The Financial Planning Standards Board Limited has updated its global financial planning standards to reflect the growing importance of collaboration between financial planners and clients.
Updates to the Global Standards follow a multi-year process led by the FPSB’s Professional Standards Committee. The update was also informed by his FPSB findings on current and future financial planning practices, incorporating input from his over 16,000 CFP professionals worldwide.
FPSB CEO Dante De Gori said in a statement, “FPSB is committed to helping the world in financial planning by continuously reviewing and updating our global standards to reflect the evolving needs of our clients. “The Global Standard supports increased consumer protection when accessing financial planners who are committed to strict standards of competence and ethics. helps us stand out within the financial planning community, and instills confidence in the benefits of financial planning among consumers and regulators.”
FPSB is the owner of an international accredited financial planner certification program outside the United States. The FPSB’s Global Financial Planning Standards set standards for competent financial planning practice.
Key updates to the Global Standard include:
- Addition of a new knowledge area on the psychology of financial planning.
- New technical content on crypto finance and evolving investment strategies.
- Greater emphasis on human skills related to financial planning.and
- A set of practice guidelines that demonstrate how the FPSB’s Global Financial Planning Standards relate to each other and are practically applicable in real-world client settings.
The updated standards show the increasing importance of fostering relationships between clients and planners. Financial planners are expected to strengthen client relationships by improving their coaching and communication skills.
“Changing customer demographics, changes in the economic, political and regulatory environment, and technological innovations such as fintech are changing customer expectations and how financial planners work with them,” De Gori said in a statement. I am.” “As consumer needs and expectations evolve, applying consistent global standards will improve the quality of financial planning advice, benefit consumers and financial planning can be strengthened.”
The FPSB’s updated standards were published in April 2023 and shared with the global network of organizations. Affiliated organizations will adopt the standards for use in their respective regions by January 1, 2025.