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FPStandard

FALL 2017 ISSUE 16

IDEAS THOUGHTS AND TRENDS IN THE FINANCIAL PLANNING PROFESSION

P4 Financial Planning Body of Knowledge

Financial Planning Body of Knowledge Detailed Knowledge Expectations of Professional Financial Planners in Canada

P7 Profile of the Profession

P8 Celebrate Financial Planning Week in Canada

P 12 The Financial Planning Profession: Built by Its Members

FPSC.CA


BY THE NUMBERS

CHILDREN AND FINANCIAL DEPENDENCE One third of parents say their millennial children are a financial strain, reveals new research conducted by Leger on behalf of Financial Planning Standards Council (FPSC). More than 1,500 Canadians were surveyed, with results suggesting that many parents who help their children financially may be placing their own financial well-being at risk.

38%

of respondents with millennial children say their children are still financially dependant on them.

33% experience financial strain 33% expect to postpone their retirement to assist kids with post secondary costs 32% are delaying paying off debt to assist kids with post secondary costs

The study was conducted from July 31 to August 3, 2017 and included 1,527 Canadians. For more findings from the research, visit fpsc.ca/alerts-updates.

@FPSC_Canada

FPSC.Canada

FPStandard // Fall 2017

company/Financial-Planning-Standards-Council

2

FinancialPlanningStandardsCouncil

902-375 University Av. Toronto, Ontario M5G 2J5 | T.: 416.593.8587 | 1.800.305.9886 inform@fpsc.ca | fpsc.ca | Consumer Site: FinancialPlanningforCanadians.ca

FinancialPlanningStandardsCouncil @fpsc_canada

CFP ®, C ertified Financial P lanner ® and are certification trademarks owned outside the U.S. by Financial Planning Standards Board Ltd. (FPSB). Financial Planning Standards Council is the marks licensing authority for the CFP marks in Canada, through agreement with FPSB. All other ® are registered trademarks of FPSC, unless indicated. © 2017 Financial Planning Standards Council. All rights reserved.


ON MY MIND

2017 has been a year of the unexpected. From Trump taking the Oath of Office south of the border to Tom Brady leading an epic comeback for the Patriots in overtime. It’s the year when the world turned upside down and even the most sure-footed among us are struggling to keep pace with the flurry. In a world where the unexpected has become the expected, the role of the financial planner is as much about “crisis management” as it is about “financial management”. Most often a new client will seek out the services of a financial planner when they are experiencing a disruptive, unexpected event that threatens their financial health. They are looking for a saviour who can bring back stability; someone to lead them from the chaos.

The planner dealing with a client in financial crisis is now required to take a creative and adaptive approach to the problem, recognizing and discounting their own cognitive biases along the way. Just because a situation is similar to one the planner may have seen before doesn’t mean the same approach or solution will be appropriate or work this time. Communication in time of crisis is key. It’s about creating order out of disorder, ratcheting down the stress or fear, and level-setting in a way that garners trust. And of course it’s about making rational decisions. In a time of crisis, leaders must assess all possible outcomes and chart a course. Most importantly, motivating the client in crisis to remain calm, to take the first necessary step and to make the right decisions is a significant skill all in itself. Often referred to as “professional skills”, these competencies are going to become ever-more essential for the next generation of financial planners to be successful professionals. Financial planners of the not-too-distant future will not be able to rely on their technical knowledge alone to bring value to the client; they will need to understand how the human brain works, how people make decisions (both in crisis and in times of relative calm) and how to lead their clients to the right decisions. They’ll have to understand values, heuristics, emotions and disorders

that people in and out of crisis bring to the table; the stages of change and how to guide and motivate others through them; and finally, the impact of communication style in building and sustaining trust. With this in mind, FPSC is pleased to introduce the Financial Planning Body of Knowledge (FP-BoK). A first of its kind, the FP-BoK comprises 12 knowledge topics, each encompassing detailed statements of the knowledge expected of financial planners in all areas of financial planning, including the knowledge requirements of the future financial planner as they relate to human behaviour, decision making and relationships. It also offers case studies that illustrate the application of knowledge in each topic. You can read more about this groundbreaking work on page 4 of this issue of the FP Standard. Better still, visit FPSC.ca and experience it for yourself. FPSC is committed to ensuring that the financial planners of the 21st century are armed with the knowledge, skills and abilities to be relevant, in-demand professionals who will effectively help their clients navigate uncertainty and ever-increasing complexity, in a world where technology rules virtually everything. The FP-BoK is the foundation for the financial planning profession not only of today, but of the future—a profession that that can be life-changing, not only for clients, but for financial planners themselves.

Cary List CA, CPA, CFP® President and CEO, FPSC Cary leads FPSC as the premier standards-setter for the financial planning profession in Canada. He has spent the past decade working to ensure that CFP certification is recognized as the standard that Canadians can expect and rely upon from financial planners and to see financial planning recognized in law as a distinct profession.

FPStandard // Fall 2017

The competencies required of a financial planner who is faced with a client in crisis are not so different from those required of a leader in a disaster zone. Situational awareness—i.e. assembling the key facts of the circumstances, or the “discovery process”—is the foundation of a plan. Often when a person is in crisis, there is confusion and uncertainty. The financial planner must recognize this and ensure, through appropriate questioning, that the information presented is not tainted by the confusion, uncertainty or other biases that the client is currently experiencing.

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PROFESSIONAL COMPETENCY

knowledge topics

01

02

Financial Planning Profession and Financial Services Industry Regulation

Financial Analysis

06

02

04

05

Credit and Debt

Registered Retirement Plans

Government Benefit Plans

07

08

09

10

Economics

Investments

Taxation

Law

11

12

Insurance

Human Behaviour

Registered Education  and Disability Plans

DEFINING THE SCOPE OF FINANCIAL PLANNING FIRST-EVER FINANCIAL PLANNING BODY OF KNOWLEDGE AND REVALIDATED FPSC COMPETENCY PROFILE For the first time, the knowledge expected of financial planning professionals has been specifically and completely defined. A world-first developed in Canada, the Financial Planning Body of Knowledge (FP-BoK) is an unprecedented authoritative compendium of all the detailed knowledge expected of professional financial planners, including CFP professionals and FPSC Level 1® Certificants in Financial Planning. It defines the scope and holistic nature of financial planning for the benefit of the Canadian public, educators, students, industry firms and financial planners themselves.

FPStandard // Fall 2017

Together with the revalidated FPSC Competency Profile, the FP-BoK serves to further define the knowledge and competencies expected of CFP professionals and FPSC Level 1 certificants in Canada. It also explains the differences between the two, which provides better clarity for more consistent delivery of financial planning throughout the profession.

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FINANCIAL PLANNING BODY OF KNOWLEDGE: CLEARLY DELINEATING KNOWLEDGE EXPECTATIONS BETWEEN FPSC CERTIFICANTS The FP-BoK comprises 12 knowledge topics: Financial Planning Profession and Financial Services Industry Regulation, Financial Analysis, Credit and Debt, Registered Retirement Plans, Government Benefit Plans, Registered Education and Disability Plans, Economics, Investments, Taxation, Law, Insurance and

Human Behaviour. Each topic encompasses detailed statements of the knowledge expected of professional financial planners in all financial planning areas. It also includes accompanying case studies that illustrate the application of knowledge in each topic. The FP-BoK clearly distinguishes the knowledge expected of CFP professionals from that of FPSC Level 1 certificants. While both certifications draw from the same Body of Knowledge, expectations for CFP professionals are broader, given that they must provide objective financial planning at the highest level of complexity required of the profession. Specifically, CFP professionals are expected to have greater depth of knowledge in areas including registered retirement plans, registered education and disability plans, taxation, insurance, and estate planning and legal aspects. FPSC thanks the many pioneers who contributed to this initial publication. The FP-BoK was developed by experts from the financial planning profession and related fields, including over 80 practicing CFP professionals from across Canada. It has undergone a rigorous review process—including input by CFP professionals, educators and a special working group—to ensure relevance, clarity, comprehensiveness and currency. The FP-BoK can be found at fpsc.ca/bok.

REVALIDATED FPSC COMPETENCY PROFILE: INCLUDES REFRAMING OF PROFESSIONAL SKILLS The FPSC Competency Profile is based on FPSC’s comprehensive analysis of the financial planning profession. It defines the competency expectations of CFP professionals and FPSC Level 1 certificants and helps establish education, examination and continuing education requirements for each certification. FPSC also uses the Competency Profile as the basis for education program approvals. Every five years, FPSC reviews, updates and validates the  Competency Profile to ensure it remains relevant and appropriately represents the competencies Canadians should be able to expect of financial planners. Version 3.0 of the Competency Profile includes changes made for clarity, consistency and comprehensiveness across all six financial planning areas. The changes are based on research, subject-matter expert consultation and feedback resulting from a national survey of CFP professionals. The most significant changes are related to professional skills—non-technical skills fundamental to financial planning. They have been reframed to better reflect expectations in practice and to differentiate “professional skills” from “professional obligation”. The Competency Profile is available at fpsc.ca/news/publications-research/competency-profile.


FOR THIS SYMBOL

Academy of Financial Divorce Specialists

Federation des Caisses Desjardins

Radius Financial Education

Advisor Practice Management

Fidelity Investments

RBC Royal Bank

Advisor.ca

Financial Advisor Courses

ReSolve Asset Management

Advocis

Great-West Life Assurance Company

Responsible Investment Association

Age-Friendly Business

HomEquity Bank

Retireability Planning Inc.

AGF Investments Inc.

Hootsuite

Scotiabank

Assante Wealth Management

IFSE Institute

Sentry Investments Inc.

Bachrach & Associates, Inc.

ILS Learning Corporation

Skillsoft Corporation

BMO Financial Group

Independent Financial Brokers of Canada

Smarten Up Institute

Bridgehouse Asset Managers

Insight Information

STEP Canada

Business Career College

Institute for Divorce Financial Analysts

Stock Trading Academy

Canadian Association of Farm Advisors

Institute of Advanced Financial Planners

StrategyMarketing.ca

Canadian Association of Gift Planners

Invesco Canada Ltd

Sudden Money Institute

Canadian ETF Association

Investment Management Consultants Association

Sun Life Assurance Co.

Investment Planning Counsel

The Money Finder

Canadian Institute of Financial Planners

Investors Group

The Neutral Zone

Canadian Securities Institute

Ivey Business School

Vancouver Dementia Care Consulting

CDSPI Advisory Services Inc.

Knowledge Bureau

Vision Systems Corp.

CE Network Inc.

Learning Partner

WeGuideU.com

CE-Credits.ca

Lesniewski Moore Consulting Group

XTRAcredits

CI Investments

Mackenzie Investments

Yorkville Asset Management

CIBC Asset Management Inc.

Manulife

Clear Concept

MD Management

CLIFE Inc.

Mindpath Corp.

Concentra Trust

National Bank of Canada

Corporate Finance Institute Covenant Group

National Exempt Market Association

CPDonline.ca

Oliver’s Learning

Dynamic Funds

Peak Conflict Solutions

Edward Jones

PFM Capital Inc.

ERAssure - Estate Risk Protection Plan Inc.

Private Capital Markets Association of Canada

APPROVED.

Pro-Seminars Ltd.

ASSURED.

Canadian Institute of Certified Executor Advisors

ES Computer Training ETF Insight Exam Success

R3 Coaching

The Legacy Companies, LLC

ASSESSED.

For more information visit: fpsc.ca/approved-ce-credits

FPStandard // Fall 2017

LOOK

CE APPROVAL PROGRAM USE THIS LIST OF EDUCATION PROVIDERS:

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REGULATORY

FALL REGULATORY UPDATE On October 10, 2017, the Ontario Minister of Finance approved a Memorandum of Understanding (MOU) between Financial Planning Standards Council (FPSC) and the Ontario Securities Commission (OSC). The MOU supports a framework for cooperation between FPSC and the OSC that will assist in the effective delivery of each organization’s respective mandate. Under the MOU, FPSC and the OSC will cooperate in numerous areas, including: • Notifying each other about matters that are materially relevant to their respective mandates; • Sharing information regarding registration/certification, compliance and enforcement activities, where appropriate and in the public interest; • Exchanging information related to regulatory and investigatory approaches and best practices that are of mutual interest; and • Undertaking joint education or advocacy activities relating to financial planning or securities issues. Greater transparency and increased direct cooperation between FPSC and the OSC will allow each organization to act in the most timely and efficient manner, improving oversight and strengthening consumer protection. With the busy fall and winter months firmly upon us, there are three additional areas of regulatory change to watch closely: titling rules for “financial planners” in Ontario, new requirements from the Canadian Securities Administrators (CSA) aimed at strengthening the client-registrant relationship and the possible discontinuation of embedded commissions.

FPStandard // Fall 2017

TITLING RULES IN ONTARIO

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In Ontario, the government is currently working to introduce regulatory changes following from the March release of the Final Report of the Ontario Expert Committee to Consider Financial Advisory and Financial Planning Policy Alternatives. In response to the report, the government included express commitments in the 2017 Budget to, over the year, legislate credential-based requirements for all those who use the title or hold themselves out as “financial planners”, and to further restrict the use of other related advisory titles that confuse and mislead consumers.

NEW REQUIREMENTS FROM THE CANADIAN SECURITIES ADMINISTRATORS Meanwhile, across Canada, securities regulators are moving ahead with the development of new regulatory requirements for industry participants. In May, CSA members provided an update to their work on Consultation Paper 33-404. Published in April 2016, the paper includes proposals for a series of “targeted” regulatory reforms, intended to enhance the obligations of registrants toward their clients, and a regulatory Best Interest Standard, intended to serve as an overarching guiding principle for the industry. In the May update, the CSA outlined its plan to publish specific proposed amendments and guidance in 2017–18 in several of the areas explored in the consultation paper, including rules around management and disclosure of conflicts of interest; suitability requirements; know-your-client requirements; know-your-product requirements; relationship disclosure requirements; and rules around the use of titles and designations. On the topic of a regulatory Best Interest Standard, CSA members disagreed on the efficacy of pursuing such a standard beyond the proposed targeted reforms, with some provinces strongly in favour and others unconvinced of the benefits of imposing such a duty. While most jurisdictions have now firmly halted any further consideration, Ontario and New Brunswick remain committed to advancement of a Best Interest Standard.

EMBEDDED COMMISSIONS Finally, CSA members will be moving forward this winter with their deliberations on potentially discontinuing embedded commissions. This follows from the release of Consultation Paper 81-408 in January. CSA members are currently reviewing stakeholder feedback to determine what policy response, if any, is needed to address their concerns. FPSC looks forward to working collaboratively with governments, regulators and other stakeholders in the coming months toward finalizing these changes in the interests of consumers. To read FPSC’s regulatory submissions, visit fpsc.ca/fpsc-comments.


PROFILE OF THE PROFESSION

PROFILE OF THE PROFESSION CERTIFIED FINANCIAL PLANNER® professionals are members of an international community over 170,000 strong who are committed to upholding the financial planning profession’s most rigorous global standards and to putting clients’ interest ahead of all others. The following information was obtained from the renewals that Canadian CFP professionals and FPSC Level 1 Certificants in Financial Planning complete each year. The information represents reported statistics as of August 2017.

CFP PROFESSIONALS DEMOGRAPHICS

SPOKEN LANGUAGE

LOCATION ONTARIO

52%

BRITISH COLUMBIA

19%

MALE

FEMALE

ALBERTA

14%

69%

31%

PRAIRIES

9%

ATLANTIC CANADA

5%

OTHERS

1%

AGE

TOP 10 EMPLOYERS

OTHER THAN ENGLISH

FRENCH

5%

INVESTORS GROUP

1

MANDARIN

4%

RBC

2

CANTONESE

4%

CIBC

3

HINDI

2%

TD

4

ITALIAN

2%

SCOTIA

5

BMO

6

SUN LIFE

7

< 36

11%

36-45

23%

46-55

34%

< $100K / YEAR

29%

CIM

12%

MANULIFE

8

56-65

25%

$100K - $199K / YEAR

38%

CLU

11%

LONDON LIFE

9

> $200K / YEAR

33%

CPA

8%

7%

66+

ANNUAL INCOME

TOP 3 DESIGNATIONS HELD

ASSANTE FINANCIAL

10

FPSC LEVEL 1 CERTIFICANTS

MALE

FEMALE

64%

36% AGE

< 36

49%

36-45

30%

46-55

15%

56-65

6%

66+

SPOKEN LANGUAGE

LOCATION

<1%

TOP 10 EMPLOYERS

OTHER THAN ENGLISH

INVESTORS GROUP

1

6%

TD

2

FRENCH

5%

CIBC

3

6%

CANTONESE

5%

RBC

4

ATLANTIC CANADA

4%

HINDI

4%

SCOTIA

5

OTHERS

2%

PUNJABI

3%

BMO

6

LONDON LIFE

7

SUN LIFE

8

NATIONAL BANK

9

EDWARD JONES

10

ONTARIO

51%

BRITISH COLUMBIA

20%

MANDARIN

ALBERTA

17%

PRAIRIES

FPStandard // Fall 2017

DEMOGRAPHICS

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FINANCIAL PLANNING WEEK

NOVEMBER 19–25, 2017

CELEBRATE FINANCIAL PLANNING WEEK IN CANADA Created by FPSC and now in its ninth year, Financial Planning Week has become an integral part of Financial Literacy Month in Canada. This important week is part of an as ongoing effort to promote financial planning and its benefits to Canadians. Financial Planning Week has grown steadily since its inception in 2009, with the Institut québécois de planification financière (IQPF) joining forces to create a Canada-wide initiative, and the week now integrated with significant awareness activities, educational events, research studies and other initiatives throughout the country each November.

VISION 2020: THE HEART OF FINANCIAL PLANNING WEEK Financial Planning Week was launched with a vision that, by the year 2020, Canada will be shaped by a nation of people, organizations and a regulatory environment that: • Values financial planning • Shares and assumes responsibility to ensure the financial planning needs of Canadians are well served • Has a viable financial planning profession that ensures that those who need professional advice have broad access to competent, ethical financial planners

FPStandard // Fall 2017

FPW 2017 AT A GLANCE

8

SUN 19

MON 20

TUES 21

WED 22

THURS 23

FRI 24

SAT 25

SOCIAL MEDIA

SOCIAL MEDIA

SOCIAL MEDIA

SOCIAL MEDIA

SOCIAL MEDIA

SOCIAL MEDIA

SOCIAL MEDIA

INFLUENCER ENGAGEMENT

INFLUENCER ENGAGEMENT

INFLUENCER ENGAGEMENT

INFLUENCER ENGAGEMENT

INFLUENCER ENGAGEMENT

INFLUENCER ENGAGEMENT

INFLUENCER ENGAGEMENT

FACEBOOK ADS

FACEBOOK  ADS

FACEBOOK  ADS

FACEBOOK  ADS

FACEBOOK  ADS

FACEBOOK  ADS

FACEBOOK  ADS

MEDIA APPEARANCES

MEDIA APPEARANCES

MEDIA APPEARANCES

MEDIA APPEARANCES

MEDIA APPEARANCES

G&M ONLINE ADS

G&M ONLINE ADS

G&M ONLINE ADS

G&M ONLINE ADS

G&M ONLINE ADS

G&M SPECIAL SECTION PUBLISHED

FP FOUNDATION EXCLUSIVE LUNCHEON – TORONTO

ETHICS BREAKFAST SESSION – TORONTO

ETHICS BREAKFAST SESSION – VANCOUVER

MEDIA RELEASE

CELEBRATION OF THE PROFESSION RECEPTION & DINNER – TORONTO

CFP PROFESSIONAL SYMPOSIUM – TORONTO

CFP PROFESSIONAL SYMPOSIUM – VANCOUVER

G&M ONLINE ADS


FINANCIAL PLANNING WEEK

FPSC-HOSTED FINANCIAL PLANNING WEEK EVENTS In addition to consumer education and outreach, FPSC fosters a community of professional financial planners. Over a thousand CFP professionals and members of the financial services industry are invited to come together in a unique learning environment that promotes networking and professional skills development. If you haven’t yet reserved your seat, check availability at FinancialPlanningWeek.ca.

CELEBRATION OF THE PROFESSION RECEPTION AND DINNER November 21 | Toronto Reference Library | $99 per person | $792 for table of 8 This must-attend event gathers over 200 esteemed leaders from within the financial services industry, plus regulators and representatives from all levels of government, to celebrate outstanding contributors to the financial planning profession. Ontario’s Minister of Finance, the Honourable Charles Sousa, will deliver a keynote address. This year’s Dinner will be emceed by comedienne/speaker Jen Grant, who can be heard on CBC Radio’s “The Debaters” and seen in her own special on The Comedy Network.

Ontario’s Minister of Finance, the Honourable Charles Sousa

ETHICS BREAKFAST SESSION: DEALING WITH CLIENTS WITH DIMINISHING CAPACITY November 22 | Arcadian Court, Toronto // November 24 | Hyatt Regency, Vancouver CE credits: 1.5 | $119 per person | $1,190 for table of 10

Damienne Lebrun-Reid, LL.B., Managing Director, Standards, FPSC

Bianca La Neve, LL.B., Partner, WeirFoulds LLP

Dr. Carole Cohen, Geriatric Psychiatrist, Sunnybrook Health Sciences Centre

Colin Ritchie, CFP, LL.B., Lawyer & Financial Planner

+$*(/

FPStandard // Fall 2017

This thought-provoking panel discussion will explore the ethical decisions and challenges of this critical issue. The topics will cover recognizing the signs of diminishing capacity and the impact of dementia on the ability to make financial planning decisions; confidentiality concerns around caregivers; and dealing with powers of attorney. The panel will include local legal experts and CFP professionals in Toronto and Vancouver.

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CFP PROFESSIONAL SYMPOSIUM: 21ST CENTURY SKILLS FOR THE 21ST CENTURY PLANNER November 22 | Arcadian Court, Toronto // November 24 | Hyatt Regency, Vancouver CE credits: 4 | $329 per person | $3,140 for table of 10 Now more than ever, financial planners need to hone the skills that technology can’t replace: managing relationships, demonstrating empathy, understanding how and why clients make the decisions they do and guiding them to the right choices.

KEYNOTE ADDRESS: THE FUTURE OF ARTIFICIAL INTELLIGENCE A captivating conversation is taking place about the future of artificial intelligence and what it will/should mean for humanity. There are fascinating controversies where the world’s leading experts disagree, such as AI’s future impact on the job market, if/when human-level AI will be developed, whether this will lead to an intelligence explosion and whether this is something we should welcome or fear. Explore the current and future state of AI and how its evolution may impact the future of professional financial advice.

Ajay Agrawal

BETWEEN THE PLAN AND EXECUTION: THE PSYCHOLOGY OF CHOICE, DECISION-MAKING AND ACTION IN FINANCIAL PLANNING One of the greatest obstacles to good financial planning is that it involves real people rather than the hypothetical rational agents of neoclassical economics and much of our training in finance and related fields. Working with real people is messy, but also reassuringly predictable in its messiness. The best financial planners help their clients overcome that messiness. Explore how you can use psychology to understand your clients and help them steer a course through perceptual biases and invisible planning handicaps to a brighter future.

Mark Weber

CREATING A NEW MODEL FOR YOUR BUSINESSCAROLYN MCCLANAHAN Many financial planning professionals are reviewing their current business models to evolve with the changing needs of society. A former physician, Carolyn will discuss her journey from medicine into financial planning, provide unique insight into the health implications of an aging society and share how she successfully transitioned her firm into a retainer model. Carolyn McClanahan

AUGMENTING TECHNOLOGY INTO YOUR PRACTICE Technology is transforming financial services delivery and consumer demand. Discover the implications of technological advances on the planning practice and how financial planners can use technology to enhance their client engagements.

FPStandard // Fall 2017

Nikolas Badminton

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MAKE THE MOST OF FINANCIAL PLANNING WEEK WITH THESE CONSUMER OUTREACH TOOLS Financial Planning Week is the ideal time to connect with your clients and prospects. You can encourage them to take the next step toward their financial health by engaging in financial planning with a qualified professional.

TOOLS TO SHARE • Consumer research: FPSC is releasing new consumerfocused research leading up to Financial Planning Week and in the months that follow. Share it (available at FinancialPlanningForCanadians.ca/research) on social media or use it as a conversation starter. • Videos & articles: FinancialPlanningForCanadians.ca contains over 100 articles, videos and infographics to help Canadians use financial planning through various life stages. Include this link or any of the site’s resources in consumer-focused communications.


FINANCIAL PLANNING WEEK • Social media: We post about consumer resources on Twitter, Facebook, LinkedIn, Google+, YouTube and Instagram. Follow the accounts listed on page 2 to share content with clients.

THANK YOU TO OUR 2017 SPONSORS

• Consumer newsletter: Here’s the Plan™, our free consumer newsletter, is an easy way to help your clients learn about financial planning. Clients can subscribe at eepurl.com/PG0i9.

Many participate in Financial Planning Week, but leaders sponsor it.

• Industry Guide to Financial Planning Week: A guide to the FPSC resources that will support your own efforts in promoting this important week. Find it at fpsc.ca/financial-planning-week-2017/resourcesindustry-professionals.

FPSC thanks all of the organizations who have generously supported Financial Planning Week.

OTHER TIPS • Case studies & testimonials: Share case studies or testimonials of positive planning action to illustrate the benefits of scheduling an initial meeting with a qualified financial planner, and of revising existing financial plans. • Celebrate your CFP professionals: Circulate the names and specialty areas of your new CFP professionals to recognize them and encourage clients to connect. • Take the Next Step logo: Include the bilingual Financial Planning Week logo and tagline on all of your materials and communications. Download the logo in various formats at fpsc.ca/fpw-logo.

+$*(/

FINANCIAL PLANNING WEEK AWARENESS CAMPAIGN FPSC’s annual Financial Planning Week consumer awareness campaign reaches millions of Canadians. Watch for these 2017 highlights: Media outreach: During Financial Planning Week and all through the year, FPSC works with the media to promote the importance of getting qualified financial planning help. This year’s media outreach will include appearances by FPSC’s Consumer Advocate Kelley Keehn, who will share the results of several new research studies that will be of interest to Canadian consumers.

The Globe and Mail Financial Planning special feature: This special section in the newspaper is read by 1.4 million Canadians, and will live on for three months online.

Social media advertising: Consumer-focused messages will be viewed more than one million times through Facebook.

BASIC PPI ELEMENTS

PPI Graphic Standards Manual

The PPI Valet Logo

Section 1 PPI Brand Standards

The PPI Valet logo has been typeset using two fonts belonging to the PPI corporate identity system and is designed to merge seamlessly into the WealthBar brand. The design of the word PPI looks similar to, yet distinct from, the official PPI corporate word mark. The word Valet is set in a way that differentiates it aesthetically from other PPI brand offerings and value added services. The preferred colour for the wordmark is PPI Charcoal. The mark can also be reversed out, in white, to provide contrast, maintaining legibility, on darker coloured backgrounds.

Valet

Powered by WealthBar

Valet

Powered by WealthBar

FPStandard // Fall 2017

PPI Charcoal

FOUR COLOUR PROCESS

023C 002M 000Y 077K 432

RGB COLOUR

069R 085G 096B

WealthBar Oceanic Teal FOUR COLOUR PROCESS

92C 0M 53Y 0K

Valet

Powered by WealthBar

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VOLUNTEER RECOGNITION

FPSC volunteers steer the continuous development and advancement of the financial planning profession. They help shape the evolution of the profession as they THE FINANCIAL PLANNING PROFESSION: give back and gain unique BUILT BY ITS MEMBERS networking, learning The financial planning profession is designed, enforced and continually and career-building enhanced by the members of the profession. FPSC certificants volunteer opportunities. their time to ensure that all those who

FPStandard // Fall 2017

obtain CFP certification and FPSC Level 1 certification not only have extensive educational backgrounds and professional training, but that they are held to the highest standard worthy of the profession—a standard that Canadians can trust.

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Throughout the year, more than 300 CFP professionals and FPSC Level 1 certificants collectively contribute thousands of hours to FPSC activities, generously volunteering their expertise and passion to a wide range of initiatives that enhance the financial planning profession. Volunteers serve on Board Committees and Panels, develop and score exams and share experiences and advice with potential FPSC certificants. They also speak with local government officials and the media to ensure that financial planning is well represented.

Volunteer engagement, an essential element in the evolution of any profession, is also a key strategic initiative for FPSC. FPSC recently completed a strategic review of its volunteer program to streamline and optimize volunteer recruitment, onboarding, retention, recognition and feedback processes. This initiative helps ensure the continuing development of an efficient, challenging and rewarding volunteer program. FPSC accomplishes its work hand in hand with the professionals who have the necessary expertise and passion. We are pleased to feature the names of all of our current volunteers at fpsc.ca/volunteers. We thank each of them for their significant contributions and ongoing commitment to excellence in the financial planning profession.


FINANCIAL PLANNING FOUNDATION

NEW BENEFITS FOR FP FOUNDATION DONORS BY JOAN YUDELSON, MBA, CFP EXECUTIVE DIRECTOR, FP FOUNDATION

The Financial Planning Foundation (FP Foundation) was founded by FPSC and Institut québécois de planification financière (IQPF) to meet the need for precisely this type of research. Created to help improve the lives of Canadians through better financial planning, the FP Foundation funds research that examines best practices in financial planning decision-making, investigates the impact of human behaviour on effective financial planning, and explores the benefits of financial planning on society as a whole. This crucial research is made possible by the generosity of many FP Foundation donors.

As the demand for current research continues to grow, donors will play an ever-greater role in supporting the vital studies that help planners provide the best possible service to their clients—ultimately helping them achieve financial well-being. What role will you play? There are a number of new, unique benefits to supporting the FP Foundation as an individual or corporate donor. Explore FPfoundation.ca to learn more.

NEW BENEFITS FOR FOUNDERS CLUB MEMBERS The FP Foundation Founders Club is a premium club for those who are passionate about supporting the research that is vital to keeping financial planners ahead of the curve. The benefits of this exclusive club have recently been updated. Join the Founders Club today to receive these exclusive benefits: MEMBER TYPES

MEMBER BENEFITS

Gold

Platinum

Diamond

$2,500 over 5 years (min. $500/year)

$10,000 over 5 years (min. $2,000/year)

$15,000 over 5 years (min. $3,000/year)

YOUR NAME AND MEMBERSHIP STATUS WILL BE LISTED ON THE FP FOUNDATION WEBSITE.

X

X

X

YOU WILL RECEIVE AN EXCLUSIVE FOUNDERS CLUB LAPEL PIN AND MEMBERSHIP CARD.

X

Double Diamond

$20,000 over 10 years (min. $2,000/year)

X

X

X

X

X

X

X

YOU WILL BE INVITED AS A VIP GUEST TO THE ANNUAL FPSC CELEBRATION OF THE PROFESSION DINNER DURING FINANCIAL PLANNING WEEK.

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YOU WILL BE INVITED ANNUALLY TO AN EXCLUSIVE FP FOUNDATION LUNCHEON WHERE FOUNDATION RESEARCH PLANS AND FINDINGS WILL BE PRESENTED.

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YOU WILL RECEIVE AN ONLINE BADGE THAT YOU CAN USE FOR YOUR ONLINE PROFILE AND EMAIL SIGNATURE.

YOU WILL RECEIVE A FOUNDERS CLUB COMMEMORATIVE PLAQUE.

RAISE YOUR ORGANIZATION’S PROFILE AS A CORPORATE DONOR As a corporate donor, your firm supports critical financial planning research while raising the profile of your organization as a philanthropic member of the financial planning community. Commitment options are now available for institutional donors or non-profit organizations. A wide range of benefits includes the addition of your organizational logo to the FP Foundation website, opportunities to sit on the FP Foundation Research Committee and to provide input about future research, and VIP invitations to FP Foundation and FPSC events.

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assess, articulate and ultimately improve their degree of financial wellness. • Understanding the Importance of Risk for Financial Planning: Explores which sources of risk should be addressed in a financial plan, how these should be addressed and the degree to which individuals can improve financial outcomes by adjusting factors they can control. • Barriers to Financial Planning: Will uncover the behavioural factors that prevent Canadians from engaging in financial planning, and test relevant behavioural solutions to the barriers identified.

YOUR DONATIONS IN ACTION: CURRENT RESEARCH

• Ten research proposals have been submitted for presentation at the Global Academic Research Colloquium in Financial Planning and Related Disciplines.

• The Financial Wellness Study, undertaken in partnership with CPA Canada: Aims to help Canadians

Learn more about the innovative research being funded at FPfoundation.ca.

FPStandard // Fall 2017

As client situations become increasingly challenging and complex, more is at stake than ever before―and the role of the financial planner is more important than ever. Today’s financial planners must be armed with practical techniques that they can implement to effect positive change in their practices. They also need to be able to test old assumptions to be sure they are still valid. That requires the insights of solid, credible research.

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ENFORCEMENT

REPORTS ON FPSC DISCIPLINARY ACTIONS

• Breaching Rules 101 and 601 of the CFPTM Code of Ethics and Rules 1 and 2 of the Standards of Professional Responsibility for CFP® Professionals and FPSC® Registered Candidates.

Where CFP professionals have been found by a Hearing Panel to have breached the standards for the profession as established by FPSC, the Hearing Panel may impose disciplinary sanctions ranging from a letter of admonishment to permanent revocation of certification. FPSC makes all Hearing Panel decisions public, in part, by publishing a report at fpsc.ca/disciplinary-reports.

The Hearing Panel accepted the parties’ joint submissions with respect to Penalty and ordered that:

KARAS, DAVID H. (BARRIE, ON) In May 2017, a Hearing Panel considered allegations against Mr. Karas. Mr. Karas was certified as a CFP professional from 1996 to 2015. Mr. Karas’ certification with FPSC lapsed in April 2015, due to non-renewal. In June 2015, Mr. Karas’ mutual fund licence was permanently suspended. FPSC alleged that the permanent prohibition on Mr. Karas’ authority to conduct securities-related business in any capacity triggered a Presumptive Bar to continued certification with FPSC under the FPSC® Fitness Standards. Mr. Karas challenged FPSC’s ability to rely on the MFDA’s decision. On May 31, 2017, the FPSC Hearing Panel ordered a permanent ban on Mr. Karas seeking renewal or reinstatement of CFP certification. On July 25, 2017, the Panel ordered that Mr. Karas pay costs in the amount of $5,000 to FPSC by August 24, 2017. The Panel noted Mr. Karas prolonged the hearing process and contributed to increased costs. As at September 12, 2017, Mr. Karas has not paid the costs ordered.

WELSH, DONALD CAMERON (BRAMPTON, ON) In June 2017, a Hearing Panel accepted a Settlement Agreement between FPSC and Mr. Welsh. Mr. Welsh was certified as a CFP professional in 1996. In September 2014, Mr. Welsh entered a settlement agreement with a financial services regulator and admitted to engaging in misconduct. Mr. Welsh was fined by the financial services regulator in December 2014.

FPStandard // Fall 2017

In executing the Settlement Agreement with FPSC, Mr. Welsh admitted that he engaged in professional misconduct by:

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• Amending six client forms to reflect higher risk tolerances and applying his clients’ initials without their knowledge or consent; • Failing to act with integrity and engaging in conduct involving dishonesty that reflects adversely on his integrity or fitness as a CFP professional; and

• Mr. Welsh’s right to use the CFP certification marks be suspended for a period of six months commencing July 17, 2017 and ending January 17, 2018; • Prior to December 31, 2017, in addition to completing the 25 hours of Continuing Education activities required of every CFP professional, Mr. Welsh shall complete an additional: •

One hour of FPSC-Approved CE in the category of Professional Responsibility; and

Three hours of FPSC-Approved CE in the categories of Financial Planning and/or Practice Management; and

• Mr. Welsh pay costs to FPSC in the amount of $3,000, on or before August 17, 2017. Mr. Welsh has paid the costs ordered.

WARREN, RODNEY M. (LANGLEY, BC) In July 2017, a Hearing Panel accepted a Settlement Agreement between FPSC and Mr. Warren. Mr. Warren was certified as a CFP professional in 1999 and consistently renewed his CFP certification until November 2, 2016, when he voluntarily resigned his certification. In October 2016, Mr. Warren was the subject of a decision by a financial services regulator and an Order suspending his financial services licence for 90 days and imposing a fine of $100,000. The 90-day suspension of his financial services licence triggered a Presumptive Bar to Mr. Warren’s continued certification with FPSC under the FPSC® Fitness Standards. In executing the Settlement Agreement with FPSC, Mr. Warren accepted the Presumptive Bar to his continued certification with FPSC and agreed not to apply to FPSC for recertification. Having found that Mr. Warren engaged in conduct that reflects adversely on his fitness as a CFP professional, the Panel accepted the joint submissions with respect to Penalty and issued the following Order: • Mr. Warren will not apply to FPSC for renewal of his CFP certification or for recertification; and • Mr. Warren will not use the CFP marks in representations of himself, including on business cards, in social media, on letterhead or on signage. Mr. Warren will not hold himself out to clients or the public as a CFP professional or certificant of FPSC. FPSC did not seek costs and none were awarded.


Nov 19–25

9th Annual Financial Planning Week in Canada, an integral part of Financial Literacy Month

Nov 19–25

Join the conversation with the hashtags #FinancialPlanningWeek2017 and #FindYourPlanner. Ask your followers to share stories of how they, or their clients, took the next step on the path to financial well-being

Nov 20

Financial Planning Special Feature in The Globe and Mail (and online for three months)

Nov 21

Celebration of the Profession Reception and Dinner (5:45 to 9:30 p.m. at Toronto Reference Library)

Nov 22

Ethics Breakfast Session: Dealing with Clients with Diminishing Capacity (7:45 to 9:30 a.m. at Arcadian Court, Toronto)

Nov 22

CFP Professional Symposium: 21st Century Skills for the 21st Century Planner (10:00 a.m. to 4:00 p.m. at Arcadian Court, Toronto)

Nov 24

• Mr. Brinson and Mr. Gentile’s CFP certification and entitlement to use the CFP certification marks be suspended for a period of four months commencing August 1, 2017, and ending December 1, 2017;

Ethics Breakfast Session: Dealing with Clients with Diminishing Capacity (7:45 to 9:30 a.m. at Hyatt Regency Vancouver)

Nov 24

• Prior to December 1, 2017, in addition to completing the 25 hours of Continuing Education activities required of every CFP professional, Mr. Brinson and Mr. Gentile shall each complete an additional:

CFP Professional Symposium: 21st Century Skills for the 21st Century Planner (10:00 a.m. to 4:00 p.m. at Hyatt Regency Vancouver)

Dec 1

CFP examination and FPSC Level 1 examination take place in communities across Canada

Dec 11–15

Exam scoring workshops with CFP professional volunteers in Toronto

Dec 15–19

Item writing workshops with CFP professional volunteers in Banff

BRINSON, R. BRUCE AND GENTILE, GABRIELE (HALIFAX, NS) In July 2017, a Hearing Panel accepted a Joint Settlement Agreement between FPSC and Mr. Brinson and Mr. Gentile. Mr. Brinson and Mr. Gentile were each certified by FPSC as CFP professionals in 1996. Mr. Brinson and Mr. Gentile were each found by a financial services regulator to have engaged in misconduct and were each ordered to pay a fine. In executing the Settlement Agreement with FPSC, Mr. Brinson and Mr. Gentile each admitted that they engaged in professional misconduct by: • Failing to act on information and/or being willfully blind, and thereby failing to prevent harm to clients; • Allowing an advisor working at the branch to engage in fraudulent conduct; • Failing to act with integrity and professionalism; and • Failing to report an investigation into their conduct by a financial services regulator and a disciplinary finding to FPSC in a timely manner. The Hearing Panel accepted the Settlement Agreement. Following a finding that Mr. Brinson and Mr. Gentile each breached Principle 1 and 6 and Rules 101, 601, 605 and 606 of the FPSC® Code of Ethics and Rule 25 of the Standards of Professional Responsibility, the Panel accepted the joint submissions with respect to penalty and ordered that:

• One hour of FPSC-Approved CE in the category of Professional Responsibility, and • Ten hours of FPSC-Approved CE in the categories of Financial Planning and/or Practice Management; and • Mr. Brinson and Mr. Gentile shall each pay costs to FPSC of $1,000 on or before December 1, 2017. Mr. Brinson and Mr. Gentile have completed the additional CE requirements set out above.

FPStandard // Fall 2017

WHAT’S HAPPENING AT FPSC

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Become a Certified Necessity.

®

Helping people plan for their financial future isn't just a way to make a living. It’s a way to make a difference. When you become a Certified Financial Planner® professional, you have the opportunity to give clients peace of mind. Research shows that Canadians who work with a CFP® professional feel their financial goals and retirement plans are more on track, their ability to save has improved, and they’re more confident they can handle the inevitable bumps in life.

Learn how to earn the CFP designation. It’s the industry standard in financial planning—don’t settle for less. To learn more about CFP certification, visit beafinancialplanner.ca.

CFP®, Certified Financial Planner® and are certification trademarks owned outside the U.S. by Financial Planning Standards Board Ltd. (FPSB). Financial Planning Standards Council is the marks licensing authority for the CFP marks in Canada, through agreement with FPSB. All other ® are registered trademarks of FPSC, unless indicated. ©2017 Financial Planning Standards Council. All rights reserved.

FP Standard Fall 2017  

The latest ideas, thoughts and trends in the financial planning profession.