FPSC FURTHER DEFINES THE FINANCIAL PLANNING PROFESSION:
New CFP® Professional Competency Profile Now Published
Toronto, December 5, 2006 — A detailed picture of the full array of competencies required of CFP professionals licensed by Financial Planners Standards Council (FPSC) has been published. It is the new CFP Professional Competency Profile (the Profile) available on FPSC's website at www.cfp-ca.org.
This new Profile clearly defines the multi-dimensional and integrative nature of professional financial planning and distinguishes financial planning from other kinds of financial advice and service.
"For our stakeholders, the new CFP Competency Profile articulates the distinctive value proposition of financial planning and of the CFP professional. For FPSC, the new Profile will guide every aspect of CFP certification moving forward," says FPSC Acting President and CEO Cary List CA, CFP.
The CFP Competency Profile is the culmination of a competency-based analysis recently completed as part of FPSC's regular review of the profession. The 2005 analysis represented a new approach — one that looked at what a planner needs to be able to do to serve his or her clients competently, in addition to what he or she needs to know. "Knowledge has generally been the basis for examination and professional certification in the past," says List. "Today, Canadian professions are leading in the movement worldwide to a competency-based approach to certification. FPSC's adoption of a competency-based approach for CFP certification reflects the logical progression of the young yet maturing financial planning profession."
Profile guides CFP Certification Program:
Going forward, the resulting Profile will eventually be reflected in all aspects of the CFP certification program. In the more immediate term, it will be reflected in the new Examination Blueprint that replaces the previous knowledge-based syllabus and guides the development of the CFP Examination and FPSC-accredited education programs. The November 2007 CFP Examination will be the first examination to fully reflect the current CFP Professional Competency Profile.
Serving Various Purposes for Different Stakeholders:
The Competency Profile will help everyone better understand the profession's purpose and value. It distinguishes financial planning from other financial services, and it distinguishes the role and value proposition of the CFP professional from those of other advisors. (See Appendix for further detail on how the Profile serves several purposes for at least seven different stakeholders: CFP credential holders; CFP candidates; education providers; employers; other advisors within the financial services industry; and members of other professions and the public.)
York University Atkinson School of Administrative Studies Tax Professor and Associate Dean Joanne Magee says, "The CFP Professional Competency Profile is very comprehensive and will be a useful tool for educators and students. I am certain that we will refer to it frequently as we prepare students for the financial planning profession."
International Influence:
A competency profile for the financial planning profession is currently being finalized by the international community of CFP certifying organizations from around the world with considerable leadership and contribution from FPSC. In addition to sharing the Canadian CFP Professional Competency Profile to serve as the foundation for the international profile, FPSC's acting president Cary List has been active on the international certification committee charged with developing a common set of international standards for CFP professionals in 20 countries.
"This work rounds out and complements other advancements FPSC has made in defining the profession, the most recent of which was the introduction in 2005 of Practice Standards for CFP professionals," says List. "The CFP Professional Competency Profile will play an integral role in ensuring the ongoing relevance of CFP certification and in advancing financial planning to that of a recognized and valued profession in Canada and worldwide."
About Financial Planners Standards Council (FPSC):
Financial Planners Standards Council (FPSC) is a not-for-profit organization established in 1995 to to lead the development of the financial planning profession. FPSC develops and enforces the highest standards in financial planning competency and ethics for individuals who hold the CFP® (CERTIFIED FINANCIAL PLANNER®) in Canada. There are currently about 17,000 CFP professionals in Canada and more than 100,000 individuals who have earned CFP certification in 20 countries around the world. See www.cfp-ca.org for more information.
FOR MEDIA INTERVIEWS AND FURTHER INFORMATION, CONTACT:
Eileen Chadnick/Chadnick Communications at 416.631.7437 or Eileen@Chadnick.com
Heather Mills/FPSC at 416.593.8587 ext. 235 or hmills@fpsccanada.org
APPENDIX
CFP PROFESSIONAL COMPETENCY PROFILE VALUE PROPOSITION FOR SEVEN DISTINCT STAKEHOLDERS
For all stakeholders, the Competency Profile establishes the distinct set of knowledge, skills and abilities of CFP professionals and the value proposition of financial planning. Specifically, the Competency Profile will serve several purposes for at least seven distinct audiences:
CFP credential holders can use the Competency Profile to validate their skills and abilities, and articulate their value as a CFP professional to their stakeholders.
CFP Examination candidates can use the Competency Profile to understand the scope of competency required for the CFP Examination. Specifically, the Competency Profile is the foundation for the blueprint that sets out what is tested on the CFP Examination.
Education providers can use the Competency Profile to guide the development of financial planning curriculum to ensure their students acquire the knowledge, skills and abilities they will need to be effective, competent and prepared for real-world experience.
Employers can use the Competency Profile to better understand the value proposition of financial planning and the knowledge, skills and abilities that CFP professionals bring to it.
Other advisors in the financial services market can use the Competency Profile to understand the full set of knowledge, skills and abilities required to meet the complex financial planning needs of their clients.
Members of other professions can use the Competency Profile to identify the distinct and complementary set of competencies that CFP professionals can bring to their practice.
The public can use the Competency Profile to better understand the role and value of a CFP professional in helping to meet their life goals.
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.
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