1. NOVEMBER 2012
FPStandardISSUE 6
MulticulturalismOpportunity or Challenge?
FPSC’s
enforcement process
explained
P5
Navigating Canada’s
multicultural landscape
as a financial planner
P7
Financial Planning:
An international
perspective
P10
IDEAS, THOUGHTS AND TRENDS FOR TODAY’S CFP®
PROFESSIONAL
2. FPStandardP1
BytheNumbers
Multiculturalism has always been a core component of the collective Canadian identity.
Immigration in Canada continues to heavily influence our demographics. According
to Statistics Canada, there is an average of one person immigrating to Canada every two
minutes.With immigration continuing to be a factor of population growth, there are
opportunities for financial planners in Canada to better serve these multicultural markets
while connecting with a diverse network of clientele. Formoreinsightonmulticulturalism,
read “Working and Connecting in a Culturally Diverse World” on page 7.
Financial Planning Standards Council (FPSC®)
902-375 University Avenue, Toronto, ON M5G 2J5
Telephone: 416 593 8587 Toll Free: 1 800 305 9886
Email: inform@fpsc.ca Website: www.fpsc.ca
Editor-in-Chief ......................................................................................................................... Tamara Smith
Contributors .................................. Daniel Ongaro, Jay Cameron, Lisa Shedden, Winna Tse
Creative Director ................................................................................................................. Solange Rivard
The FP Standard is published twice annually by Financial Planning Standards Council (FPSC®).
3%
10%
63%
of newcomers are classified
as economic immigrants
(skilled workers).
of Canada’s population reported
a Chinese language, including
Mandarin and Cantonese, as
their mother tongue.
6,452,305
600+
2/3
of elementary and secondary
students are foreign born.
immigrants live in Canada
(19% of Canada’s population
of 33.5 million).
of the population increase
in Canada since 2006 is
the result of immigration.
newcomers per day have
arrived in Canada since 2006.
FPStandard
3. NOVEMBER 2012 | ISSUE 6 | P2
Cary’sinbox
FPW, FLM andYou
Discussing the issues that cross the desk
of FPSC’s President and CEO
You may have noticed that FPSC’s
annual Financial Planning Week (FPW)
found a new month to call home as
this year’s FPW takes place during
the second annual Financial Literacy
Month (FLM). Moving FPW to coincide
within FLM made a lot of sense as we
consider the two intrinsically linked
and natural extensions of our vision to
see Canadians improve their lives by
engaging in financial planning.
We believe that the lives of every
Canadian would be improved if they
engaged in financial planning, and the
empirical evidence supports this.
Our landmark Value of Financial
Planning study has provided statistical
evidence of the numerous benefits
of engaging in financial planning.
Individuals who have a financial plan
report that they feel better emotionally,
are better off financially, and are
overall more content with their life
than those without a plan. The gap
between those who are working with
a CFP® professional and a non-certified
financial planner is also significant.
However, we recognize that many
Canadians will not seek out or realize
the benefits of financial planning until
they have an improved level of financial
literacy. Along with other organizations,
we continue to champion the need to
create this foundation.
Such a foundation will not be created
so much by the organizations that
champion financial literacy, but by the
efforts of individuals who actively seek
ways to increase the financial literacy
of others. By the conclusion of FPSC’s
fourth annual FPW, there will have been
over 100 individual events hosted by
CFP professionals to educate Canadians
in communities across the country
(see page 11 for highlights of this year’s
Challenge winners). These events have
focused on everything from basic
financial matters such as how to build
a budget or set up a retirement savings
account, to the importance and benefits
of financial planning. Events also
focused on “hiring literacy,” to ensure
individuals seeking financial advice
know how to identify competent and
ethical planners who put the interests
of the client ahead of their own.
These events and other efforts outside
FPW by individual CFP professionals
reach Canadians in ways FPSC
and other organizations could not
achieve alone. It is these individuals,
championing the cause of financial
literacy by sharing their knowledge,
skills and expertise with those in their
own communities, who will leave a
lasting impact on the lives of others.
For those who have not previously
been proactive in helping build the
financial literacy of others in their
community, I ask that over the next
year you consider making at least
one attempt to volunteer your time
and expertise to those who may not
ordinarily seek out your services.
It does not take a lot of time or effort
to make a measurable and meaningful
difference in the lives of other Canadians.
Whether it is spending half a day in
a classroom aiding teachers in the
delivery of financial literacy education,
explaining to new Canadians how to
set up a bank account, or volunteering
your expertise to needy Canadians,
there are ample opportunities to make
a difference in the lives of others and
become a financial literacy champion.
While FPSC continues to seek ways to
collaborate with government and other
organizations that seek to increase the
financial literacy of Canadians, it is the
actions of individuals in communities
across Canada that will allow us to meet
our collective financial literacy challenge.
Are you making a difference
in your community? Want
to see Cary write about a
particular subject? Let us
know at fpstandard@fpsc.ca
subject line “Cary’s inbox”
Cary List, CA, CFP®, is president and CEO of FPSC.
Cary oversees CFP certification and has spent
most of the past decade elevating the standards
of the designation and working for recognition of
financial planning as a distinct profession.
4. FPStandardP3
Engaging Canadians
in Financial Planning:
What’s Holding Canadians Back?
You have two slips of paper, each with pictures of a piece of chocolate cake and an apple.
On the first slip you must circle which of the two you want to eat right now, and on the
second slip, which you want to eat next week. If you are like most people, you circled the
cake to eat now and the fruit to eat next week. Why?
Understanding human psychology unlocks the secrets to
why we do the things we do, and may help you recognize
why your clients may not always act in their own best interest.
According to Dilip Soman, a Professor of Behavioural
Economics at the University of Toronto, and presenter
at FPSC’s fourth annual Financial Planning Vision 2020
Symposium on November 20, many Canadians are reluctant
to practise good financial habits because, quite simply,
“Consumption is more sexy than savings.”
“It’s exciting to buy, it’s exciting to eat, it’s exciting to watch
movies. It is not as exciting to buy insurance or balance your
cheque book or education account,” explains Soman.
He believes our senses control much of what we do and how
we spend our money, saying things we can touch, taste and
smell drive decision making.
“I know I shouldn’t be eating this fancy dessert and instead
putting the ten bucks away in my retirement account,” he
offers by way of explanation, “but if I’m walking past a cake
shop and I can smell the darn thing, I’m going to take it.”
Other behavioural concepts that may be holding clients back
are a little less obvious. For example, when offered two similar
rewards, humans show a preference for the one that arrives
sooner rather than later, and often discount the value of the
later reward, depending on the length of the delay.
Also, Soman says, “Things look very rosy in the future because
we tend to think about the same act differently in terms
of when it is going to happen.” To illustrate the point, he
asked a group to write down what it means to construct a
retirement savings plan in the future.
“People say I am securing my future and making sure my
children are protected,” Soman explains. “But if you tell
people they are to work on this tomorrow, they will say [they
are], ‘Doing research in terms of which is the best investment,
calling an advisor or opening a bank account.’”
Because long-term activities require more cognitive resources,
Soman suggests we often put off doing such things, believing
we will have more time to do them tomorrow.
He also believes that the lack of adequate financial literacy
may be holding back some Canadians. “When you decide
to say no to the chocolate cake, what are you going to do
with the ten bucks? It’s one thing to just stash it away in
the bank but I think long-term financial well-being requires
more expertise.”
Even so, Soman admits, “People who don’t save as much as
they should know they don’t save as much as they should.”
5. NOVEMBER 2012 | ISSUE 6 | P4
Personal Connection Is Key
to Reaching the Underserved
Financial Planning Standards Council’s
vision is to see Canadians improve their
lives by engaging in financial planning.
Yet the perception among the public
remains that financial planning and
financial advice benefits only the rich,
and many Canadians—particularly
young adults, women, seniors and
visible minorities—do not seek out
financial planning advice or are
overlooked by financial planners.
This perception has been largely
disproven. According to studies,
including FPSC’s ValueofFinancial
Planning study and Professor Claude
Montmarquette and NathalieViennot-
Briot of Cirano Research’s study,
EconometricModelsontheValueofAdvice
ofaFinancialAdvisor, the added value of
financial planning and financial advice
cuts across all demographics including
age, gender, and level of education or
even occupation.
In the last few years more financial
planners have begun to reach out
to these underserved markets where
individuals may not ordinarily actively
seek out financial advice. Some financial
planners, including Heather Holjevac,
a CFP® professional, and FELLOW OF
FPSCTM
recipient, have built their
financial planning business around
addressing the needs of these
sometimes-overlooked individuals.
“A lot of planners that have a specialized
niche of clients do it not only as a
purpose for their business, but also
“ A lot of planners that have
a specialized niche of clients
do it not only as a purpose
for their business, but also
as their passion.”
Heather Holjevac, CFP®
as their passion,”says Holjevac, whose
practice focuses on working with
women, divorcees, caregivers and
seniors to help them achieve clarity
and confidence with their finances.
Holjevac’s passion for serving her
clientele has been shaped and largely
influenced by her own experiences.
“I’ve faced my own challenges; so
have other members of my family,
close friends and relatives. I see it as
an opportunity to use my own skills
and knowledge to help women I feel
a genuine connection with. Helping
them through their tough times and
to see their success is very rewarding
work for me.”
But there are unique challenges in
reaching these markets.“You have to
be able to connect with your audience.
If you can’t understand where they
are coming from because you have
no shared or similar experience it is
difficult to grow the relationship and
build the trust you need to see your
clients succeed,”says Holjevac.
Holjevac believes there are other
financial planners like her, trying to
reach out to a different demographic
of clients, but believes many become
frustrated with the limited immediate
results of their efforts.“The demographic
I work with are usually individuals
who are in a very vulnerable position
and experiencing life changes such
as taking care of a parent, or a recent
divorce. Decisions about planning or
investments are not made immediately
but after a six-to-twelve-month window
and only after providing them with a lot
of added value.”
But there is a similarity among all
demographics when it comes to their
financial planning needs.“There are
a lot of emotions, and when they
are compounded with money issues,
the biggest thing people are looking
for is someone that they can trust.”
7. NOVEMBER 2012 | ISSUE 6 | P6
However, if the inquiry is about a CFP professional, the
complainant may elect to launch a formal complaint.
All complaints against a CFP professional must be made in
writing (either by mail or e-mail, or through FPSC’s website)
in accordance with the DRP.
“Many complaints are the result of miscommunication
between parties,” says Leona Tranter, Director, Standards
Enforcement at FPSC. “We encourage clients to speak with
their CFP professional for clarification and possible resolution
before escalating the situation to that of a formal complaint.”
To avoid these miscommunications, and to protect
themselves from disciplinary proceedings, Tranter urges
CFP professionals to monitor and update changes to their
clients’ profile and to the nature of each engagement, and to
“document, document, document.”
Once a complaint has been made, FPSC conducts an initial
review and assessment of the complaint within 90 days.
“We determine whether, if all the facts or allegations made in
the complaint were true, it would constitute a breach of the
Standards of Professional Responsibility,” says Tranter.
“If the answer is ‘no,’ we will dismiss the complaint and the CFP
professional would never know about it. However, if we answer
‘yes’ to that question, a formal investigation will be opened.”
When a formal investigation is launched, FPSC may consult
the complainant and ask for any supporting documents, if
not already provided, that support the claim. FPSC then
gives written notice to the CFP professional that a formal
investigation has commenced and outlines the substance
of the complaint.
CFP professionals are required to fully co-operate with
the investigation, and have 30 days from the receipt of
the notice to reply to FPSC in detail, including providing any
documents or files in respect to the complaint. “The worst
thing you can do is resist the investigation,” says Hagel.
Hagel also cautions against misleading an investigation
by presenting falsified documents. “Do not fudge or
manufacture records—99.99% of the time you will be found
out and caught, and you may be more severely punished.
You also hurt your own credibility in the proceedings.”
A formal investigation will result in one of three outcomes; a
dismissal of the complaint where no further action will occur,
a dismissal and issuance of a private letter of caution, or a
referral to a disciplinary Hearing Panel for adjudication.
Cautions are a private sanction that remain on a CFP
professional’s record with FPSC; they are typically issued
to address a situation in which a finding of professional
misconduct is unlikely, but a warning to the CFP professional
is nonetheless warranted. However, some cautions are
made available on FPSC’s website (with the name of the
CFP professional withheld) and in the FP Standard as
“Anonymous Case Histories” as useful learning guidance
to other CFP professionals.
In instances in which Standards Enforcement refers the
matter to a Hearing Panel, the Director of Standards
Enforcement must make an Offer of Settlement on behalf of
FPSC before the case proceeds to a Hearing Panel. An Offer
of Settlement includes a statement of agreed-upon facts;
details of the rule(s) violated and the agreed-upon penalty;
an acknowledgment that the violation and sanction will be
made public; and the waiver of all rights to appeal.
Should a CFP professional elect not to accept the Offer
of Settlement, a Hearing Panel, consisting of a Panel
Chair selected from the Enforcement Policy Committee (EPC)
and two volunteer CFP professionals, will hear the arguments
of both parties and render a decision within 30 days. “Either
party can appeal the verdict within 30 days of the decision on
grounds concerning errors of fact or process,” says Tranter.
If the decision has been rendered and finalized, and if the
allegation(s) of misconduct by a CFP professional are found to
have occurred, the result will be disclosed on FPSC’s website
for a period of 10 years, and also may be included in any of
FPSC’s publications, in the media, and disclosed to the CFP
professional’s employer at FPSC’s discretion.
Tranter acknowledges that the disciplinary proceedings will
always have critics from both ends of the spectrum. “The
complainant may think we are too lenient, while in the same
instance, the CFP professional may believe the sanction was
too harsh.” Tranter adds, “But at the end of the day, if the
process is open, transparent and fair to all parties, we are
doing our job effectively.”
8. FPStandardP7
Diverse
Working&Connectingina
World
Culturally
Cultural differences, unfamiliarity with Canada’s financial
products and services, language barriers, and issues
of trust all pose challenges for newcomers and first- or
second- generation Canadians.
According to the 2011 Census, two thirds of the people
added to the Canadian population since 2006 were
immigrants. Statistics Canada projects that by 2031 almost
one half of the population over the age of 15 will be
foreign-born or have at least one foreign-born parent.
Thriving multiculturalism offers rich opportunities for
financial planners and professionals to establish healthy
relationships and better serve this emerging population.
The key to connecting lies within a better understanding
of different cultures and their traditions. But Canada receives
its immigrant population from more than 200 countries
of origin, so where do you start?
Lionel Laroche, President, MCB Solutions, and presenter
at FPSC’s fourth annual Financial Planning Vision 2020
Symposium on November 20, suggests starting by
choosing a community you’d like to help, one that
resonates with you personally.“Learn more about that
community in particular by being involved in their events.
If you have Chinese customers, you want to really connect
with them around Chinese New Year. If you have Hindu
clients, you want to connect with them at Diwali.”
Through his company Laroche provides cross-cultural
training, coaching and consulting services to a wide range
of businesses. He recommends planners find a cultural
“mentor”to help bridge the gap between the two worlds:
“Someone who’s from that community, for example, but has
really adapted to the Canadian way of life,”he suggests.
“Maybe a second-generation person who can understand
both ways and help you interpret or decipher what’s going
on when you have a meeting with people and the outcome
is not what you were expecting.”
Second-generation Canadians often have what Laroche
refers to as“a weighted average”between the Canadian
mindset and that of their parents.
To get better acquainted, Laroche proposes visiting your
clientele’s country of origin. He says,“Go to their home
country. And see what it is like. Because when you go to
China or India there’s a lot of behaviours that Chinese or Indian
people have in Canada that may not make sense to many
of us but they make complete sense in their home context.”
He adds that travelling to your client’s country enables
better two-way communication.“When you meet anybody
from any country outside of Canada and you can tell them,‘I
have been to your country,’you will see their eyes light up.
It’s like when you travel to the US and someone says‘I have
been to Canada.’You immediately look at this person very
differently from the average person who doesn’t know
where Canada is.”
Canada’s open-arms approach to immigration has resulted
in the fastest-growing population of any G-8 nation:
600 newcomers have arrived in Canada daily since 2006.
Seventy percent have settled in Toronto, Vancouver and
Montreal. British Columbia has the highest proportion of
visible minorities, followed by Ontario. The Ontario city of
9. NOVEMBER 2012 | ISSUE 6 | P8
d
Canada’s open-arms approach to
immigration has resulted in the
fastest-growing population of any
G-8 nation: 600 newcomers have
arrived in Canada daily since 2006.
continued on page 9
Markham has the highest concentration of visible minorities
in the country—65.4 percent of its population, with half
being Chinese and one quarter being South Asian.
Laroche says,“I live in Markham, and whenever I go to a
bank there, the odds of being serviced by someone who is
Chinese is pretty high. And in that sense, I think the banks
have it right. Because if they can service people in their first
language they can relate to the customer.”
Jalileh Helalat, Manager of Programs and Services with
Skills for Change, agrees that familiarity is number one
when earning the trust of the newcomer. Skills for Change
is a not-for-profit organization in Toronto that offers
programs for internationally trained professionals seeking
employment in their field.“You need to have someone
who can speak with them in their own language,”she says,
“to be able to answer every question, to talk about the
benefits, of, let’s say, life insurance and other investments.”
She says most immigrants walking through the doors of
Skills for Change are professionals and“the majority come
with money.”Despite having wealth to invest, she believes
many newcomers feel emotionally insecure in a new
country and prefer to simply leave their money in the bank
rather than take chances on unfamiliar financial products.
“When you educate newcomers, you speed up the process
of integration not only into the Canadian work culture but
into their new community. And if that doesn’t happen they
cannot contribute. We cannot benefit from their skills and
from their investments.”
Helalat speaks from the heart. Before working for Skills
for Change, she was a client and says she“completely
understands the struggles”of new Canadians:“I went
through every step; I faced a lot of barriers.”
Helalat encourages planners to consider approaching
immigrants and international professionals by way of
sponsorship and collaboration with non-profit agencies.
Skills for Change currently works with a variety of financial
institutions and government regulatory boards to present
information sessions to help newcomers with their finances.
“I think financial institutions can really do a lot if they are
willing to know more about the newcomers and the
benefits of dealing with them,”she explains.“And with
the proper guidance, they would really be able to benefit
themselves, the community and country as a whole.”
10. FPStandardP9
Working & Connecting continued from page 8
continued on page 12
Whether meeting in an office setting or consulting
with a group at a seminar, Laroche urges all planners
to sharpen their listening skills to better understand the
diverse perspectives of the people in the community
they serve. He recommends paying special attention
to culture-specific attitudes on credit, mortgages and
using debt to finance everyday expenses.
“For people coming from most of East Asia, any debt is bad
debt.They’ll often be very reluctant to have a mortgage or
even get a loan for a car. They’d rather live in a small place
and save money until they have enough to pay cash for a
house, as opposed to using a mortgage no matter how low
the interest rates.”
That’s good news for the financial planning sector according
to Laroche.“Immigrants often save more money and in turn
have more to invest.Those are obviously very interesting
potential clients.”
Laroche notes that 30% of Canada’s wealthiest people were
born outside of the country. Survey results from a BMO Harris
Private Banking study conducted in 2011 confirm that almost
one third of all high–net worth Canadians (defined as those
with investible assets of $1 million or more) were not born in
Canada and almost all new affluent Canadians keep the bulk
of their wealth in Canada.
Abundant Opportunities
Currently, Canada holds the title for accepting more
immigrants per capita than any other country, and Laroche
sees abundant opportunities to meet the needs of the
country’s multicultural population. Take, for instance, the
small business owner. Laroche says,“The percentage of
immigrants who start their own business is significantly
higher than the percentage of Canadians who start their
own business.” He points out that some bring their business
dreams to Canada while others start businesses out of
necessity after difficulty finding work in their professions.
Laroche also advises planners to carefully discuss risk
tolerance when setting objectives for newcomers.“People’s
idea of what is a good investment and what is a risky
investment will very much depend on where you are
in the world,”he begins.“In Mexico, for example, a bond
is considered a risky investment because the Mexican
government has defaulted on bonds on several occasions.
The average Mexican’s idea of a safe investment is a piece
of land or a house. No matter what happens to the financial
markets—the country can go upside down and it has
in the past—that land will still be there and still be mine.”
“On the other side of the spectrum, you have a place like
Hong Kong,”he continues.“In Hong Kong, everybody’s buying
into the stock market so it only gets risky for them when you
start getting into derivatives. In Hong Kong the number-one
subject for chitchat is the markets. Here we talk about the
weather and hockey; there they will discuss the currency
market, the stock market and the real estate market.”
In places where people are comfortable taking risks,
Laroche says it is sometimes difficult to sell financial
products like life insurance. Insurance is also a delicate area
of discussion because in Chinese culture it’s disrespectful
to speak about death.“Discussing death is almost like
inviting it,”cautions Laroche.
He also advises planners to do a little research before talking
to clients about estate planning and the role of philanthropy.
“Planning for death is along the same lines as discussing life
insurance. It’s not a popular thing in certain cultures. Also,
people don’t leave money to charity; money is redistributed
to family members.”Likewise,“Immigrants tend to be less
active in non-profit organizations with the exception of those
that specifically give towards their community because in
collective cultures, you volunteer within the context of your
family.You volunteer by helping your brother-in-law move
and you help your cousin twice-removed with the children’s
care.The family is much more extended in most cases and
the social obligations are much higher, which leaves very little
time for volunteering in the context of the average Canadian.”
Service Fees
An immigrant himself, Laroche points to a Canadian
convention he personally loathes—fees.“Fees are definitely
a challenge because there are many countries where
the fees are essentially included in the service. I come
from France. In France banks don’t charge service fees
11. NOVEMBER 2012 | ISSUE 6 | P10
Global Trends in Financial Planning
withKarenSchaeffer
Karen Schaeffer, CFP®, is the Board
Chairperson for Financial Planning
Standards Board, the non-profit
membership association of 24 CFP
certification bodies including FPSC.
We recently caught up with Karen
to discuss the increase in CFP
professionals in existing markets, plans
for expansion in the Middle East and
regulatory trends happening in
the financial planning profession.
Growth of CFP Marks
The emergence and continued growth
of wealth (particularly the middle class)
in countries such as Brazil, India, and
China and other emerging markets has
fuelled the growth of newly certified
CFP professionals. In China alone, in
the first half of 2012, the number of
CFP professionals grew by 31% from
10,800 to more than 14,000.“In these
territories, people are getting wealthier.
With increased wealth comes a need for
financial planning, because individuals
now have something they need to
protect and grow,”says Schaeffer.
The global economic crisis has
undoubtedly made consumers more
aware of the need for competent,
ethical financial planning advice
and Schaeffer sees opportunities for
growth in markets such as Canada
and the United States where the
CFP designation is already established.
“In the US, 67,000 CFP professionals
simply can’t meet that need. We also
see a trend [in the US] of more brokers
leaving the traditional wire house firms
to work as independent advisors and
these advisors wanting to distinguish
themselves with the high standards
required of CFP professionals.”
Middle East Expansion
In 2012 FPSB held its first meeting in
the Middle East region when the 24
affiliated organizations met in Dubai.
“It was a perfect opportunity to explore
opportunities for growth,”says Schaeffer.
“Our discussions with government and
business representatives in Bahrain,
Dubai, Jordan and Saudi Arabia really
helped us understand the readiness
of the region to embrace financial
planning.”FPSB remains in discussions
with the region’s banking institutes and
is hopeful that they will be able to bring
CFP certification to the region soon.
Regulatory Trends
Schaeffer believes that the proposed
and recent reforms in the United
Kingdom (Blueprint for Reform),
Australia (Future of Financial Advice,
or FOFA), the United States (Dodd-
Frank Act) and other areas have been
“motivated by a lack of [consumer]
trust, and a lack of confidence in
products.”While the movement in
the United States has yet to take
much effect other than increased
compliance requirements,“in the
UK and Australia we’re seeing moves
toward recognition of professional
bodies, increased minimum
education requirements
and perhaps the most significant
change—the banning of commissions.”
While Schaeffer was“generally happy
with the FOFA legislation,”FPSB would
have“liked to see protection of the
term‘financial planner’included as
part of the legislation, though our
understanding is that the door is not
closed to that possibility, so we could
see it come forward in the future.”
Although each country, including
Canada, has to deal within its own
regulatory environment, Schaeffer
reiterates that future regulation of
financial planning and financial planners
will continue to be“aligned along the
global themes of consumer protection
and transparency while allowing for
significant national variation.”
12. FPStandardP11
2012 FPW Challenge Winners
Alberta
Kelley Doerksen, CFP®
Edmonton, AB
Family Financial
Wellness Event
Kelley will host a family-focused
event that will empower
families to take step-by-step,
positive financial action to
achieve their goals.
Prize money donated to $250
RESPs to each of two attendees
Atlantic Canada
DeborahJeanYoung,CFP®
Deer Lake, NL
The Retirement Rules
Have Changed, What Now?
Deborah will cover the changes
to Canada Pension, Old Age
Security and retirement in
her seminar geared toward
the 50-plus age group.
Prize money donated to
Deer Lake Food Bank
Redge Deg, CFP®
Halifax, NS
PlanningYour Financial Future
Redge will present the different
aspects of selecting an
executor of state, and provide
each attending family with a
package of financial planning
reference materials.
Prize money donated
to Student Graduation
Scholarship
In 2011, FPSC® initiated the Financial PlanningWeek Challenge, which encourages CFP® professionals across Canada to promote
financial planning in their communities.This year, the following individuals submitted unique and creative proposals on how they
would bring financial planning to specific demographic groups across Canada. All 12 winners decided to give their $500 prize
money to their community. For more information on these events and others please visit www.financialplanningweek.ca
British Columbia
Alexandra Gilgunn, CFP®
Victoria, BC
Financial Planning
forYoung Families
Alexandra’s two workshops
will reach out to young
parents who need more
hands-on experience with
managing often-limited
financial resources.
Prize money donated toYoung
Parents Support Network
Stephanie Dean, CFP®
Victoria, BC
Financial Planning
for All Abilities
Stephanie will host an
educational event to promote
awareness and instigate action
to ensure a financially stable
future for people with disabilities.
Prize money donated to RDSP
contribution for a participant
TomMarkham,CFP®
andDavePetrie,CFP®
Delta and Surrey, BC
Understanding Money Matters
and Having FunWith It and
Business Succession Planning
Tom and Dave will present two
financial planning seminars:
one targeted to high school
students and one focusing
on business owners.
Prize money donated to
Delview Secondary School
Manitoba
JewelReimer,CFP®
Headingley, MB
The Fuss About Fees
Jewel will present to the
general public an open
discussion of fund fees
and how they affect one’s
financial future.
Prize money donated to
Headingley Library
Ontario
NancyEdmison,CFP®
Milton, ON
Financial Strategies
for Caring for a Loved One
with a Disability
Nancy will present a seminar
focused on financial
considerations when planning
for a loved one with a disability.
Prize money donated to
Windrush Stables
PaulBeck,CFP®
Hamilton, ON
It’s AboutYour Financial Life
Paul will host an event focused
on the different elements of
money and financial planning
to a middle-aged audience.
Prize money donated to
Marvin Ryder Foundation
RogerTouw,CFP®
Toronto, ON
Students: Plan forYour Succe$$
Roger will host two seminars
to enhance the financial
understanding of students
and provide them with tips
to build financial security.
Prize money donated to
Go Green Project
VanessaChan,CFP®
Markham, ON
Parents Helping Kids Help
Themselves
Vanessa will host two
workshops to give tips to
parents on how to integrate
early childhood financial
literacy into their family life.
Prize money donated to Sir
John A Macdonald Public School
Saskatchewan
JayStark,CFP®;StuartSutton,
CFP®;Tim Hansen, CFP®;
and Andrea Hansen, CFP®
Saskatoon, SK
CONNECT 2012:
Workforce Finances to
Personal Family Finances
CFP professionals from Sutton
Financial Group will provide
immigrants and refugees with
information about the financial
aspects of the workplace.
Prize money donated to
Global Gathering Place
13. NOVEMBER 2012 | ISSUE 6 | P12
A CFP professional since 1998, Clay Harmon has been working in the financial planning industry for over 35 years. Clay
currently works with a First Nations community in British Columbia as a contract administrator and also serves on the
board of the Aboriginal Financial Officers Association (AFOA). Clay has presented personal financial planning workshops
for individuals, and specializes in strategic investment policy for First Nations communities.
The residential school legacy can still be felt today.“As a result [of this policy], multigenerational problems persist, and
there are also challenges in adapting to the current North American government structure,”says Clay.“So I admire the
communities that are stepping up to the plate and really taking control of their lives, particularly within the area of
financial planning.”
Thus, the importance of Clay’s role as a CFP professional within the First Nation community is being able to assist in these
multigenerational gaps. He is teaching individuals how to set and achieve financial goals and, by doing so, he is seeing a
positive change.
1. If I wasn’t a financial planner I’d be …
A missionary.
2. The best piece of financial advice I ever
personally received was …
Spend less than you make and live debt free.
3. The first thing I ever saved money for was …
A bicycle.
4. My most valuable possession is …
My Bible.
5. My most satisfying client interaction was …
When one participant declared that after taking part in a
personal financial planning workshop, he didn’t fight with
his wife anymore. Instead of wondering what she did with all
the money he gave her for the household, he was amazed
that she got everything done with the little that he gave her.
This section profiles a CFP professional who’s doing something inspirational, meeting a unique
need, or taking planning in a new direction! Share your story: e-mail us at fpstandard@fpsc.ca
Working & Connecting continued from page 9
for everyday transactions. They just don’t charge any
fees, that’s the way it’s been set up. So every time a bank
charges me 25 cents I react like it’s a rip-off. I’ve been in
North America 26 years; I still have that reaction every
time I see these transactions on my statement.”
According to Laroche, the biggest and most obvious
opportunity in a culturally diverse world is the market for
Registered Education Savings Plans.“Most immigrants
who come to Canada were highly educated by their
home country standards. If you have a Bachelors Degree
in India you are in the top 3% of the population, and
education is obviously of very high value to you.”
From 2001 to 2006, 56% of immigrants held a university
degree.“They come to Canada to succeed. They want
their children to succeed. Including RESPs in a financial
plan is a no-brainer,”he concludes, reminding us that
consumer behaviour and purchasing decisions are often
driven by cultural influences. Staying culturally relevant
is the key to unlocking potential growth and building
long-term relationships in the financial planning industry.
5QuestionsforClayHarmon,CFP®,CMA,FCMA,CAFM
14. FPStandardP13
ethicscorner
“Ethics Corner” presents scenarios developed from practice-based inquiries we’ve received from
CFP®professionals.LeonaTranter,FPSC’sDirector,StandardsEnforcement,providesanexplanation
of how the Case Study and the ethical issues therein relate to the Standards of Professional
ResponsibilityforCFP®ProfessionalsandFPSC®RegisteredCandidates.
We then present another Case Study and ask you to respond to it: what would you do? Read the
scenario and submit your response to fpstandard@fpsc.ca (subject line: Ethics Corner).
Brent Dallas is a CFP professional who has been providing
financial planning services for Mr. Hughes in Goose Bay,
Newfoundland. Several years ago, Brent became the
CFP professional for Mr. Hughes and his wife when their
accounts were transferred from another financial institution.
Mr. and Mrs. Hughes, both of whom are in their 70s, were
satisfied with the investments they held at the time of
transfer, and were not looking to make any changes.
Brent met with them periodically over the next several years.
During that time, Mr. Hughes fell ill, so Brent helped Mrs.
Hughes with filing tax returns and other documents.
At one meeting after Mr. Hughes had been hospitalized,
Brent recommended some investment changes to
Mrs. Hughes. She declined, saying that she wanted to keep
“things as they are.”
Several months later, Mr. Hughes passed away. Brent
learned that Mrs. Hughes had become incapacitated
and was hospitalized in a long-term-care facility. He was
contacted by her Power of Attorney (the Attorney),
a neighbour whom Mrs. Hughes had come to rely on.
The Attorney set up a meeting with Brent to transfer the
Hughes’account to another firm as he was dissatisfied with
her investments. He also wanted to change the beneficiary
designation on the registered account from Mrs. Hughes’
estate to himself.
Answer to Case Study 5
Although a Power of Attorney (POA) may give a directive
to act on behalf of another individual, a CFP professional’s
obligations is always to put the original client’s interests first.
A POA serves distinctive functions. Consequently, we advise
CFP professionals to tell clients to refrain from a general“one
size fits all”document, in favour of one with specific limitations.
When working with a POA, it is important to understand
the desired role of the Attorney. Is he acting under a POA for
property, or personal care? The former covers an individual’s
financial affairs, while the latter does not. Unless specifically
What are Brent’s
obligations to
Mrs. Hughes and/or
her Attorney?
Should he make
the beneficiary
designation change?
Case Study 5
clarity around ethical situations
15. NOVEMBER 2012 | ISSUE 6 | P14
Case Study 6
restricted, the Attorney under a POA for property has the
power to do anything the client (grantor) can, such as
account withdrawals, money transfers , and selling stocks
and bonds. Although a legal document, the POA cannot
suspend your history with your client. If your client had a
history of investing conservatively and never wanted to
make substantive changes to his or her risk profile, then
the Attorney’s sudden dissatisfaction with the financial plan
may raise some red flags–particularly if the Attorney
wishes to change the designated beneficiary of the client’s
finances to him- or herself.
The terms of the POA need to be carefully reviewed to
confirm the Attorney’s powers and its validity (e.g., many
POAs are valid on the date of execution; however some may
have a delayed effective date, or run only for a specified
time period). Further, does your firm have any established
protocol when dealing with POAs? When in doubt, it is
always advisable to refer the POA to your firm’s Compliance
Department. Often times, the additional scrutiny will flush
out the true intentions of the POA and whether or not the
Attorney is acting in the client’s best interests.
If you are concerned about the Attorney’s intentions,
the legality of the document or potential elder abuse,
advise the Attorney that, extra diligence and care must be
given during its execution. And as always, ensure that any
discussion is documented in detail.
It may be tempting to raise your concerns with the
client’s family members. Be cautious.You risk breaching
confidences. It depends upon the circumstances of each
individual case, your relationship with, and knowledge
of your client and their extended family.
Guardianship of elder abuse is still in its infancy and varies
between the provinces. The process for reporting such
occurrences, and to whom, is not consistent. In the absence
of a defined regulatory framework, any serious concern of
financial abuse, should be reported to the police.
Dolly Smith, a CFP professional in Whitehorse, Yukon,
has been practising for 20 years. Mr. Agarwal moved to
Whitehorse five months ago from Punjab, India. He saw
Dolly’s ad in the local newspaper. Mr. Agarwal consulted his
neighbour, one of Dolly’s clients, who advised that Dolly is a
knowledgeable expert and well known in the community.
Wanting to protect his assets until he established his career
in the mining industry, Mr. Agarwal called Dolly’s office and
spoke with her assistant to set up an appointment.
Prior to the appointment, Mr. Agarwal conducted his own
research to familiarize himself with different investment
options. He wanted to not only understand the conversation
he would be having with Dolly, but also ensure he would be
asking appropriate questions, as well as show that he is eager
to participate in her financial planning process.
During the meeting, Mr. Agarwal attempted to discuss what
he had learned about RRSPs. Dolly could not understand what
Mr. Agarwal was saying, asking him several times to repeat
himself. Not understanding why Dolly could not understand
the basic fundamentals of retirement planning, Mr. Agarwal,
grew increasingly frustrated. His accent became increasingly
more pronounced. Dolly still could not fully understand what
he was saying and believed that Mr. Agarwal was becoming
angry and aggressive. Mr. Agarwal then pulled out a book and
showed Dolly the page on RRSPs. He exclaimed,“Why do you
not know this?This is your job! Even I know what this means!
Does your employer not train you?”
Feeling frustrated and threatened by Mr. Agarwal’s tone,
Dolly told him that she could not be his advisor and demanded
that he leave her office or she would call the police.
Why did the meeting
fail? What could Dolly
have done differently?
E-mail your opinion to fpstandard@fpsc.ca.
Your answer may be published in the next
issue of the FPStandard.
Please be aware that if we publish your response, we will
includeyourfirstnameanddesignationalongsideyouranswer.
Your response may be edited for length.
16. 20 TM
FPSC
No more guesswork
and no risk of audit.
Introducing FPSC’s CE Approval Program.
Now, there is no more guesswork over what
qualifies for CE credits, and no risk of audit.
Learn more about the program and check out
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Look for this symbol when researching CE
providers’ activities for your assurance that
the activity qualifies as a FPSC-approved
CE Activity and the number of credits earned.
