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What is advice-only financial planning?

A financial plan created by an advice-only financial planner is provided by a Certified Financial Planner (CFP®) professional or Qualified Associate Financial Planner (QAFP™) professional whose only financial compensation is the agreed upon fees (through a letter of engagement) paid directly by those seeking a financial plan.

An advice-only financial planner does not receive referral or commission fees from investment or insurance providers. They are also able to work with your current team of investment advisors, insurance advisors, lawyers, and accountant. A financial plan should not just be a financial forecast, it should plan around your life goals and provide recommendations that move you closer towards those goals tax efficiently.

There are five key principles to being an advice-only planner:

  1. They do not manage money or sell insurance or other financial products.

  2. They do not receive compensation for recommending insurance or investments or other financial products.

  3. They do not receive or pay referral fees to or from anyone.

  4. They do not participate in revenue-sharing arrangements with investment or other firms.

  5. The only source of revenue or income for their planning practice is the fee their client pays directly.

Who are the financial planners listed in this directory?

Along with meeting the five principles of being an advice-only financial planner, all financial planners on this directory meet the following criteria:

  1. They are either a Certified Financial Planner (CFP®) professional or Qualified Associate Financial Planner (QAFP™) professional as certified by FP Canada.

  2. They are a full member of the Financial Planning Association of Canada.

  3. The Financial Planning Association of Canada has verified that their practice meets the five principles, as well that they are in proper standing with FP Canada and the Financial Planning Association of Canada.

What is the difference between an advice-only financial planner and fee-for-service financial planner?

Many advice-only financial planners also identify as a fee-for-service financial planner. However, many financial planners that identify as fee-for-service do not adhere to the five principles regarding compensation. They may also collect referral fees, commissions, and trailing fees in addition to charging for the financial plan.