Financial Planning Profession

KNOWLEDGE EXPECTED OF: QAFP^® Professionals

Highest Knowledge Level: Understanding

Knowledge Levels and Associated Verbs

Awareness The state of being aware that something exists / to have familiarity with a particular activity or subject		Understanding To comprehend the general relationship of particulars / to have an expertise with how something works	Application Ability to put information to use / to use knowledge for relevant, practical purposes					Evaluation To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define To state exactly the meaning of	Identify To be aware of / to recognize and correctly name / to locate an appropriate resource	Explain To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it	Determine To ascertain / to come to a decision, such as by investigation or reasoning	Compare To note the similarities and differences between two or more things	Estimate To determine an approximate value for	Calculate To find the value using mathematics	Convert To change from one form or purpose to another	Evaluate To reach a conclusion or make a through careful study	Interpret To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

Explain key trends impacting the financial planning profession, such as:
- Definition of family
- Definition of retirement
- Aging population
- Longevity
- Move from defined benefit to defined contribution pension plans
- Savings rates
- Debt levels
- Financial services industry regulation
- Advent of Fintech (Financial Technology)
Identify the oversight organizations for the financial planning profession in Canada.
- FP Canada™
- Institut québécois de planification financière (IQPF)
Explain the role of FP Canada¹and IQPF.^{2, 3}

Explain the purpose of personal financial planning.

Define financial planning, financial planner and financial plan as outlined in the Canadian Financial Planning Definitions, Standards & Competencies.⁴

Explain the financial planning practice expectations of QAFP professionals and CFP professionals, as outlined in the FP Canada Standards Council Standards of Professional Responsibility^{5, 6}, including:
- Standards Council Code of Ethics
- Standards Council Rules of Conduct
- FP Canada Standards Council Fitness Standards
- FP Canada Standards Council Financial Planning Practice Standards

Define a fiduciary.

Identify factors that can influence whether a financial service representative may have a fiduciary relationship with a client,⁷^† such as:
- Vulnerability
- Trust
- Reliance
- Discretion

Explain the Competency Framework for QAFP professionals, CFP professionals and F. Pl. designation holders, as outlined in the Canadian Financial Planning Definitions, Standards & Competencies

Explain the purpose of the FP Canada/IQPF Projection Assumption Guidelines.⁸

Explain the financial planning assumptions as outlined in the unified set of FP Canada/IQPF Projection Assumption Guidelines.⁹

Identify FP Canada’s model financial plan structure, which reflects the integrated nature of financial planning.

Explain the integrated nature of financial planning.

Identify that a complaints process¹⁰ exists for potential breaches of FP Canada Standards Council Standards of Professional Responsibility .

Identify that financial planners are regulated in Quebec where no individual may use the title of financial planner or purport to offer financial planning services without holding the appropriate certificate issued by the Autorité des marchés financiers (AMF).

† Refer to Section 185.

REFERENCES

¹ https://fpcanada.ca/about-fp-canada

² https://www.iqpf.org/en/about-the-iqpf

³ https://www.iqpf.org/en/about-the-iqpf/vision-mission-values

⁴ https://fpcanada.ca/docs/default-source/standards/definitions_standards_2020_edition_eng_web.pdf

⁵ http://www.fpcanada.ca/canadian-public/standards-and-enforcement

⁶ https://fpcanada.ca/docs/default-source/standards/standards-of-professional-responsibility.pdf

⁷ http://canlii.ca/t/fvf58

⁸ https://fpcanada.ca/docs/default-source/standards/2023-pag---english.pdf

⁹ https://fpcanada.ca/docs/default-source/standards/2023-pag---english.pdf

¹⁰ https://fpcanada.ca/canadian-public/standards-and-enforcement

KNOWLEDGE EXPECTED OF: CFP^® Professionals

Highest Knowledge Level: Understanding

Knowledge Levels and Associated Verbs

Awareness The state of being aware that something exists / to have familiarity with a particular activity or subject		Understanding To comprehend the general relationship of particulars / to have an expertise with how something works	Application Ability to put information to use / to use knowledge for relevant, practical purposes					Evaluation To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define To state exactly the meaning of	Identify To be aware of / to recognize and correctly name / to locate an appropriate resource	Explain To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it	Determine To ascertain / to come to a decision, such as by investigation or reasoning	Compare To note the similarities and differences between two or more things	Estimate To determine an approximate value for	Calculate To find the value using mathematics	Convert To change from one form or purpose to another	Evaluate To reach a conclusion or make a through careful study	Interpret To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

Explain key trends impacting the financial planning profession, such as:
- Definition of family
- Definition of retirement
- Aging population
- Longevity
- Move from defined benefit to defined contribution pension plans
- Savings rates
- Debt levels
- Financial services industry regulation
- Advent of Fintech (Financial Technology)
Identify the oversight organizations for the financial planning profession in Canada.
- FP Canada™
- Institut québécois de planification financière (IQPF)
Explain the role of FP Canada¹ and IQPF.^2,3
Explain the purpose of personal financial planning.
Define financial planning, financial planner and financial plan as outlined in the Canadian Financial Planning Definitions, Standards & Competencies.⁴

Explain the financial planning practice expectations of QAFP professionals and CFP professionals, as outlined in the FP Canada Standards Council Standards of Professional Responsibility,^5,6 including:
- Standards Council Code of Ethics
- Standards Council Rules of Conduct
- FP Canada Standards Council Fitness Standards
- FP Canada Standards Council Financial Planning Practice Standards

Define a fiduciary.

Identify factors that can influence whether a financial service representative may have a fiduciary relationship with a client,⁷^† such as:
- Vulnerability
- Trust
- Reliance
- Discretion

Explain the Competency Framework for QAFP professionals, CFP professionals and F. Pl. designation holders, as outlined in the Canadian Financial Planning Definitions, Standards & Competencies.

Explain the purpose of the FP Canada/IQPF Projection Assumption Guidelines.⁸

Explain the financial planning assumptions as outlined in the unified set of FP Canada/IQPF Projection Assumption Guidelines.⁹

Identify FP Canada’s model financial plan structure, which reflects the integrated nature of financial planning.

Explain the integrated nature of financial planning.

Identify that a complaints process¹⁰ exists for potential breaches of FP Canada Standards Council Standards of Professional Responsibility.

Identify that financial planners are regulated in Quebec where no individual may use the title of financial planner or purport to offer financial planning services without holding the appropriate certificate issued by the Autorité des marchés financiers (AMF).

† Refer to Section 185.