Core Curriculum Chapter 17

Question 1

REGULATION OF FINANCIAL PLANNING -Is financial planning regulated in Canada?

Answer 1

No, except in Quebec, where certification is required. Other provinces, like Ontario and Saskatchewan, are considering regulation.

Question 2

FP CANADA CODE OF ETHICS - What is the purpose of the FP Canada Code of Ethics?

Answer 2

It sets 8 principles to guide financial planners in ethical decision-making and client interactions.

Question 3

SECURITIES LAW - When does a financial planner need a securities license?

Answer 3

If they recommend specific securities or earn revenue from investment product sales.

Question 4

INSURANCE REGULATION - When is an insurance license required for financial planners?

Answer 4

If they sell, recommend, or earn commissions on insurance products.

Question 5

PRIVACY AND CONFIDENTIALITY -How should a planner handle client privacy?

Answer 5

Maintain confidential records, avoid unauthorized disclosures, and follow FP Canada’s confidentiality standards.

Question 6

CONTINUING EDUCATION - How many CE credits are required for CFP professionals?

Answer 6

25 CE credits annually, including 2 hours on professional responsibility.

Question 7

ERRORS & OMISSIONS INSURANCE -Why is E&O insurance important for financial planners?

Answer 7

It protects them from client claims related to professional mistakes or negligence.