolvent debtors Understand the mechanics of registered retirement savings and income plans Evaluate and recommend tax-efficient wealth accumulation and decumulation strategies that will aid clients in reaching their retirement goals Understand the eligibility for, benefits available, and factors to consider in evaluating decisions to apply for and commence benefits available to clients through Canada’s government benefit programs (including the Canada Pension Plan, Old Age Security, Employment Insurance and the Canada Child Benefit) Understand the eligibility requirements and benefits available to clients through workers’ compensation and income assistance programs Competently advise clients of their government benefit eligibility when they experience life events such as the birth of a child, unemployment, illness, disability and retirement Understand the intricacies of Registered Education Savings Plans (RESP) and Registered Disability Savings Plans (RDSP) Evaluate and recommend optimal strategies to achieve education-related goals and goals for clients with a disability

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COURSE 3

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Building Client Value SIX MODULES Practice Development (PD)

- Needs Analysis - Advice Delivery

Compliance & Regulatory (CR) -

Know Your Product & Suitability

Financial Planning Fundamentals (FP

- Economics - Investments - Taxation

WHAT WILL YOU LEARN? PD Modules:

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Analyze a client’s financial situation and identify gaps between a client’s current situation and their goals Identify opportunities to improve a client’s financial situation and help them progress towards their goals Prepare recommendations and collaborate with a client on solutions to address their needs Provide full and adequate disclosure of all assumptions made in the analysis Present the financial plan & analysis and make recommendations to the client Acquire communications strategies that will help move the client toward accepting recommendations Using an understanding of how the brain works and makes decisions, deal with client objections and additional questions

PD Activities: PD Activities complement the modular content and provide practical hands-on learning experience.

- Prepare a personal financial plan for a client

- Identify planning opportunities and gaps to assist your client in achieving their financial goals

- Prepare recommendations for a client based on an action plan and address objections and concerns

- Recognize your obligation to fully understand a client’s situation and the gaps in their financial plan

- Assess a client’s tolerance and capacity for investment risk

- Discern the implications of investment risk profile and client situation for portfolio asset allocation

- Perform a proper due diligence to fully understand all attributes of a particular product in order to understand product suitability

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CR Module:

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Building Client Value - continued FP Modules:

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Gain a working knowledge of the Canadian economy Identify and explain the indicators that may signal the past, current or future phase of the economic cycle Utilize a foundational knowledge of demand and supply to trace the expected (or explain the past) impact of world events and fiscal and monetary policy on economic variables, including an individual’s individual’s investment values Create an appropriate asset allocation for a client given their investment objectives and constraints (including return expectations and willingness, capacity and need for risk) Evaluate investments that are suitable for the client Interpret the return and risk of a client’s investment portfolio Help clients make sense of their investment statements, including the impact that changing investment values may have on achieving their goals Identify and explain the income tax assessment rules for a client Explain the tax implications of how different types of income received by a client may be taxed Identify the tax deductions and credits for which a client may be eligible Identify and estimate the benefit of engaging in foundational income splitting strategies

COURSE 4

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Fine Tuning your Practice and The Value of Advice THREE MODULES Practice Development (PD)

- Fine Tuning your Financial Advisory Practice - The Value of Advice

Professional Standards & Ethics (PS)

- Code of Professional Conduct

WHAT WILL YOU LEARN? PD Modules

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Review your existing work habits and explore ones that are more effective Review your personal and business goals as well as your marketing plan Understand the importance of liability (E&O) insurance, ensure you are in compliance with minimum coverage amounts and secure appropriate coverage for your practice Learn how to manage client expectations and avoid complaints related to confusion, ambiguity or misunderstanding Take advantage of educational and mentorship opportunities to complement and enrich mandatory Continuing Education (CE) programs Explore and recognize the unique value you provide to your clients Orient your practice toward providing the highest value possible to your clients Communicate the value you provide to your clients and prospective clients Evaluate your current communications practices to understand any gaps in channels, types and frequency of communications Develop a communications strategy for your financial advisory practice

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PD Activities:

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PD Activities complement the modular content and provide practical hands-on learning experience.

- Evaluate a typical workday or week to determine how much time is spent in each of the quadrants in the Urgent-Important Matrix for Financial Advisors

- Review your business and marketing results, establishing a detailed plan to improve results

- Self-assessment of financial services industry knowledge and creation of a personal development plan for future Continuing Education courses

- Describe a courageous conversation you find challenging to initiate with a client or prospective client, include what you find challenging about it and the potential best outcome for you and your client.

Practice the conversation in role-play

- Review all versions of your value statement to evaluate the uniqueness of its message.

How well does it stand out against your competition?

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Re-write your value proposition using the ‘recipe’ included in the module ensuring it incorporates statements about your integrity, expertise and the understanding of your client’s needs Using a Communications Matrix analyze your current communications practices with your new understanding of the gaps (if any) in your communications strategy, begin to develop your plans for effective future client touchpoints

PS Module:

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Appreciate the reasons for abiding by a Code of Professional Conduct Understand the value of a Code of Professional Conduct for the Financial Advisor and the Consumer Explain how The Institute for Advanced Financial Education enforces the Code of Professional Conduct Possess knowledge of the rules and procedures for enforcement of the Code of Professional Conduct Follow the best practices for abiding by the eight principles within the Code of Professional Conduct Incorporate the principles of the Code of Professional Conduct into your financial planning/advisory practice

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