Following news of the Canadian Association of Financial Planners’ plans to hive off administration of the RFP designation into a new trade group, the CAFP is now planning a merger with the Canadian Association of Insurance and Financial Advisors.

CAIFA and the CAFP released a discussion document to their respective membership groups today that proposes the formation of a new single professional organization, the Canadian Association of Financial Planners and Advisors.

The document imagines CAFPA as a professional association representing the interests of financial planners and financial advisors, eliminating duplicate organizational costs and reducing consumer and industry confusion.

The new group imagines two classes of members, preserving the CAIFA-CAFP distinctions. CAFPA planners will be required to actively use the six-step financial planning process when providing financial planning advice to their clients. They must abide by a Code of Ethics, adopt practice standards, carry errors and omission insurance, and be subject to periodic peer review.

CAFPA advisors will be regulated, abide by the Code of Ethics, and carry errors and omissions insurance. Both planners and advisors must acquire 30 hours of continuing education annually.

Having a professional designation will be a CAFPA membership requirement. Planners must have the Certified Financial Planner, the Chartered Life Underwriter, or the Pl. Fin. designation. Advisors must be authorized to use the CFP, the Pl. Fin., or the CLU designation within seven years of joining CAFPA.

CAIFA chair, Lee Raine, noted that “the formation of CAFPA will benefit both CAFP and CAIFA members. Each organization has unique programs that will benefit the members of the other organization. CAFPA is the vehicle to bring those programs together.”

Cheryl Bauer Hyde, CAFP chair, said, “CAFPA members will quickly establish themselves at the pinnacle of the financial services industry. Our branding programs will educate consumers on the value of relying upon a CAFPA member for sound financial advice and guidance.”

Copies of the discussion paper will be available on the associations’ Web sites by 14:00 ET today. http://www.caifa.com