Professional Responsibility and Seniors: Advisor Guidance for Ethical Practice
As a CFP professional, you need a professional responsibility CE credit annually. This course provides that credit. The focus is on ethics but you’ll read background on the challenges seniors present and thought-provoking case studies centred on seniors. Each case study draws upon FPSC® Principles and Rules to provide guidance for your responsibilities as a professional.
As a CFP professional, you need a professional responsibility CE credit annually. This course provides that credit. The focus is on ethics but you’ll read background on the challenges seniors present and thought-provoking case studies centred on seniors. Each case study draws upon FPSC® Principles and Rules to provide guidance for your responsibilities as a professional.
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should be exercised when dealing with seniors engaged in higher risk<br />
investments or strategies, or who deplete capital through withdrawals<br />
that exceed returns (other than through required RRIF withdrawals or<br />
similar programs). This includes using margin or other leveraged<br />
investment programs.<br />
• <strong>Seniors</strong> have unrealistic expectations <strong>for</strong> investment income. Their<br />
low risk tolerance (oriented towards preservation of capital) may be<br />
one of the most daunting seniors challenges present. This is<br />
particularly the case <strong>for</strong> seniors facing disconcerting realities,<br />
including: inability to maintain desired expenditure levels without<br />
depleting capital; a need to work longer than anticipated; <strong>and</strong><br />
dependency on family members <strong>and</strong> others rather than selfsufficiency.<br />
• <strong>Seniors</strong> are fearful <strong>and</strong> uncertain about their future financial situation<br />
<strong>and</strong> life circumstances. These emotions can strongly influence<br />
behaviour in their investment activities.<br />
• <strong>Seniors</strong> are more susceptible to physical (e.g. hearing, vision) <strong>and</strong><br />
cognitive (e.g. memory) impairments. These impairments must to be<br />
accommodated in an advisory relationship. Often there is no sudden<br />
onset of impairment <strong>and</strong> advisors <strong>and</strong> firms are confronted with the<br />
daunting task of determining the point in time in which gradual<br />
degeneration has become an impairment issue.<br />
What do you need to watch <strong>for</strong> <strong>and</strong> be prepared to accommodate in your<br />
relationship with a senior client?<br />
• Senior clients with portfolios based on Inappropriate<br />
recommendations or advice, created by someone to take advantage<br />
of vulnerabilities or capitalizing on their fears <strong>and</strong> uncertainties.<br />
• <strong>Seniors</strong>’ heightened concern over future unknowns, including health<br />
considerations, life expectancy <strong>and</strong> the impact of economic factors<br />
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