To ensure that investors’ money is put into good use, it is necessary for a country to ensure that there is right registration that protects the investors from unqualified financial planners. Financial planners therefore need to be incorporated. Presence of professional financial planners would mean that there is a necessary guideline that ensures there is professionalism is practiced in investment.
Development of financial planning industry in Canada was a necessary move. The fact that there was an increase in the investment fund calls for creation of a body to guide investors in their investment. However, there is a risk in terms of the achieved comprehensive Education. As earlier noted, the amount of money that needs to be invested in increasing year in year out it would only be fair if the amount of growth that there is caters for ample education to professionals dealing with this type of investment. According to the current situation, the academic system is somehow slow in offering the education that is needed to equip the professionals to be involved in transaction on behalf of the investors. Though there exists an estimated 30,000 financial planners in Canada today, only about a third of them are qualified enough to do the job professionally (Smith, 1998). Such is just a scarily number as a bigger number is needed to run the investment industry which is attracting big numbers at the moment.
Introduction of software in financial planning is also falling short of achieving the best of the results. Though there has been a great emphasis in usage of software’s, there is the risk that comes with overdependence on the software. For each and every software used, there are assumptions set aside. At times these assumptions are not applicable at certain circumstances. Such times call for the financial planners to use their knowledge on investing to protect the client from bad investments. Incase the financial planners over rely on these software, it exposes them to the risk of misleading their clients and subsequently lead to wrong investments. It is therefore of utmost important that the financial planners possess great understanding of the principle regarding finance to minimize the chances of misleading their clients into making the wrong investment choices. The best way to go when it comes to usage of software’s is ensuring that though they may be used, the people using them know how they work and are able to tailor make them to meet a certain need.
In matters of regulation, the bodies that are dealing with regulations are notably not doing enough as well. To start with, the bodies lag behind when it comes to the minimum credentials that a financial planner should have, as this has not been agreed upon. If there are no set minimum requirements, there is the risk that many people may engage in this exercise qualified or not. There is also the risk that those people who apply for approved exam, tend to score very low scores (Smith, 1998). When there is failure in the examination process in the education system that promotes these bodies, there is need to ensure that there is more investment in this field to make certain that only the qualified get to practice. When there is such high failure and lack of an agreed upon credentials, it is usually unlikely to set a standard that need to be followed. Each of the provinces in Canada needs to have set regulation and rules that a practitioner in this profession has to have so as to attract soberness to this exercise.
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