Financial Planning Standards Board Updates Global Standards

The Financial Planning Standards Board Ltd. has updated global financial planning standards to reflect the growing importance of collaboration between financial planners and clients.

The updates to the global standards come following a multi-year process led by FPSB’s Professional Standards Committee. Updates were also informed by FPSB’s research findings on the current and future practice of financial planning, with input from more than 16,000 CFP professionals worldwide.

“FPSB is committed to upholding worldwide professional standards in financial planning by continually reviewing and updating its global standards to reflect evolving client needs,” said FPSB CEO Dante De Gori in a statement. “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 instill confidence of the benefits of financial planning among consumers and regulators.”

The FPSB is the owner of the international Certified Financial Planner certification program outside the United States. FPSB’s Global Financial Planning Standards set standards for the competent practice of financial planning.

Key updates to the global standards include:

• Addition of a new knowledge domain of the psychology of financial planning;
• New technical content on crypto-finance and evolving investment strategies;
• Greater emphasis on the human skills associated with financial planning; and
• 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.

The updated standards point to the increased importance of fostering the client-planner relationship. Financial planners are expected to enhance their client relationship by improving coaching and communication skills.

“With evolving client demographics, changing economic, political and regulatory environments and innovation such as fintech, we’re seeing a shift in client expectations and how financial planners work with clients,” said De Gori in the statement. “As consumer needs and expectations evolve, applying consistent global standards improves the quality of financial planning advice, benefits consumers and financial planning professionals, and strengthens the financial planning profession.”

FPSB’s updated standards were published and shared with its global network of organizations in April of 2023. Affiliate organizations will adopt the standards for use in their respective territories by January 1, 2025.