FP Canada to publish interim decisions of disciplinary proceedings

FP Canada will publish certain information related to disciplinary proceedings and has updated its guidelines for the disclosure of investigations and interim suspensions.

The changes are part of revisions to the FP Canada Standards Council Disciplinary Rules and Procedures and the FP Canada Standards Council Disciplinary Rules and Procedures for Examination Misconduct, with the aim of improving transparency and fairness, the certification body said in a release on Tuesday.

These publications outline how the FP Canada Standards Council conducts investigations and hearings regarding, respectively, the conduct of certified financial planners (CFPs) and qualified associate financial planners (QAFPs), and alleged misconduct on FP Canada certification exams.

Among the changes to the disciplinary rules for CFP/QAFP conduct is that substantive motion decisions — those made on interim steps in a disciplinary proceeding — will now be published on the FP Canada website (and in other publications as deemed appropriate), within 10 business days of the decision.

The change provides transparency to CFPs and QAFPs, the release said, as well as other regulators and the public, and provides “helpful precedential materials to those involved with the process, which enhances fairness.”

Another key change involves who decides whether to disclose an ongoing investigation or suspend certification of a CFP/QAFP pending the outcome of an ongoing investigation and any related disciplinary proceeding. Such decisions will now be the responsibility of a disciplinary hearing panel instead of the board of directors, as was previously the case.

Further, these hearing panel decisions will be published on the FP Canada website (and in other publications as deemed appropriate).

Such cases of disclosure or suspension comprise “exceptional” circumstances, as described in the disciplinary rules and procedures, such as when the public interest is at risk.

The changes to the disciplinary rules and procedures have been mirrored in the rules and procedures for exam misconduct where appropriate and to ensure consistency, the release said.

The updates come as Ontario awaits ministerial approval of rules to regulate the titles of “financial planner” and “financial advisor.” As part of that regime, the Financial Services Regulatory Authority of Ontario requires approved credentialing bodies for the titles to summarize their approaches to investigations and enforcement.

In 2020, FP Canada began publishing statements of allegations, which describe misconduct alleged by the Standards Council, on its website, as well as decisions and reasons from disciplinary hearings, and summaries of disciplinary decisions regarding certification exams.

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