Consultations Open on Two New Rules of Conduct and Changes to the Practice Standards
New Rules of Conduct
The FP Canada Standards Council™ Standards Panel (the Standards Panel) has opened consultations on two new Rules of Conduct for Certified Financial Planner® professionals and Qualified Associate Financial Planner™ professionals.
The first proposed rule would prohibit, except in limited instances, a CFP® professional or QAFP® professional from accepting or acting as an estate trustee, executor, or as a power of attorney for property, and/or knowingly be named as a beneficiary
for a client while continuing to provide financial planning advice or services to that client.
The second proposed rule would require CFP professionals and QAFP professionals to take reasonable steps to obtain the name and contact information of a Trusted Contact Person (TCP) for their client, as well as the client’s consent for the planner
to contact the TCP to confirm or make inquiries about any of the following:
- Concerns about possible financial exploitation of the client;
- Concerns about the client's mental capacity as it relates to the ability of the client to make decisions involving financial matters;
- The name and contact information of a legal representative of the client, if any; and
- If the client cannot be reached, the client's current contact information.
The request for consultation for the new Rules of Conduct has been communicated to CFP professionals, QAFP professionals and industry stakeholders by email, and will remain open until December 5, 2023.
Updated and New Financial Planning Practice Standards
The Standards Panel is also requesting input on the draft revised Practice Standards.
The Practice Standards establish the level of practice expected of CFP professionals and QAFP professionals who are engaged in delivering financial planning services to clients and outline the process that must be followed in any client engagement where
financial planning services are being offered.
The Practice Standards subcommittee, struck by the Standards Panel, has updated the Practice Standards for currency and clarity, including additional examples and guidance, to ensure they remain clear, helpful and relevant to practice.
The working group sought and obtained initial input in May and June 2023 and while most of the 900 respondents felt the current Practice Standards were relevant and easily understood, feedback suggested they would benefit from guidance and clarification
in some areas. In addition, the Standards Panel determined it was appropriate to add a new Practice Standard: “Monitor and Review.”
The proposed “Monitor and Review” Practice Standard serves to remind CFP professionals and QAFP professionals that if the financial planning engagement includes ongoing monitoring, reviews should be held on a regular basis and any revised
assumptions and/or recommendations resulting from these reviews should be documented and incorporated in an updated financial plan.
The request for consultation for the new Rules of Conduct and revised Practice Standards has been communicated to CFP professionals, QAFP professionals and industry stakeholders by email, and will remain open until December 5, 2023.
If you are a CFP professional or QAFP professional and unable to access the survey, please send an email to firstname.lastname@example.org and they will share the proposed new Rules of Conduct and revised Practice Standards in an alternate format.