FP Canada Standards Council™ Annual Report Highlights 2018 Enforcement Activity

TORONTO, May 24, 2019 /CNW/ - The FP Canada Standards Council, a division of FP Canada™ (formerly Financial Planning Standards Council, or FPSC), has published its 2018 Annual Report. The report details the Standards Council's professional oversight role and ongoing work in the public interest by setting and enforcing professional standards for CFP^® professionals and FPSC Level 1^® Certificants in Financial Planning.

The Annual Report includes an overview of the Standards Council's complaint intake and disciplinary activity during 2018. It also offers insights into current areas of focus and trends noted by the Enforcement Department and by the Independent Panels that support the Standards Council.

"The financial planners certified by FP Canada are held to rigorous professional and ethical standards, including an obligation to place their clients' interests first and disclose and mitigate conflicts of interest in their clients' favour," says Damienne Lebrun-Reid, Executive Director of the FP Canada Standards Council. "The Standards Council vigilantly enforces these standards with the support of the Standards Panel, the Conduct Review Panel and the Hearing Panel Roster, so that consumers can have confidence in knowing that FP Canada certificants are accountable for their conduct and financial planning advice."

Enforcement Highlights

In recent years, the Standards Council has taken steps to raise awareness of the process for submitting a concern about the actions of an FP Canada certificant. As a result, the number of public complaints received by the Standards Council increased by 31% in 2018 as compared to 2017. The top categories of complaints in 2018 included: client service failure; suitability; integrity; and financial planning advice.

All complaints are subject to an initial assessment to determine if the allegations, if shown to be true, demonstrate a potential violation of the FP Canada Standards Council Standards of Professional Responsibility. If the Conduct Review Panel (CRP) determines that a possible breach of the Standards of Professional Responsibility exists, it may refer the complaint to a Disciplinary Hearing Panel. In 2018, Disciplinary Hearing Panels issued suspensions in 50% of the decided matters and 17% resulted in an individual being banned from seeking renewal or reinstatement of their certification.  All disciplinary decisions are published on FP Canada's website.

When the CRP has concerns about a certificant's conduct but determines that a remedial approach rather than escalation to a Discipline Hearing Panel is appropriate, the CRP may issue a Letter of Guidance and Advice to the certificant. Such letters are also published on the FP Canada website, on an anonymous basis, to notify the profession and the public of the type of conduct that is concerning to the CRP. In 2018, the CRP issued Guidance and Advice on topics including conflicts of interest, failure to perform due diligence and inaccurate and misleading product recommendations or advice.

The full report can be found here.

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 examinations. The FP Canada Standards Council ensures FP Canada certificants―Certified Financial Planner^® professionals and FPSC Level 1^® Certificants in Financial Planning―meet appropriate standards of competence and professionalism through rigorous requirements of education, examination, experience and ethics. Learn more at FPCanada.ca.

SOURCE FP Canada

For media inquiries, please contact: Megan Harman, FP Canada, [email protected], 416.593.8587, ext. 232 or 1.800.305.9886