How FPSB Sets StandardsThe standards and certification requirements that support FPSB’s global professional framework for financial planning are developed using an extensive drafting and consultative process. FPSB’s process relies on input from standards-setting experts, certification specialists, practicing financial planners, academics and consumer representatives from around the world, as well as from FPSB’s nonprofit member organizations representing over 130,000 CFP professionals in 24 territories.
1. Identify Standard Need
FPSB’s Standards Committee, in consultation with an advisory panel made up of subject matter experts from FPSB member organizations and with key stakeholder groups, determines if a new standard or certification requirement is needed or an existing standard or certification requirement needs to be revised. FPSB’s Standards Committee recommends a plan of action to FPSB’s Board of Directors, which authorizes the Committee to pursue the creation of a new standard(s) or certification requirement(s), or conduct a review of an existing standard(s) or certification requirement(s).
2. Form Working Group
FPSB’s Standards Committee determines whether the new standard or certification requirement can be developed by the Committee itself, or whether the Committee needs to create a Working Group comprised of volunteer subject matter experts from around the world (identified based on the nature of the standard or certification requirement to be developed). FPSB’s Standards Committee ensures the Working Group has appropriate representation from FPSB’s key stakeholder groups and financial planning practice environments (including representation from the Standards Committee itself), and FPSB staff support the Working Group’s activities and meetings.
3. Create Draft Standard
FPSB’s Standards Committee or Working Group outlines the scope of the standard or certification requirement, based on the need to be addressed, and creates an initial draft. Relying on its advisory panel, as appropriate, the Standards Committee finalizes the draft, either by itself or in an iterative process with the Working Group, and obtains approval from the FPSB Board of Directors to release the draft standard for consultation.
4. Comment Period
FPSB provides a 60-day comment period during which it invites input on the draft standard from FPSB stakeholders. FPSB seeks feedback on the applicability of the standard, modifications needed to implement it in a territory, and potential impacts of the standard on the providers and consumers of financial planning. FPSB staff compiles feedback received, which is forwarded to the Standards Committee (and Working Group) for review.
5. Refine Draft Standard
Based on the feedback received, the Standards Committee (and Working Group) can either make minor revisions to the draft standard and the Standards Committee can approve the final draft, or the Standards Committee can substantially revise the draft standard by repeating steps 3 through 5 of this standards-setting process until a final standard is ready for Standards Committee approval.
6. Exposure Period
Once FPSB’s Standards Committee is satisfied with the standard or certification requirement as drafted, it recommends the FPSB Board of Directors approve it for an exposure period (the length of which depends on the complexity of the document or the changes made). This step provides FPSB stakeholders with an opportunity to review the final draft standard and to provide FPSB with any additional feedback prior to finalization of the standard by FPSB. FPSB staff compiles feedback received, which is forwarded to the Standards Committee for review. Depending on the nature of the feedback received, the Standards Committee either finalizes the standard and recommends it for approval by the FPSB Board of Directors, or repeats steps 3 through 6 of this standards-setting process until the Standards Committee submits a final standard to the FPSB Board of Directors for approval.
7. Standard Approval
The FPSB Board of Directors either approves the new standard or certification requirement as recommended by the Standards Committee or returns the document for additional revisions, at which point the Standards Committee repeats steps 3 through 6 as appropriate. Once FPSB’s Board of Directors approves the final standard or certification requirement, and the FPSB member organizations ratify the Board’s approval of the standard, it is published and becomes effective.
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