Q. Now that I have paid back my Home buyer’s plan, one of my goals is to get more organized when it comes to my finances. I’m thinking of working with an advisor and was wondering about the differences between a financial advisor and certified financial planner?
Tara, Richmond
A. While it seems that almost anyone can call themselves a financial advisor, a Certified Financial Planner must have completed all the educational requirements, passed the comprehensive final exam and must subscribe and adhere to the code of ethics and professional practice standards.
As part of this commitment to professionalism, they are obliged to place the client’s best interest first and must disclose relevant information that might affect the financial planning relationship. These could include any potential conflicts of interest and the disclosure of types of compensation that they receive, including fees and/or commissions.
You should also ask about their experience, what services they offer, the type of client that they usually work with, specifically how they are compensated and what they typically charge.
Also ask for a written letter of engagement that details the services provided.
More information about the Certified Financial Planner (CFP) designation can be found through the Financial Planner’s Standards Council at www.cfp-ca.org.
This article provides general information and does not constitute financial or other professional advice. Seek independent advice before implementing any of the strategies discussed.
Imran Syed, BA CFP CFSB TEP is an independent, Fee Only Certified Financial Planner and can be reached at www.feebasedadvisor.ca. Please send any home related, financial planning questions to him by email at homes@ottawacitizen.com
