The FP Canada Standards Council has added two rules related to financial planners’ use of technology to the organization’s Standards of Professional Responsibility.
Certified financial planners (CFPs) and qualified associate financial planners (QAFPs) who use technology as part of the financial planning process are now explicitly required to gain a general understanding of the methodologies underlying tech tools that have a direct impact on financial planning projections and recommendations.
“CFP professionals and QAFP professionals use technology throughout their practice and to support interaction with clients,” Julie Seberras, senior manager, wealth planning support with TD Wealth and a member of the standards council’s technology working group, said in a statement. “The rules reflect this reality and set clear expectations around financial planners using and relying on technology.”
Planners must understand the financial assumptions underlying the technology and validate that the data generated by tech tools is reasonable and appropriate for clients before making a recommendation. Planners must also document and communicate to clients the material assumptions used by the technology, as well as the rationale for any recommendations.
The FP Canada Standards Council establishes and enforces financial planning standards, sets certification requirements, and ensures that certificants meet standards of competence and professionalism.