Until the 1970′s, Canadians looking for financial advice, would consult with their lawyers, accountants, bankers, insurance representatives or investment brokers. Then, there was no profession referred to as financial planning.
However, society grew more complex in the 1970′s. Canadians had to deal with increases to corporate and personal taxes, the oil embargo, high levels of unemployment and the occurrence of a new economic phenomenon, stagflation – a combination of high inflation and a stagnant economy (recession). For the first time, no one field was equipped to deal with all of these economic factors. Financial planning emerged as a distinct profession to deal with the complexities of a new economy.
At first, anyone could call themselves a financial planner and there were no standards for education, proficiency, or ethics. As the profession evolved, education and training became available, standards developed, and regulating bodies formed, most notably, the Financial Planners Standards Council, whose mandate is to “develop, enforce and promote the highest competency and ethical standards in financial planning as defined by CERTIFIED FINANCIAL PLANNER® (CFP®) professionals.”
