The international body managing standards of the certified financial planner is looking to implement a future regime based on competency skills.
In a video interview with Nick Cann of the Institute for Financial Planning, Noel Maye, ceo of the Financial Planning Standards Board – the body which sets the international standards CFP affiliates and members must meet – says the committee is looking at creating greater standardisation of the global CFP programme and defining the competencies of financial planning, so certificate holders can move across borders and only need a country-specific ‘top-up’.
“We’re really looking to move away from a knowledge-base to a competency base so there will be this consistent level of activity on the part of the CFP professional, wherever in the world,” says Maye.
“The idea will be that somebody could be qualified as a CFP professional in the United Kingdom could go to Hong Kong or Australia or any other country where we have a programme and just take a country-specific top-up programme to get CFP certification in that country as well. I think that will be a very exciting development for financial planning globally,” he adds.
He notes, for example, the FPSB now has affiliates in China, and is currently working to develop additional CFP programmes in Brazil, India and the Netherlands.
A spokesperson for the IFP says competency issues are a long-term objective for the FPSB, so little is unlikely to change in the short-term away from a mix of knowledge and competency requirements but the IFP will look, at some point, at the top-up criteria the UK will apply to the international uniformity achieved by the FPSB.
Furthermore, speaking specifically about the IFP’s recent link-up with Manchester Metropolitan University to offer a CFP programme, Maye also suggests it is possible to expand the concept across other academic institutions, as the US did when its CFP Board created the first university-linked programme.
“In 1985, there was one educational institution offering [the CFP] programme, and now there are over 330 programmes at certificate level, degree and masters. We would perhaps not anticipate that number in the UK but this is a start and we would expect to see a lot of other universities interested in helping their students move to a professional career in financial planning,” continues Maye.
To hear more, click on the attached web link to watch the three-minute video interview.IFAonline
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation