Effects of Filing Bankruptcy or Consumer Proposal as a Certified Financial Planner in Canada

Can a Certified Financial Planner File Bankruptcy or Make a Proposal?

Issues with finances happen across the board – regardless of socioeconomic status.

These troubles even happen to professionals in the financial industry.

If you are applying to become a planning professional or are already certified and renewing your status with the Financial Planning Standards Council (FPSC), then there may be some extra steps.

For one, you must tell them whether or not you are in a state of bankruptcy or are in the midst of a consumer proposal.

The board requests that you provide these details when you issue the Declarations of Professional Obligations part of the application.

There is a section on both the new and renewing form to supply these details.

In the event that you already filed your paperwork but have since proceeded with bankruptcy, you are legally obligated to inform the FPSC no later than 15 days subsequent to your filing.

When you do so, you must detail:

  • Cause of filing;
  • Date of filing;
  • Outcomes.

You are also obligated to detail specifics regarding your bankruptcy or consumer proposal.

FPSC reviews cases on an individual basis and, from there, chooses whether you are eligible for a either a renewed or a new certification in the industry.

Hiding Bankruptcy from the FPSC

Failure to disclose the state of bankruptcy or consumer proposal is in violation of the official Standards of Professional Responsibility.

It potentially will result in your suspension or the termination of your credentials.

Bear in mind that these financial dealings are public information and can be accessed by the FPSC.

Therefore, it is far superior to disclose the information up front.

To learn more about how these may impact your future, speak to the FPSC directly.

In the event that you want more financial information about dealing with debt, reach out to a Licensed Insolvency Trustee today.

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