Letters to the editor

CONTINUING EDUCATION

I read “A portfolio that adds value” (Personal financial planning, April) with interest. My 20 years’ experience as a financial planner correspond with the findings of Deborah Wetmore in her excellent article. More than ever, people are looking for objective and independent advice in investing and insurance. However the statement, “CAs are the right ones to offer a second opinion” should be “CAs with a financial planning designation are the right ones to offer a second opinion.” While not clear in the article, the CAs quoted, Tim Coakwell and Karen Slezak, have the CFP designation.

Unless programs have changed since my days of studying, CAs do not get training in investment, insurance or retirement issues en route to the CA designation. CAs must obtain the appropriate training before offering credible services in these areas. I did not realize how much there was to know about financial planning that was not part of my CA training until I took financial planning courses. As CAs, we expect clients to accept no less than a professional accounting designation for the accounting and tax advice we offer, and the same holds true for financial planning. I recommend the RFP designation, offered by the Institute of Advanced Financial Planners, and the CFP, issued by the Financial Planning Standards Council (FPSC), to demonstrate well-rounded competence in financial planning. In addition, as a founding member of FPSC, the CICA should insist that CAs have the appropriate credentials before holding themselves out as financial planners.

CAs in public practice should consider studying for additional credentials as part of the requirement for continuing education and expand their abilities while meeting their educational requirements.

We face the challenge that clients pay us a fee for advice and inevitably pay a broker to buy product. This puts us at a competitive disadvantage with other financial planners who do both because the Rules of Professional Conduct prevent us from accepting referral fees from brokers. However, I find my financial planning advice often leads to opportunities for personal tax preparation and business services.

Thanks for a thorough article that should be helpful to CAs considering upgrading their skills and offering services in this rewarding area.

Blair Corkum, CA, RFP, CFP
Charlottetown

CICA’s reply: Blair Corkum provides an important message to the profession. As CA professionals, when we hold ourselves out as experts in a particular area of competence, we are expected to have the necessary competence, knowledge and skill in that area. The CA qualification process and the UFE, as demanding as they are, are intended to prepare a student to enter the CA profession. Although the UFE Candidates’ Competency Map includes elements of financial planning, it is fair to say that our prequalification education is not intended to provide all that is necessary to hold oneself out as an expert in financial planning. This is true of many areas in which our members practice — investigative and forensic accounting, information technology, business valuation, corporate finance, etc. Formal postqualification credential programs such as the CFP are excellent opportunities for CAs to supplement their CA training with the knowledge and skills required by their chosen area of practice and to identify their expertise to the public.

Letters should be sent to: The Editor, CAmagazine, 277 Wellington Street West, Toronto, Ontario M5V 3H2 (letters.editor@cica.ca). CAmagazine reserves the right to edit / shorten them for clarity.