13 December 2018 11:30
Photo : Freepik
The Financial Planning Standards Council (FPSC) has announced that its working group on standards has approved the revisions to the standards of professional responsibility applicable to financial planners (CFP). The revised standards include the introduction of a “duty of loyalty” in the code of ethics, which replaces the principle existing of ” customer first “.
According to the FPSC, ” the duty of loyalty reinforces the obligation imposed on professional PSC and certified level 1 to the FPSC to put the interests of the customer first, by including specific obligations, including the obligation to act with honesty, integrity, competence and diligence ; and disclose and mitigate conflicts of interest in favour of the client ; and act with care, competence and due care a professional is advised. “
The revised standards will come into force on January 1, 2019. The standards of professional responsibility include the code of ethics, rules of conduct, standards of skills and practice standards in financial planning.
Prohibition to lend to customers
Other changes, such as the prohibition to lend to customers, to borrow from clients, new obligations to customers and potential amendments to the disclosure requirements on the compensation, intended in particular to ensure that the financial planners are certified by the FPSC are required to adhere to high professional standards required by the public, says the FPSC.
“The standards of professional responsibility establish the framework for the profession of financial planning in Canada,” said Susan Howe, PSC, chair of the standards committee of the FPSC. It is important that these standards remain current and relevant over time. The recent changes to the standards will help to further strengthen the confidence of Canadians in the financial planners professionals and to clarify the expectations of the planners, financial professionals. “