Your search for a qualified financial planning professional and unbiased financial planning information can be confusing. Below are definitions of acronyms and designations you frequently see or hear about.
To be sure a financial planning practitioner has earned the Certified Financial Planner® (CFP®) credential offered by Financial Planners Standards Council (FPSC), go to CFP Professionals in Good Standing.
Acronyms
(CDIC) Canada Deposit Insurance Corporation
A corporation set up by the government to protect investments and deposits in financial institutions.
(CPI) Consumer Price Index: A statistical device that measures the increase in the cost of living for consumers. It is used sometimes to illustrate the extent that prices in general have risen or the amount of inflation that has taken place.
(CPP): Canada Pension Plan A federally run program designed to provide monthly pensions to contributors (except in Quebec which has its own plan) in retirement, to disabled contributors and their children, and to the widows, widowers, and orphaned children of deceased contributors.
(CSC) Canadian Securities Course
An educational program offered by the Canadian Securities Institute (CSI). An individual often requires this course program for a position in the financial services industry. It covers fixed income securities, equities, mutual funds,
derivatives, etc.
(DJIA) Dow Jones Industrial Average:
Often known as "the Dow," this average is one of the most frequently quoted market indexes in the news. It refers to a weighted average of 30 widely traded blue chip
stocks (such as IBM and Coca-Cola). The closing prices of these 30 stocks are added and then divided by a factor that accounts for stock splits and other market changes. (The number refers to points, not dollars.) Because these stocks are in a variety of sectors and are actively traded, they are considered a good reflection of the market.
(GIC) Guaranteed Investment Certificates:
A deposit certificate usually issued by a trust company or other financial institution and covering a specific period. It is an interest-paying investment in which the investor commits for a specified term for a specified rate of interest, usually anywhere from one to five years.
(GIS) Guaranteed Income Supplement: An income tested pension for Old Age Security (OAS) recipients with relatively insignificant income, other than the OAS.
(IDA) Investment Dealers Association: The Investment Dealers Association of Canada, the national self-regulatory organization and representative for the Canadian securities industry, represents more than 190 Member firms across the country.
(IMF) International Monetary Fund:
An agency of the United Nations, established in 1944 along with the World Bank to promote post-war economic recovery, development and trade -- principally by helping
to ensure a stable system of international exchange. The IMF has evolved since its inception, but remains focused on overseeing the international monetary system, including balance of payments stability (e.g., the resolution of debt problems) and encouraging member governments to implement appropriate macro-economic and structural policies.
Investment Tax Credit:
A tax credit available for investments in scientific research and experimental
development and in certain regions.
Labour Force:
The number of people in the country 15 years of age or over who either have a job or are actively looking for one. The labour market is the market that determines wages and the number of jobs based on the supply and demand for workers.
(LIF) Life Income Fund:
A non-annuity investment vehicle created specifically to access locked-in RRSP and pension plan savings to provide retirement income.
(LSVCCs) Labour-Sponsored Venture Capital Corporations:
Funds set up by labour organizations in which individuals pool their money to invest
in small businesses. Individuals who purchase national LSVCC shares receive a 20 per cent federal tax credit based on the cost of acquiring these shares. These shares may also be contributed to an RRSP.
(MER) Management Expense Ratio:
A measure of the total costs of operating a mutual fund as a percentage of average total assets.
(MFDA) Mutual Fund Dealers Association:
The MFDA is the mutual fund industry’s self-regulatory organization (“SRO”) for the distribution side of the industry. It is responsible for regulating all sales of mutual funds by its Members in Canada. The MFDA does not regulate the funds or fund manufacturers. This responsibility has remained with the securities commissions.
(NASDAQ) National Association of Securities Dealers Automated Quotations:
One of the three major stock exchanges in the United States. (The New York Stock Exchange and the American Stock Exchange are the other two.) New companies entering the stock market with an IPO frequently start on the NASDAQ market.
(OAS) Old Age Security:
A pension payable to all persons age 65 of older, who meet both the income need and residency requirement in Canada.
(OSFI) Office of the Superintendent of Financial Institutions:
The federal agency that regulates financial institutions and employer-employee
pension plans under federal jurisdiction to contribute to public confidence in the Canadian financial system and the protection of the rights and interests of depositors, policyholders and creditors. To meet this goal, OSFI maintains a comprehensive supervisory framework aimed at ensuring that each institution or pension plan is able to meet all obligations as they fall due.
(RESP) Registered Education Savings Plan:
A savings program for post-secondary education that earns tax-sheltered income. It is taxable when taken out by the beneficiary of the plan who is generally in a lower tax bracket, if in a tax bracket at all, at the time of applying the funds for further education.
Designations
(AICB) Associate of the Institute of Canadian Bankers
A designation indicating one who has acquired a core education in general business of banking and relationship skills. This designation is earned upon successful completion of the university-level Business Program for Bankers or the Financial Services Study Program. Completion of this designation can lead to the FICB (Fellow of the Institute of Canadian Bankers).
(CA) Chartered Accountant
The professional designation indicates one who has passed the requirements of his or her provincial institute of chartered accountants, which includes the Uniform Final Exam (UFE). CA's have extensive training in tax and other areas of financial management and must adhere to a code of conduct.
(CDFA) Certified Divorce Financial Analyst
Trained to answer questions and more for men and women in the process of divorce and to provide litigation support for their attorneys, which helps them prove and often settle their case. Offered by the Institute for Divorce Financial Analysts.
(CEBS) Certified Employee Benefit Specialist
A designation awarded by the International Foundation of Employee Benefits Plans to individuals who have successfully completed a 10-course program. Originally an American designation, an individual can now earn this specialty designation in Canada through Dalhousie University. Exams are administered twice a year.
(CFA) Chartered Financial Analyst
One who has passed exams administered by the U.S. based Association for Investment Management and Research. Common holders of this credential are money managers and stock analysts.
(CFP®) Certified Financial Planner®
The internationally recognized credential awarded in Canada by Financial Planners Standards Council (FPSC). CFP professionals must meet the FPSC's standards in education, experience, examination and ethics. CFP professionals must also have 30 hours of continuing education every year and agree to abide by the CFP Code of Ethics to renew their right to use the credential annually.
(CGA) Certified General Accountant
A professional designation granted to individuals who have passed the educational and experience requirements of their provincial association. CGAs have extensive training in accounting, tax and financial management. They are required to adhere to a code of conduct and a mandatory continuing education program.
(CIA) Certified Internal Auditor
Offered by The Institute of Internal Auditors, Internal auditors offer an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. A person with this designation helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
(CBV) Chartered Business Valuator
Offered by the Canadian Institute of Chartered Business Valuators individuals with a CBV have a sound working knowledge in the area of business and securities valuation theory, and the ability to deal with various valuation-related issues generally encountered by professional valuation. Because of the technical nature of the designation most have a basic knowledge of accounting and financial statement analysis, acquired at the equivalent of at least a university undergraduate level. Although not required, possession of an undergraduate or graduate degree in accounting/finance, or a designation such as CA, CGA, CMA, CFA or equivalent is encouraged.
Chartered Financial Planner
One who has earned a general financial planning designation granted by The Canadian Institute of Financial Planning upon completion of an education program. The program was phased out in 1998.
(CFE) Certified Fraud Examiners
Designation granted by The Association of Certified Freud Examiner. The member-professionals earns the designation is required to complete a rigorous qualification process and assist in investigating fraud is various forms. CFEs come from many professional backgrounds including: auditors, accountants, attorneys, criminologists, loss prevention specialists and fraud investigators. Most major corporations and government agencies employ CFEs internationally.
(CH.F.C.) Chartered Financial Consultant
One who has passed advanced courses in financial planning and wealth accumulation granted by The Financial Advisors Association of Canada (Advocis).
(CIM) Canadian Investment Manager
One who deals in portfolio and wealth management. It is a title granted by the Canadian Securities Institute.
(CLU) Chartered Life Underwriter
One who has passed exams given by The Financial Advisors Association of Canada and who has been determined to be a financial planner with advanced knowledge in life
and health insurance and employee benefits.
(CMA) Certified Management Accountant
One who has passed the requirements of his or her provincial society of management accountants. A CMA is a financial management professional who combines accounting and business management skills.
(CMC) Certified Management Consultant
The CMC designation is the profession of management consulting's only globally recognized credential. The skills that a CMC develops in the process of attaining the CMC are applicable in every area of management consulting, everywhere in the world. The designation is conferred on individuals who have met stringent international standards, one of which is a comprehensive exam. The CMC designation demonstrates a consultant's commitment to best practices in management consulting.
(EPC) Elder Planning Counselor: The Elder Planning Counselor designation program was designed by Canadians specifically for Canadian professionals who work with elders, people aged 55 and older. The EPC plays a very important part in dealing with elders in a financial, social, community or health field.
(FCSI) Fellow of the Canadian Securities Institute
A designation awarded by the Canadian Securities Institute (CSI). To obtain the FCSI designation, students need a minimum of five years experience in the financial services industry and complete CSI's FMA™ , CIM®, or DMS™ designations, Conduct
& Practices Handbook Course, the Partners, Directors and Seniors Officers Exam or the Branch Managers Course, one additional course and an ethics case study or seminar.
(FCUIC) Fellow of the Credit Union Institute of Canada
A designation awarded by the Credit Union Institute of Canada (CUIC) to individuals who have completed the nine-course General Business Studies Program and the two years full-time work requirement in the co-operative financial services industry.
(FDS) Financial Divorce Specialist
A financial planner, accountant or any other financial professional with an existing financial designation as a base criteria, who has successfully completed the specialized training in financial issues regarding division of assets, pensions and children's needs through the Academy of Financial Divorce Specialists. An FDS is required to adhere to Practice Standards and the Code of Ethics from the Academy, as well as fulfill additional continuing education requirements to maintain their designation annually.
(FICB) Fellow of the Institute of Canadian Bankers
A designation indicating one who has acquired a graduate-level understanding of the key issues faced by senior managers of financial institutions and is equipped with the skills to manage these units in a globally competitive environment. This designation is earned upon successful completion of the Professional Banking Program.
(FMA) Financial Management Advisor
A designation awarded by the Canadian Securities Institute. The FMA educational stream delivers advanced financial planning skills to service high net worth clients who demand sophisticated strategies and the acumen to direct a team of wealth management professionals. The designation is achieved by successful completion
of the Canadian Securities Course®, the Professional Financial Planning Course™ and Wealth Management Techniques™.
(IA) Investment Advisor
One who is licensed to sell securities by one of the provincial securities, provided he or she passed the Canadian Securities Course.
(IC) Investment Counsellor
One who is licensed by provincial securities commissions to invest and manage money on behalf of institutions and high-net-worth individuals.
(MTI) Member, Trust Institute
A designation granted by the Institute of Canadian Bankers (ICB) to individuals who have extensive knowledge and proven work experience in a trust industry specialty, as well as core knowledge of general business.
(PFP) Personal Financial Planner
A designation granted by the Institute of Canadian Bankers. It is earned upon successful completion of the Personal Financial Planning Program and the Institute's Designation Qualification Process.
(Pl. Fin.) Planificateur financier
In Québec, the financial planning industry is regulated by Bill 188, which states that each financial planner must earn the Pl. Fin. professional designation.
(REBC) Registered Employee Benefits Consultant
One who specializes in helping clients plan for retirement. Awarded by The Financial Advisors Association of Canada (Advocis) to students who have completed course requirements. Those who have earned their CFP credential by completing the new curriculum for CFP certification and the CLU designation must complete three additional courses offered by Advocis to earn the REBC.
(R.F.P.) Registered Financial Planner
Designation awarded annually by the Institute of Advanced Financial Planners (IAFP) to its members who have met and maintained the professional standards as established by the Institute.
(RHU) Registered Health Underwriter
An agent who specializes in disability income and the health insurance business. Individuals have to successfully complete course requirements to be granted this title and designation by The Financial Advisors Association of Canada.
(RPA) Registered Professional Accountant
The Society of Professional Accountants of Canada offers the designation program. It has been recognized for its excellence and its distinctive small business focus on professional accountancy education.
(SFC) Specialist in Financial Counselling
A designation granted by the Institute of Canadian Bankers (ICB) to individuals with knowledge and skills in matching services and products to a client's financial goals. It is earned upon successful completion of the Personal Financial Counselling Program and the Institute's Designation Qualification Process.
(STI) Specialist, Trust Institute
Offered by the Institute of Canadian Bankers this diploma indicates that the person has extensive technical knowledge and some experience in one specific area of specialization.
(TEP) Trust and Estate Practitioner
A designation granted through the Society of Trust and Estate Practitioners (STEP), the professional body for the trust and estate profession worldwide and currently has over 7000 members.
CFP®, CERTIFIED FINANCIAL PLANNER® and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. (FPSB). Financial Planners Standards Council is the marks licensing authority for the CFP marks in Canada, through agreement with FPSB.
are certification marks