Toronto, ON – September 12, 2024 – Guidance relates to withdrawing professional financial planning services, changing firms or employers, and making referrals
The FP Canada Standards Council Conduct Review Panel (CRP) has issued practice guidance for Certified Financial Planner® professionals and Qualified Associate Financial Planner™ professionals when ending a client/planner relationship, changing firms or employers, and when referring a client to another professional. The guidance supports CFP® professionals and QAFP® professionals in understanding their obligations under the FP Canada Standards Council™ Standards of Professional Responsibility, to help ensure clients’ interests are protected when these scenarios arise.
The CRP, which is an independent panel composed of CFP professionals and public members, issued the guidance in response to a recent survey in which CFP professionals and QAFP professionals indicated that more detailed explanation of the professional obligations when withdrawing services and making referrals would be valuable. In addition, the Standards Council has recently received several public complaints relating to these topics.
The guidance outlines different circumstances that could prompt the ending of a planner-client relationship, and the obligations of the professional financial planner in each scenario. This includes confidentiality obligations and a reminder that the duty of confidentiality continues past the end of the client engagement.
The guidance also outlines key obligations associated with referrals to other professionals, including rules related to conflicts of interest, referral fees, and others.
“Over the course of a professional financial planner’s career, it is common to have some turnover in the clients they serve, due to switching firms and other factors. It is also common for financial planners to refer clients to other professionals for advice in relevant areas,” says Jeff Cormier, CFP, Chair, Conduct Review Panel. “It is important for CFP professionals and QAFP professionals to thoroughly understand and adhere to all of their professional obligations when navigating these scenarios.”
Read the full guidance on the FP Canada website.
About FP Canada
Established in 1995, FP Canada is a national not-for-profit education, certification and professional oversight organization working in the public interest. FP Canada is dedicated to championing better financial wellness for all Canadians by leading the advancement of professional financial planning in Canada.
About the FP Canada Standards Council
A division of FP Canada, the FP Canada Standards Council establishes and enforces financial planning standards, sets the certification requirements for professional financial planners and develops and delivers certification exams. The FP Canada Standards Council ensures that professionals certified by FP Canada ― Certified Financial Planner professionals and Qualified Associate Financial Planner professionals ― meet appropriate standards of competence and professionalism through requirements of education, exam, experience, and ethics.
Media inquiries contact
Megan Harman
FP Canada
megan.harman@fpcanada.ca
