From major industry trends through the details of CE harmonization, Tashia Batstone & Pamela Steer put their new MOU in the context of a changing client demand
Last week two of the Canadian financial services industry’s largest professional organizations announced a new memorandum of understanding (MOU) which promises a greater degree of knowledge sharing and efficiency in a rapidly changing client landscape. CPA Canada and FP Canada’s new MOU will give CPAs opportunities to take on FP Canada credentials, courses, and conferences. CFPs will also gain access to select CPA Canada programs.
Tashia Batstone, President & CEO of FP Canada, and Pamela Steer, President & CEO of CPA Canada, explained what their partnership means in the context of new client expectations and industry changes. They went into some of the details of what their partnership will look like for planners and accountants, as well as how other stakeholders in this industry can view their new goals.
“The reality for me is that the two professional designations are very complimentary. There's always a discussion around competition, and I like to call it ‘coopetition,’” Batstone says. “There are skillsets that each profession brings to the table in terms of supporting consumers, and if we can marry that and make it easier for individuals to have both credentials, they are in a better position to serve the consumer.”
Steer agreed with Batstone, highlighting the increasing demand among clients that their financial services overlap. She says that many clients may increasingly want to speak with their CPA about their financial plan or at least trust that their CPA fully grasps their plan. Offering a fuller service capability is one way for professionals to better serve clients and capture market share. She notes that as the intergenerational wealth transfer continues, adding new complexities into the lives of ordinary Canadians and financial professionals, having this kind of cross-disciplinary understanding can prove instrumental to success.
“You need that full suite of skills, because it's not just advising on this transaction. There's this whole family dynamic that may underlie the biggest transfer of wealth that has ever been seen in this country that's underway right now,” Steer says. “When you get that combination of ability to really help your clients with the full scope and having that that broad educational uplift is incredibly important.”
Underlining both Steer and Batstone’s view is the industry’s wider shift towards a “holistic” model. While the word has become ubiquitous, advisors, dealers, accountants, and planners have all had to grapple with the various areas of expertise and technical knowledge that they might not have been initially trained on. There are plenty of instances, Batstone notes, where a planner has simply had to hand over responsibility to a CPA or vice-versa. Having a bit more interdisciplinary literacy can mean greater visibility into client needs as well as the solutions being offered for them.
Those clients, too, are increasingly expecting and demanding that their financial services are more of a ‘one-stop-shop.’ Batstone and Steer emphasized the way advisory firms have invested in providing that level of service to their clients. That has sometimes manifested in hiring a full-time CPA to support the planners on the team. They argue that making it easier for CPAs to gain a CFP, or vice versa, should equip teams with a cohort of professionals who can add value and move quickly in line with the overall trends in the industry.
Because the CPA is a provincially regulated designation there are some limits on what CFPs and other planners will be able to access in terms of CPA credentialling, while CPAs will have easier access to the full suite from FP Canada under this MOU. That said, there are specific tax courses that planners will be able to access in the form of formal post-certification training. Steer and Batstone say the arrangement should open new “pathways” for professionals to gain multiple forms of designation. They hope that training under both bodies ends up more bespoke and unique to the business niche that a particular professional is seeking to carve out for themselves.
One of the immediate wins that the two CEOs highlighted was some degree of continuing education harmonization that will take place under the MOU. They acknowledge that many professionals who hold dual designations can get frustrated by essentially having to learn the same material twice as part of their CE requirements. They are finding courses that can receive dual accreditation, saving professionals’ time and allowing each organization to specialize in the areas they are expert in.
Without committing to any wider partnership, both Batstone and Steer also mentioned a willingness to collaborate with CFA societies as well. They noted, however, the international nature of that organization which might add some complexity. Their overriding goal and emphasis remains, however, an adaptation to this industry’s stated desire to provide holistic services.
“The big thing for advisors and planners to take away is that there's a real focus on providing them with the skills and the competencies that they need to be successful in their roles,” Batstone says of the MOU. “To really look at that how they can do best for their clients. That's definitely the impetus behind this.”
