FP Canada reviewing QAFP designation

“As with any product that you put into the marketplace, there’s always a time to reassess it and make sure that it’s achieving its objectives,” Tashia Batstone, president and CEO of FP Canada, said in an interview. “There probably are some changes that are going to be needed, and we’re working those through right now.”

Batstone and her team are reaching out to QAFP holders and firm leaders to develop a plan to refresh the designation.

The designation was launched shortly after the Financial Planning Standards Council (FPSC) was rebranded as FP Canada. It replaced FPSC Level 1 certification and was designed to qualify holders to deliver holistic financial planning to clients with less complex needs. “There’s a huge cohort of Canadians who are currently missing out on the important and much-needed counsel and guidance of a professional financial planner,” Dan Busi, FPSC’s board chair, said in a statement at the time. “QAFP certification will fill this gap by providing more Canadians with access to appropriately certified professionals.”

That gap has widened as more firms have focused on mass-affluent and affluent clients. Minimum investible asset thresholds have made it increasingly difficult for younger Canadians and those without significant savings to access professional financial planning services.

The QAFP is expected to play the same role. What is likely to change are the requirements candidates must meet.

“It’s about making the path as efficient as possible,” Batstone said. “We may have overbuilt a little bit in terms of some of the depth. … We see where organizations want to position this credential. So let’s make sure that the competencies — the breadth and depth — are where they should be.”

Both designations will continue to adhere to the same code of conduct, and Batstone said there will be no changes to the enforcement process available to consumers who lodge legitimate complaints.

But there may be a trade-off. Batstone signalled that FP Canada may accept less rigorous QAFP training if it results in a larger number of designation holders.

“I really want to see more financial planning earlier in a client’s financial life cycle,” she said. “I think the QAFP is a real way to achieve that.”

Two strategic drivers

The QAFP review comes amid two realities.

First, more than 17,000 CFP professionals in Canada represent a larger market share than the designation enjoys in any other country. The Financial Planning Standards Board administers the designation in more than 25 countries and territories. While the U.S. has about 100,000 CFP professionals — nearly half the global total — Canada has one of the highest penetration rates.

Canada has about 40 to 45 CFP professionals per 100,000 people. Only Hong Kong has a higher penetration rate, with more than 50, according to the standards organization.

Given its success with the CFP designation, it makes sense that FP Canada would focus on QAFP as a growth opportunity. Batstone’s plan is to expand financial planning in the mid-market, rather than focusing solely on increasing the number of CFP professionals serving wealthy Canadians.

“Absolutely a fair characterization,” she said.

That leads to the second strategic driver: getting more Canadians in front of credentialed financial planners.

FP Canada is lobbying Ottawa for a financial planning tax credit that would allow low- and middle-income households to claim fees for the development and implementation of a comprehensive financial plan. Part of that effort is demonstrating to policymakers that steps are being taken to increase the number of planners able to serve the mid-market.

“If we are going to propose a tax credit for financial planning, and it is geared towards low- to middle-income Canadians, we have a responsibility to make sure that there are individuals who are going to be able to deliver on that work,” Batstone said.

She does not anticipate any change in pricing for those seeking the QAFP. A relaunch is expected within the next six to 12 months.