Global Financial Planning body revamps standards

The FPSB, the provider of the Certified Financial Planner designation outside the USA, is adding new sections to its standards covering areas such as the ‘psychology’ of Financial Planning, coaching and wellbeing.

Among the key changes are:

• A new ‘knowledge domain’ on the psychology of Financial Planning
• New technical content on crypto finance and evolving investment strategies
• More emphasis on the human skills associated with Financial Planning
• A set of practice guidelines to show how FPSB’s Global Financial Planning Standards relate to each other and can be applied in a ‘real-world’ client setting

The revised standards follow a comprehensive review by the FPSB with input from 16,000 CFP professionals worldwide to “ensure the standards remain relevant and reflect the changing needs and expectations of consumers.”

The new standards take into account the evolution in the practice of Financial Planning by professionals, the FPSB says.

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The updated global standards are organised under the framework of ‘Knowing | Doing | Being’ and cover the body of knowledge (Knowing); Financial Planning process, core practices, practice standards, abilities and professional skills (Doing); and Financial Planner code of ethics and professional responsibility (Being).  

FPSB’s Affiliate organisations, including the CISI in the UK, are expected to  adopt the standards by 1 January 2025.

FPSB CEO Dante De Gori CFP said: “FPSB is committed to upholding worldwide professional standards in Financial Planning by continually reviewing and updating its global standards to reflect evolving client needs.

“Global standards support increased consumer protection when accessing Financial Planners who have committed to rigorous standards of competency and ethics; help practitioners distinguish themselves within the Financial Planning community and instil confidence of the benefits of Financial Planning among consumers and regulators.”

The updated standards have been produced following the FPSB’s research findings on the current and future practice of Financial Planning, with feedback from CFP professionals worldwide.

The FPSB said the research showed an increasing trend in the sophistication and importance of collaboration between Financial Planners and clients, and the need for Financial Planners to enhance client relationship skills, including coaching and effective communication.

The FPSB said the updated standards reflect the increased importance of Financial Planning professionals identifying and responding to attitudes, behaviours and situations that impact decision-making, the client-planner relationship and client financial well-being.

Mr De Gori added: “With evolving client demographics, changing economic, political and regulatory environments and innovation such as fintech, we’re seeing a shift in client expectations and how Financial Planners work with clients.”

The updates are the result of a multi-year process led by the FPSB’s Professional Standards Committee in consultation with its working groups.

There are more than 213,000 CFP professionals in 27 territories around the world including just under 1,000 in the UK.

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