Financial Planning Standards Council is urging Canadians to improve their “hiring literacy” when engaging financial planners.

According to new research conducted by The Strategic Counsel on behalf of FPSC, far too many Canadians are misinformed about the required qualifications and ethical obligations of their planners. For instance, an overwhelming majority (70%) of survey respondents falsely believe that individuals must be licensed in order to call themselves a financial planner.

As part of its campaign to encourage Canadians to hire smart, FPSC the standards setting and enforcement body that oversees CFP certification) is sharing this research to debunk some of the myths Canadians hold regarding financial advice.

“With the exception of Quebec, anyone in any province can call themselves a financial planner without meeting any minimum qualifications or standards,” says Cary List, president & CEO, FPSC.

“We strongly encourage Canadians to seek advice for their financial planning needs, but also to make sure they hire smart. Poor ‘hiring literacy’ can put Canadians at risk of engaging individuals who may not be appropriately qualified to meet their needs; individuals who may deliberately or inadvertently misrepresent their qualifications as well as their ethical and professional commitments” adds List.

“Canadians put themselves in the driver’s seat when they hire smart. There are many professionals who offer highly competent and ethical service, always putting their clients first. But in absence of common national standards that require all financial planners to meet professional qualifications and be accountable to oversight, Canadians must protect themselves by ensuring they’re hiring appropriate qualified and credentialed professionals. It’s critical they ask the right questions of their potential planner, and know what the red flags are,” says List.

In encouraging Canadians to learn more about what to look for in a financial planner and what to expect from a professional, ethical engagement, FPSC offers the 10 Tips for Choosing a Planner, Questions to Ask A Planner and other resources at www.fpsc.ca. Additionally, the Standards of Professional Responsibility provides a guide for consumers of what to expect from a CFP professional.

The Strategic Counsel conducted an online survey of 1,079 English Canadians (outside Quebec) over the age of 18 who have used some financial planning services offered by financial advisors, and those who have not used financial planning services from financial advisors. The survey was conducted between Sept. 11-30, 2011.