Taipei - At its inaugural World Financial Planning Summit, Financial Planning Standards Board Ltd. (FPSB) invited regulators, educators, and representatives of financial services firms and the global community of financial planning practitioners to help FPSB develop recommendations to establish financial planning as a recognized professional practice worldwide.

Corinna Dieters, FPSB Board chairperson, challenged event attendees and online viewers to raise the bar on standards, education, regulation, the practice and delivery of financial planning, and consumer advocacy.

Ian Johnston, deputy chief executive of the Dubai Financial Services Authority, explained that, following the global financial crisis, regulators around the world are focusing on compensation, disclosure, and client-centered approaches to financial advice. He wondered if financial planners were ready to partner with regulators by stepping up to the challenge of leading the shift toward behavior and advice that places clients’ interests first.

Wessel Oosthuizen, CFP, director of the Centre for Financial Planning Law at the University of the Free State in South Africa challenged financial planning leaders to support the formation of a global financial planning body of knowledge with sustainable career-path development opportunities. He said that for financial planning to be recognized as a distinct professional practice and a global profession, the financial planning community must establish a universal body of knowledge that is supported by applicable research.

Gautam Chikermane, executive editor (business) at the Hindustan Times in India said financial planners should end hidden costs embedded in the sales of financial products, be more transparent in discussing their fees, and that consumer interest must be a priority before financial planning can be recognized as a profession.

World Financial Planning Summit Recommendations

Attendees at FPSB’s World Financial Planning Summit discussed how best to develop the roadmap for financial planning’s emergence as a recognized profession, similar to established professions like medicine, law, or accounting, through small- and large-group discussions on the topics of regulation, delivery channels, building the body of knowledge for financial planning, and consumer advocacy.

FPSB tasked several breakout groups with creating high-level recommendations that FPSB’s Board of Directors could consider for incorporation into FPSB’s strategy and programs going forward.

Regulation and Oversight

1. The oversight of financial planning should involve cooperation among governments/regulators and professional bodies.
2. Consistent with established professions, professional bodies should have responsibility for developing the competency, ethics and practice standards for the financial planning profession.
3. FPSB should engage regulators at a global level and take consumer-centric positions on issues such as fiduciary standard, remuneration, etc.
4. FPSB should consider the benefit for consumers and the profession of encouraging protection by governments and regulators of the term “financial planner.”
5. While consumers are responsible for the input and regulators the output of the financial advice and product delivery system, the profession should be responsible for defining, developing and enforcing standards relating to the process and delivery of financial planning.

Body of Knowledge and Career Path

1. FPSB should provide universities with research grants, endowed chairs and funding to encourage academics to research financial planning theory and practice.
2. FPSB should create a global conference/summit and academic journal (or help to upgrade existing journals) to engage academics and researchers in developing and growing the body of knowledge.
3. FPSB should design a global curriculum, with textbooks and course outlines, to guide educators on teaching the “soft” skills of financial planning.
4. FPSB should work with product providers and large institutions to have them embrace the financial planning process and enhance marketplace credibility.
5. FPSB should work with education providers and financial services firms to connect to students and new entrants to the financial planning profiession, providing opportunities and generating enthusiasm for careers in financial planning.

Consumer Interests

1. FPSB should appoint a public member to its Board of Directors, as should each FPSB Member organization.
2. FPSB should create a staff position to ensure that consumer interests are represented in all standards-setting, policy and related matters (similar to an ombudsman role).
3. FPSB should proactively provide financial literacy programs and encourage pro bono educational outreach by CFP professionals.
4. FPSB should engage in activities to define, measure and promote the value of financial planning to consumers.
5. FPSB should help consumers understand that CFP professionals meet rigorous financial planning competency, ethics and practice standards.

Practice and Delivery of Financial Planning

1. FPSB should encourage firms to build the financial planning process into product delivery so consumers receive more appropriate advice and products. 
2. FPSB should consider developing a global program to recognize firms that support CFP certification and the use of the financial planning process.
3. FPSB should create marketing materials to promote the value of CFP certification and the financial planning process to firms, and their contribution to client relations, compliance and the bottom line. 
4. FPSB should promote a consistent fiduciary-like standard of care to raise the quality of financial advice and products delivered to consumers.
5. FPSB should consider whether globally consistent pathway credentials would benefit those entering the financial planning profession, along with more practical training in how best to deliver financial planning.

Icelandic Volcano Disrupts FPSB Meeting Attendance, But Not Momentum

European Forum Meeting Postponed

Delegates from Germany, France, the Netherlands, Ireland and the United Kingdom were unable to attend FPSB’s European Forum meeting, FPSB Council meeting or World Financial Planning Summit due to flight cancellations caused by volcanic ash from the 14 April Icelandic volcano eruption.

In a news release issued on 19 April, IFP CEO Nick Cann told reporters, “Sadly, President Barry Horner, CFPCM, and I are not able to attend the summit as planned but at least we will be able to see what goes on via the summit website WorldFPSummit.org.”

FPSB Board of Directors members Steve Helmich and Jane Wheeler, CFPCM, were also unable to attend the Taipei meetings due to the flight cancellations in Europe.

Chief Executives Forum Meeting

With Chief Executives Forum chairperson Nick Cann grounded in the UK, IFPHK CEO Angeline Chin led the session. CEO leaders from 17 territories discussed business development, stakeholder engagement, and the impact of marketplace trends on certification and financial planning around the world.

Deen Sanders of FPA Australia reported on outreach efforts to Australian universities and a proposed education panel, and FPSC CEO Cary List outlined early results of a longitudinal study in Canada aimed at measuring the value of advice to consumers.

FPSB staff also presented some fresh ideas for connecting with stakeholders.

Volunteer Leaders Forum Meeting

FPSB Council Chairperson Karen Schaeffer, CFP®, led members of the Volunteer Leaders Forum in discussions about governance best practices. The group focused on compliance and reporting issues, including constitution and governance, board composition and orientation, board self-evaluation, stakeholder reporting, and risk management programs.

Volunteers from 11 FPSB Member organizations reviewed a library of compliance and governance documents that will be included in the governance chapter of FPSB’s Program Management Manual, available online in the FPSB Member Forum.

Asia-Pacific Forum Meeting

Sources of employment for CFP professionals in the region and financial literacy programs dominated the Asia-Pacific Forum discussions. Leaders from 12 FPSB Member organizations in the Asia-Pacific region joined in the discussions.

Chan Chow Hun, chief executive for the Financial Planning Association of Malaysia (FPAM), facilitated the discussion on how FPSB could anticipate and support career opportunities for CFP professionals employed in large financial services firms. Michimasa Minami, of the International Operations Section at Japan Association for Financial Planners, presented on JAFP’s financial literacy program for school children.

BC Wong, FPAM chairperson, provided an explanation of how the regulatory environment in Malaysia impacted the delivery and acceptance of financial planning.

Board of Directors Meeting

FPSB’s Board of Directors worked with an external consultant to discuss the operating model and strategies to support the continued growth of FPSB and the CFP certification program. In the process, the Board reaffirmed the mission and vision of FPSB, and its commitment to establishing financial planning as a global profession, with the CFP marks its symbol of excellence.

FPSB Council Meeting Highlights
The FPSB Council business meeting took on a new, shortened format in April. During the two-hour session, Council delegates elected Debbie Ammeter (Canada), Koji Hayakawa (Japan) and Lyn McMorran (New Zealand) to the nominating committee for the 2011 FPSB Board of Directors. Ammeter, Hayakawa and McMorran will join FPSB Board chairperson Corinna Dieters, FPSB Council chairperson Karen Schaeffer, FPSB Board member Peeyush Gupta and FPSB CEO Noel Maye to review candidate qualifications and submit appropriate nominees for approval by FPSB’s Board of Directors this October.

The Council approved meeting locations through 2013 (see below) and received an update from FPSB’s Board of Directors and Audit Committee on first-quarter activities. In addition, Wessel Oosthuizen provided an update on the status of several working groups formed in 2010 to develop tools and programs to implement FPSB’s global financial planning standards. In a global promotion update, FPSB’s communications department presented a concept for an iPhone application that would enable consumers to locate CFP professionals anywhere in the world. CFP professionals would need to opt in to be listed, and would need to submit contact information and the expiration date of their CFP certification. FPSB agreed to refine the concept based on input from FPSB Members for further discussion.

Finally, the Council received a draft position paper on regulation. FPSB CEO Noel Maye asked council members to provide comments on the document to FPSB. The document will be finalized by mid year.

Excerpt from VOL. 3, ISSUE 1 FPSB.ORG. APRIL 2010