Financial Planner Standards Council (FPSC) defines personal financial planning as the process of creating strategies, considering all relevant aspects of the clients financial situation, to manage financial affairs to meet life goals.
For example, the decision of the consumer to invest money into RRSP during RRSP season versus how much money he need to take out for a loan to make renovations to his home.
However, the risk of this, and that decisions are often made in isolation and may seem reasonable in isolation but they may be unreasonable and inappropriate decisions when taken as part of the big financial picture.
This prompted the introduction of Bill 134, which recognized only the Financial Planner designation, P1. Fin., from the Institut Quebecois de Planification Financiere (IQPF) as a recognized designation for those calling themselves financial planners.
In August 2001 the Insurance Council of British Columbia addressed the use of terms such as Financial Planner, Financial Advisor or similar types of titles (“Financial Planner”) by life insurance agents.
2. Where a life insurance agent does not meet those requirements, but believes he or she is qualified through equivalent education and experience, establish basic disclosure guidelines (to be provided to a client prior to transacting business) that provides an accurate and complete description of the life agent’s education and experience .
Under Part 4.6 of the British Columbia Securities Commission's Policy 31-601, those who are licensed to sell investments may not use the "financial planner" handle unless they have (CFP) designation
Or have obtained one of the listed equivalent credentials
Professional Financial Planning Course Canadian Securities Institute (or fellow of the CSI) RFP Canadian Association of Financial Planners CLU Canadian Institute of Chartered Life Underwriters and Chartered Financial Consultants Chartered Financial Planner Canadian Institute of Financial Planning CA Chartered Accountant Institute of Chartered Accountants of British Columbia P.F.P. Institute of Canadian Bankers CMA Certified Mgmt Accountant Certified Management Accountants Society of British Columbia or of the Canadian province or territory in which the applicant is resident CGA Certified General Accountant Certified General Accountants Association of British Columbia or of the Canadian province or territory in which the applicant is resident CFA Chartered Financial Analyst Association for Investment Management and Research
Regulators of financial products and services such as the British Columbia Securities Commission have begun to recognize the importance of financial planning.
However, they do not feel they have the expertise or desire to directly oversee or regulate it directly.
Co- regulation allows the regulator to maintain some oversight over the individual who is registered with them but they defer the standard-setting activities and the certification to the Financial Planner Standards Council.
Financial Planning as a Self-Regulating Profession
By carving financial planning off as a self-regulating profession as opposed to adopting it as a co- regulatory function within an existing regulatory regime you risk adding an additional layer of regulation that is actually not achieving anything
Greater risk of overlap if certified financial planning become a self-regulating profession and start regulating financial planning as if it were entirely independent from the community of financial advisors out there who are licensed to sell product.
I support the mandate in establishing and enforcing uniform professional standards for financial planners because the public interest would be best served if those working in the financial planning field had access to a single, internationally recognized professional designation
I support a co-regulatory regime between product dealers and a national self regulating certifying financial planning body