Menu
Cart 0

CFP Practice Standards and Ethics

Rule 16 – Suitability of investment strategies given client’s risk tolerance.

Posted by David Gobeil on

When the December 2017 CFP examination was scored, ethical issues were flagged in certain candidate responses. Rule 16 – Suitability of investment strategies given client’s risk tolerance The CFP professional must only make recommendations that are prudent and suitable for the client (Rule 16 of the FPSC Rules of Conduct). When recommending an investment strategy, the CFP professional must consider all the client’s suitability factors, not just the rate of return required to achieve an objective, or the client’s age or time horizon. In particular, the CFP professional should ensure that any investment recommendations are suitable given the client’s risk...

Read more →

Rule 8 - A CFP must disclose potential conflicts of interest.

Posted by David Gobeil on

When the December 2017 CFP examination was scored, several ethical issues were flagged in certain candidate responses. Rule 8 – When working with related clients Rule 8 of the FPSC Rules of Conduct contained in the Standards of Professional Responsibility specifies that a CFP professional must disclose potential conflicts of interest between the CFP professional and the client, and between clients in a joint engagement. Such disclosure must be made in writing to the client(s). Rule 8.1 prohibits a CFP professional from providing services to a client where there is an existing conflict of interest, absent specific written consent by...

Read more →

Embedded ethical dilemmas

Posted by David Gobeil on

In this Post, we will explain the inclusion of embedded ethical dilemmas in The CFP Examination. As per The CFP Examination Blueprint, Professional Skill 1 – Professional Responsibility will be integrated into at least 6% of The CFP Examination items. Specifically, at least 6% of The CFP Examination score points will include situations with embedded ethical dilemmas. During scoring of the exam, scorers will note any potential breaches of ethics suggested in candidate responses, and candidates will receive a breach score for ethics, which will not be part of the score used to determine pass/fail status. However, candidates who exhibit...

Read more →

Expanded Continuing Education Categories

Posted by David Gobeil on

The FPSC has expanded what qualifies as Continuing Education (CE) to include activities focused on Professional Responsibility, developing practice management skills, acquiring relevant product knowledge, and helping to advance the financial planning profession. Each CFP® professional must acquire at last 25 verifiable continuing education credits (CE credits) each year: a minimum of 10 credits linked to the CFP Competency Profile, a minimum of 1 credit from the category of Professional Responsibility, and a maximum of 5 credits in each of the other three CE categories of Product, Practice Management and Giving Back. There are now five categories of CE: Financial...

Read more →

The FPSC® Financial Planning Practice Standards

Posted by David Gobeil on

The FPSC has “refined” the Financial Planning Practice Standards as described on http://www.fpsc.ca/cfp-professionals/refinements-financial-planning-practice-standards Essentially, they have added a new Practice Standard 1 and the Practice Standard for Monitoring a Plan has disappeared. Practice Standard 1, Explain the Role of the Financial Planner and Value of the Financial Planning Process - Ensure the client understands the role of a financial planner and the value of the process of financial planning in identifying and meeting the client’s personal goals, needs and priorities. This practice standard is intended to educate clients around what to expect of financial planning and the value proposition of...

Read more →

Sale

Unavailable

Sold Out