FPSB issues first Guidance Practice Note to support financial planners

Financial Planning Standards Board Issues First Guidance Practice Note to Support Financial Planners Working with Vulnerable Clients

Guidance Practice Note

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DENVER, CO – 26 NOVEMBER 2019 – Financial Planning Standards Board Ltd. (FPSB), owner of the international CERTIFIED FINANCIAL PLANNER certification program outside the United States, today issued its first Guidance Practice Note to support financial planning professionals develop policies and work with vulnerable clients in a way that fulfils their ethical and professional obligations to these clients.

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In response to increased regulatory concern about the financial exploitation of vulnerable populations, and the G20 Global Partnership for Financial Inclusion’s call for lifetime financial planning to support the financial inclusion of aging populations, Financial Planning Standards Board has provided guidance to encourage financial planning professionals working with vulnerable clients exercise an appropriate level of care, applied consistently through a documented policy, to these clients.

Financial Planning Standards Board statement

"All adults have the fundamental right to make their own financial decisions, and vulnerable persons have a right to be protected against financial abuse, even when the vulnerability is temporary," said FPSB CEO Noel Maye. "This Guidance Practice Note is part of the global CERTIFIED FINANCIAL PLANNER professional community’s commitment to supporting financial inclusion and access to financial planning from competent, ethical financial planners who put their client’s interests first."

FPSB’s Guidance Practice Note provides general and practical, principles-based guidance for financial planning professionals developing a policy for how they will work with vulnerable clients, based on best practices and the current understanding of the collective issues related to financial exploitation of vulnerable individuals.

FPSB’s Guidance Practice Note is intended to supplement, rather than supplant, existing territorial laws and regulations regarding the provision of financial advice/financial planning; discrimination against individuals regarding race, religion, sexual orientation or other factors; or the violation of client confidentiality. FPSB Guidance Notes are not intended to promulgate standards or replace governmental or regulatory obligations in a particular territory and should not be construed or relied upon as compliance, regulatory or legal advice.

Read Financial Planning Standards Board’s June 2017 submission on senior investor vulnerability to the International Organization of Securities Commissions (IOSCO) Committee 8 on Retail Investors for a sample of its other contributions to the issue of consumer vulnerability.

 



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Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver