Financial planner proficiencies proposals miss the mark, says CAFP

CAFP has been a long time
advocate for the regulation of
people who hold themselves out as
financial planners. While CAFP
supports the government’s present
regulatory initiative, these
particular proposals do not help
consumers, it says.

“This is a sad day for
consumers. The CSA has wasted a
perfect opportunity to set a high
practice standard for financial
planners. Instead, the standard
has actually been lowered because
the CSA has sanctioned so many
types of advisors. Unfortunately,
many of them have only a partial
financial planning education,”
says CAFP chair, Ron Graham,
R.F.P.

Two professional financial
planning designations in Canada
that represent a comprehensive
financial planning education are
the Certified Financial Planner
(CFP) and the R.F.P. (Registered
Financial Planner). “If the
principal goal of the proposals
is to protect the public from
unqualified planners, why, then,
were so many of them
grandfathered?” asks Graham.

The paper does not identify
ethical practice as a required
proficiency, he says. “That’s an
incredible omission. What the
CSA has said, in effect, is that
not only do planners not need a
complete professional education,
they also have no requirement to
put their clients’ interests first.
Consumers had better beware,” said CAFP president Terry Taylor

“There is now more reason than
ever for Canadians to deal with a
member of the Canadian Association
of Financial Planners if they want
a competent and ethical planner.”

IE Staff