In an effort to make acting in the best interest of clients a routine practice, Canada’s Financial Planning Standards Council is overhauling its code of ethics.
According to The Windsor Star, the code is positioned to be announced within the next month, and proponents of the change hope it generates consequences for financial planners who fail to meet their client’s interests. FPSC participates in licensing planners, but the organization has limited ability to enforce rules and regulations.
“The FPSC and some other designations have worked toward trying to increase standards and increase the professionalism of financial planning, but it’s difficult because there’s no statutory basis for it,” said Marian Passmore, associate director of the Foundation for Advancement of Investor Rights, as reported by the news source.
Before hiring a financial planner, the FPSC suggests asking for credentials, a summary of their experience and more information about their company and its products. The council also says it’s important for people to get everything in writing before starting a relationship a planner.
The FPSC says there are currently between 50,000 and 60,000 financial advisors in Canada, but only 17,500 are certified by the council.