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Alerts & Updates

FPSC and IQPF Re-Release Unified Projection Assumption Guidelines for Financial Planners across Canada

Publication now includes data sources and calculations for increased transparency

TORONTO, March 28, 2017: Financial Planning Standards Council (FPSC) and Institut québécois de planification financière (IQPF) have re-released the Projection Assumption Guidelines, which aid planners in making financial projections that are free from potential biases or predispositions. 

In addition to clarifying that the Guidelines are primarily recommended for long-term financial projections (10 or more years), the re-release includes an Addendum containing the data sources on which the Guidelines are based, as well as the specific calculations for inflation and rate of return guidelines. The newly included Addendum offers financial planning professionals an opportunity to fully understand and replicate the recommended calculations for their own use.

The Addendum also includes historical Projection Assumption Guidelines dating back to 2009, rates of return for relevant indices and the standard deviation of returns. 

“The Projection Assumption Guidelines aid financial planners in developing financial projections that are credible and objective to best help clients in meeting their important life goals,” says William Jack, actuary, CFP® professional and member of the FPSC Standards Panel—an independent panel of CFP professionals and members of the public with responsibility for the build out and maintenance of FPSC’s financial planning standards.  “The addition of the Addendum will help ensure the Guidelines are understood and readily adopted by financial planners across the country.”

The Projection Assumption Guidelines and Addendum are developed by the Projection Assumption Standards Committee, a team of actuarial and financial planning professionals. FPSC and IQPF thank Committee members Nathalie Bachand, A.S.A., F.Pl.; Martin Dupras, A.S.A., F.Pl., M.Fisc.; Daniel Laverdière, A.S.A., F.Pl.; and Patrick Longhurst, CFP®, FCIA for their significant contributions to this important publication. 

About Financial Planning Standards Council
As a standards-setting and certification body working in the public interest, FPSC’s purpose is to drive value and instill confidence in financial planning. FPSC ensures those it certifies (CERTIFIED FINANCIAL PLANNER® professionals and FPSC Level 1® Certificants in Financial Planning) meet appropriate standards of competence and professionalism through rigorous requirements of education, examination, experience and ethics. More information is available at www.fpsc.ca.

About Institut québécois de planification financière 
The Institut québécois de planification financière (IQPF) is the only organization in Quebec authorized to grant financial planning diplomas and to establish rules concerning the ongoing professional development of professional financial planners. Only professionals recognized by the Institut québécois de planification financière are authorized to use the title of Financial Planner (F.Pl.) in Quebec. The IQPF is also the only organization in the province entirely dedicated to and reserved for financial planners.

For more information, please contact:
Caroline Horcher
Manager, Public Affairs
Financial Planning Standards Council
chorcher@fpsc.ca
416.593.8587, ext. 232 or 1.800.305.9886