Financial Planning Standards Board Updates Global Financial Planning Standards to Reflect Evolving Client Needs
DENVER, COLO – 3 April 2023 – Financial Planning Standards Board Ltd. (FPSB), the standards-setting body for the global financial planning profession and owner of the international CERTIFIED FINANCIAL PLANNER certification program outside the United States, has released updated global financial planning standards. The revised standards follow a comprehensive review to ensure the standards remain relevant and reflect the changing needs and expectations of consumers, as well as the evolution in the practice of financial planning by professionals.
FPSB’s Global Financial Planning Standards benefit and protect the public, set standards for the competent practice of financial planning, and advance financial planning as a distinct and noble profession.
“FPSB is committed to upholding worldwide professional standards in financial planning by continually reviewing and updating its global standards to reflect evolving client needs,” said FPSB CEO Dante De Gori, CFP®. “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 instill confidence of the benefits of financial planning among consumers and regulators.”
Key updates to the global standards include:
- Addition of a new knowledge domain of psychology of financial planning
- New technical content on crypto finance and evolving investment strategies
- Greater 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 practically applied in a real-world client setting
The updated standards were informed by FPSB’s research findings on the current and future practice of financial planning, with input from more than 16,000 CFP professionals worldwide, which 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. Additionally, the updated standards reflect the increased importance of financial planning professionals identifying and responding to attitudes, behaviors and situations that impact decision-making, the client-planner relationship and client financial well-being.
“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,” added De Gori. “As consumer needs and expectations evolve, applying consistent global standards improves the quality of financial planning advice, benefits consumers and financial planning professionals, and strengthens the financial planning profession.”
The updates to the global standards are the result of an extensive multi-year process led by FPSB’s Professional Standards Committee in consultation with its working groups, CERTIFIED FINANCIAL PLANNER professionals, academics, certification specialists, and the organizations that administer CFP certification representing more than 213,000 CFP professionals across the world.
The updated global standards are organized under the framework of Knowing | Doing | Being that covers 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 updated standards were published and shared with its global network of organizations in April 2023. FPSB’s Affiliate organizations will adopt the standards for use in their respective territories by 1 January 2025.
About FPSB Ltd.
FPSB manages, develops and operates certification, education and related programs to benefit the global community by establishing, upholding and promoting worldwide professional standards in financial planning. FPSB demonstrates its commitment to excellence with the marks of professional distinction – CFP, CERTIFIED FINANCIAL PLANNER and CFP Logo Mark– which it owns internationally. FPSB and the FPSB global network administer CFP certification and other programs in the following 27 territories: Australia, Austria, Brazil, Canada, Chinese Taipei, Colombia, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Japan, Malaysia, the Netherlands, New Zealand, People’s Republic of China, Peru, Republic of Korea, Singapore, South Africa, Switzerland, Thailand, Turkey, the United Kingdom and the United States. At the end of 2022, there were 213,002 CFP professionals worldwide. For more, visit fpsb.org.
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