Actuaries get easier access to CFP designation

Ambitious actuaries got some good news on Thursday — they’re free to take the CFP exam without enrolling in any additional courses.

The FCIA (Fellow of Canadian Institute of Actuaries) designation now meets requirements for the Financial Planners Standards Council’s Approved Prior Credential policy.

The plan to list actuaries in the FPSC’s APC policy was formulated about a year ago after the CIA broached the subject with Cary List. The FPSC president and CEO’s initial reaction was “Why are they asking this?”

It never occurred to List that the CFP designation would interest actuaries. But after extensive consultations with the CIA, List came to understand why they wanted to become financial planners. “Not only is the financial planning profession changing,” he says, “the whole industry has changed dramatically. Actuaries are caught up in that change as well.”

List notes that since people switch careers more often, actuaries are now called to work on defined contribution arrangements and early retirement exit packages, instead of defined benefit pension plans. This means more actuaries are working one-on-one in an advisory capacity.

With about 2,800 actuaries in Canada, List doesn’t foresee a flood of new CFPs or increased competition in the advisory world. “They’re already logical candidates to extend their professional services,” he says. “I don’t think this is about greater competition. It’s really about greater recognition for the CFP as a genuine and credible professional pursuit.”

List expects that about 10% of the total number of actuaries will write the exam, although it’s still premature to say for sure. “We don’t have a good handle on the demographic of where actuaries are practising or what they’re doing precisely.”

However, not every actuary will qualify to take the exam. Actuaries have to be a fellow of the CIA; they must prove they’ve had some experience in the financial planning world; and then submit a resumé and references, including a letter from a previous employer. “It’s a rigorous process,” says List. “It’s not just a random audit.”

List believes allowing actuaries easier access to the CFP designation isn’t just a way to enhance the financial services industry; it will also allow the FPSC and CIA to work together in other areas. “We’ve acknowledged that we both have a strong interest in the public service mandate,” he says. “So over the years ahead we’ll be working more as partners.”

Filed by Bryan Borzykowski, Advisor.ca, bryan.borzykowski@advisor.rogers.com