A new international body governing Certified Financial Planner certification worldwide is scheduled to begin operations on January 1, 2003. This new entity will eventually take over responsibility for the development, promotion and protection of the CFP marks internationally from the Denver-based Certified Financial Planner Board of Standards Inc.

“In the world of finance today, political and geographic borders are increasingly irrelevant,” says John Carpenter, outgoing chairman of Financial Planners Standards Council and a key member of the task force that recommended the move to broaden the role international affiliates play in the leadership of the International CFP Council. “At the same time investors still need a guide who understands the world beyond those borders; and CFP licensees can fill that role.

“Selecting the right financial planner can be as important as selecting the right doctor. Obviously, not all Canadians understand this yet,” he says. “This kind of research helps us to better educate Canadians about financial planning and how to make prudent choices when seeking professional advice. The more they know, the more discerning they can be in their choice of a financial planner.”

“Advances in technology are providing greater access to more complex investment products in increasingly efficient international markets,” he adds. “To exploit these investment opportunities, consumers around the world need competent and ethical financial advisors. Those financial advisors, in turn, need a global organization to support them.” “The formation of such an international organization will give the CFP designation greater credibility in Canada and will build greater acceptance of the designation by the consumer,” says FPSC president Don Johnston.

“Canadian CFP licensees represent the largest body of financial planning professionals outside the U.S. As the standards setting body for the CFP designation in Canada, we remain committed to building on the world-wide respect for CFP marks, which enhances the professional standing of our licensees here.”

A joint task force of the CFP Board, owners of the CFP trademarks, and the International CFP Council, an advisory body comprising affiliate organizations that award the CFP designation to individuals in their respective countries, proposed the creation of the new organization at the Council’s recent meeting in Tokyo.

In the last decade, the number of planners with CFP certification outside the United States has grown from 76 to 29,000, and the number of affiliates has grown from two to 17. The task force believed that the structure developed in 1990 by CFP Board to handle international demand for the CFP marks needed re-examination.
Ray Griffin, CFP (Australia), was elected as the first international chairman-elect and will become the chair of the International CFP Council in 2003.

Before the new organization can begin operations in 2003, such issues as funding, governance, management structure, staffing, existing license and affiliation agreements, and certification program operations must be resolved by the joint task force.