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Financial Planning Standards Board (FPSB), the owner of the international CFP certification program, has updated its global financial planning standards in which it has introduced a host of new concepts to make financial planning standards in line with the evolving needs of investors.
Among other things, the board has introduced a new domain to build expertise in understanding investor psychology. This will help CFP professionals identify and respond to investor’ attitude and behaviour that impact their decision making.
Here are the key updates to the global standards
- 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
In a press release, Dante De Gori, CEO, FPSB said, “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 in the benefits of financial planning among consumers and regulators."
The revised global standards come under the framework of knowing, doing and being. They 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 published and shared the revised standards with its affiliate organizations in April 2023 for adopting the standards by January 1, 2025.
