Toronto (March 19, 2002) The Canadian Association of
Insurance and Financial Advisors (CAIFA) and the Canadian Association of Financial
Planners (CAFP) today released a discussion document to their respective membership groups
that proposes the formation of a new single professional organization, the Canadian
Association of Financial Planners and Advisors (CAFPA).
CAFPA will be a professional association representing the
interests of financial planners and financial advisors. It will combine the best
attributes of CAFP and CAIFA while eliminating duplicate organizational costs and reducing
consumer and industry confusion.
CAIFA chair, Lee Raine, noted that “the formation of
CAFPA will benefit both CAFP and CAIFA members. Each organization has unique programs that
will benefit the members of the other organization. CAFPA is the vehicle to bring those
Cheryl Bauer Hyde, CAFP chair, said, “CAFPA members
will quickly establish themselves at the pinnacle of the financial services industry. Our
branding programs will educate consumers on the value of relying upon a CAFPA member for
sound financial advice and guidance.”
CAFPA Planners will be required to actively use the
six-step financial planning process when providing financial planning advice to their
clients. In addition, CAFPA Planners must abide by a stringent Code of Ethics, adopt
Practice Standards, carry errors and omission insurance, and be subject to periodic peer review.
CAFPA Advisors will be regulated, abide by the Code of
Ethics, and carry errors and omissions insurance. Both Planners and Advisors must acquire
30 hours of continuing education annually.
Having a professional designation will be a CAFPA
membership requirement. CAFPA Planners must have the Certified Financial Planner (CFP),
the Chartered Life Underwriter (CLU), or the Pl. Fin. designation. All CAFPA Advisors must
be authorized to use the CFP, the Pl. Fin., or the CLU designation within seven years of
joining CAFPA. (The discussion document outlines some limited exemptions to these designation rules.)
The Canadian Association of Financial Planners is the
membership organization for Canada’s practicing financial planning professionals. Its
3,300 members have the ethics, the education, the experience, and the expertise to help
Canadians make the best financial decisions.
The Canadian Association of Insurance and Financial
Advisors (CAIFA) is a voluntary, not-for-profit professional association whose 15,000
members, gathered in 50 chapters, are represented in most major cities and towns across
the country. CAIFA members provide financial advice, and market and sell financial
products to over nine million Canadians.