About the Financial Planning Body of Knowledge

The Financial Planning Body of Knowledge (FP-BoK)—the first of its kind internationally—builds on the  Canadian Financial Planning Definitions, Standards & Competencies to define the scope and holistic nature of financial planning.

The FP-BoK clearly distinguishes the knowledge expectations of newly certified QAFP professionals and newly certified CFP professionals in all financial planning areas.

The FP-BoK provides the knowledge underpinnings for the FP Canada Standards Council Competency Profile for CFP® Certification and the FP Canada Standards Council Competency Profile for QAFP^® Certification. It is essential to the demonstration by QAFP professionals and CFP professionals of competence in fundamental financial planning practices, financial planning areas and professional skills.

Audiences

The FP-BoK is intended to serve as a resource to multiple different groups and in many different contexts. Examples of potential uses include:

Development Process

The FP-BoK was developed by over 80 practicing CFP professionals from across Canada, along with a variety of subject-matter specialists in the various topic areas. As practitioners and experts in the technical knowledge topics, these volunteers developed the knowledge statements contained in the FP-BoK that reflect the level of knowledge required for effective financial planning practice on the part of newly certified QAFP professionals and newly certified CFP professionals.

The rigorous FP-BoK development process included input by the following key sub-groups to ensure relevance, clarity, comprehensiveness and currency:

• A Small Business Working Group with in-depth experience providing financial planning advice to small business owners reviewed relevant topic areas to help ensure the inclusion of appropriate technical knowledge.
• Educators provided feedback on the depth, breadth and clarity of the FP-BoK and its practicality for teaching purposes.
• A Professional Practice Working Group of CFP professionals and educators provided oversight and approval of the FP-BoK through extensive review of the technical knowledge statements.

FP Canada sincerely thanks the many pioneers who contributed to the development of the initial FP-BoK.

Validation of the FP-BoK

Approximately every five years, and in accordance with best practices for certification bodies, FP Canada undertakes a validation of the FP-BoK. This process helps to ensure the FP-BoK continues to be relevant to the financial planning profession, represents knowledge that Canadians require of professional financial planners and reflects current financial planning practice.

The first validation of the FP-BoK was completed in 2022 and resulted in version 2.0.0

The validation process included an analysis of comparable knowledge references in the Canadian financial sector. A Task Force made up of CFP professionals, QAFP professionals, educators and industry representatives provided input to:

• Validate technical knowledge requirements for newly certified QAFP professionals,
• Validate technical knowledge requirements for newly certified CFP professionals relative to specialists and
• Introduce or expand (where required) knowledge topics to ensure the continuing relevancy and currency of the FP-BoK to financial planning practice.

As part of the validation process, surveys were conducted over a broad segment of CFP professionals and QAFP professionals, and the survey results were reviewed and incorporated into the FP-BoK by the Task Force.

Knowledge Expectations

As CFP professionals are expected to provide financial planning advice at the highest level of complexity required of the profession, the knowledge expectations set out in the FP-BoK are broader and deeper for CFP professionals than for QAFP professionals. Specifically, newly certified CFP professionals are expected to have greater depth and breadth of knowledge in registered retirement plans, registered disability plans, taxation, insurance and estate planning and legal aspects of planning.

The complexity of a client situation influences the depth and breadth of technical knowledge required for each designation. QAFP Professionals are expected to capably provide holistic financial advice for the everyday financial planning needs across a broad population of Canadians. As CFP professionals are expected to capably provide financial planning advice at higher levels of complexity, they require knowledge that extends beyond the expectations of QAFP professionals.

The FP-BoK sets the minimum expectation for the level of knowledge required of newly certified QAFP professionals and newly certified CFP professionals, but it is not intended to limit the scope of practice of any certificant. QAFP professionals and CFP professionals may possess deeper or broader levels of knowledge based on their backgrounds and experience.

As set out in the FP Canada Standards Council® Code of Ethics, financial planning professionals must seek the counsel of qualified individuals and/or refer clients to such parties when they do not possess the appropriate knowledge or are not sufficiently competent in any particular area or scenario.

The following chart provides an overview of the areas where CFP professionals are expected to have a greater depth of knowledge, compared to QAFP professionals.

Note: Sub-topics highlighted in orange are applicable to CFP professionals only.

Version 2.0.0, Updated 20221111