Did you know that there are new technology rules for Financial Planners? This blog post was originally published on October 28, 2021, and was last updated on June 17, 2026.
In July 2021, the FP Canada Standards Council added two new rules to their Standards of Professional Responsibility. The rules were updated again, with the new standards coming into effect from June 1, 2024 onward.
Certified financial planners (CFPs) & qualified associate financial planners (QAFPs) have some new expectations and requirements pertaining to the technology they use as part of their financial planning process. We’re going to break these two new rules down for you and demonstrate how Snap Projections helps to satisfy these requirements. We enable Planners to easily comply and meet these requirements, so if you’re a Snap user, we’ve got you covered for these changes.
Rule 29: Do you understand how things are calculated?
It states that:
Rule 29: When selecting, relying on, recommending, or using technology in the financial planning process, a Certificant:
a) Must take reasonable proactive steps to gain a general understanding of the methodologies underlying the technology that have a direct impact on financial planning projections and recommendations;
b) Must have an understanding of the financial assumptions underlying the technology that have a direct impact on financial planning projections and recommendations;
c) Must validate that the inputs and assumptions used are reasonable and appropriate based on the client’s circumstances; and
d) Must validate that the outputs generated are reasonable and appropriate for the client before relying on them, or presenting the final recommendations or strategies to the client.
In laymen’s terms, this new rule simply means that Financial Planners need to understand what data goes into a financial planning software, and whether or not the numbers that go both in and come out, are reasonable.
It means that you need to understand how things are calculated, and be able to validate that the assumptions and outputs are reasonable.
The other layer here is that all of this pertains to what is reasonable and appropriate for your individual client, which means you really need to “know your customer”.
If you use financial planning software that you don’t understand because it isn’t transparent, or don’t invest the proper time in client discovery and awareness, you may find yourself in breach of these new rules.
Providing transparency: How does Snap Projections help with this new expectation?
Snap Projections takes great care to document and share the methodologies and assumptions that underlie the software.
We believe a thorough understanding of these inputs is important to ensure the outputs of the software are as intended for your needs. We use current government-provided inputs where available (e.g., tax rates, CPP benefits) and use reasonable and customizable assumptions where required (e.g., inflation, portfolio holdings). Where possible, we use industry-recommended inputs (e.g., the FP Canada Projection Assumption Guidelines (PAG) for the rate of return assumptions).
Additionally, our data entry flow encourages the review and validation of many of these assumptions as the plan is initially being created. In addition to the resources you’ll find below, it’s worth mentioning that we have a stellar Customer Support team that is available to answer any questions you have. If you’re wondering where a number is coming from, or how something was calculated, all you need to do is ask. You won’t be left in the dark and we will ensure you have the information you need to be confident in the numbers and plans you present to your clients.
Articles outlining our methodologies and assumptions can be found throughout our Help section of the website. Some of the most relevant articles are included below:
- Basic Definitions and Assumptions
- Contributions and Withdrawals Default Logic
- Adjusting Rates of Return throughout the Projections
- Canada Pension Plan (CPP)
Once we cover the data and numbers, we also need to consider the human element here, which is the responsibility to know your customer, and to know what is reasonable and appropriate for each individual.
We provide you with a Financial Planning Questionnaire to obtain the relevant information that you need to not only serve your clients but remain compliant.
Rule 30: Can you explain it to the client?
It states that:
Rule 30: In all cases, irrespective of the data used, the material assumptions used as well as the rationale must be documented, and clearly communicated to clients.
This one is a bit simpler to digest, and is essentially stating that you must be able to both demonstrate and document your assumptions and reasonings, and also show you’ve shared this information with your clients in a manner they can understand.
Keeping things simple: How does Snap Projections support managing this requirement?
Snap Projections includes a dedicated page in the Report section for assumptions used in the projection. In addition to these values, advisors can add their own comments in this section for any other material details not captured in the default tables.
If assumptions are more appropriate in reference to specific figures (e.g., tables, charts) you can add comments to any section of the Report. Assumptions currently included are listed below:
- Start year
- End year
- Inflation rate
- Province for tax purposes
- Rate of return on capital assets
- Appreciation rate on real assets
- Retirement age
- CPP start age
- OAS start age
- CPP % of maximum
- OAS % of maximum
Other assumptions may be included depending on additional functionality added to the projection (e.g., education goal, insurance). There is also the option to export the plan as an Excel file, which documents 100+ different assumptions/parameters used in the plan.
Our reports are simple and easy to understand for clients. For sharing the plan and communicating with your client, you have several options. You can present the plan and charts in real-time, either in-person or through screen-sharing, and then download a PDF of the report to email or print and provide it to your clients.
At the end of the day, even though this may be a lot to digest, these changes are good. These new rules, which are timely and relevant to the changing environment, are designed to protect not only the clients but the Advisors as well. And in the spirit of complete transparency, these resources and features in Snap are not new and were not built to accommodate these new rules. For us, this is business as usual because we fundamentally believe in having a tool that Advisors, Planners, and clients alike can understand.
We believe in transparency, and ensuring everyone involved understands the assumptions and methodology.
Why these new tech rules matter in an era of AI-driven financial planning
Artificial intelligence is rapidly finding its way into financial planning practices, and tools like ChatGPT can be incredibly useful for drafting communications, summarizing information, brainstorming ideas, and automating repetitive tasks.
But should ChatGPT be used to actually create financial plans and generate client recommendations?
FP Canada’s Standards of Professional Responsibility place clear obligations on CFP® professionals to understand the methodologies, assumptions, inputs, and outputs behind the technology they use. When viewed through that lens, relying on a large language model like ChatGPT to generate financial planning recommendations creates significant challenges for meeting those professional standards.
How can Financial Advisors and Planners safely use AI in financial planning?
The safest and most effective way to use AI in financial planning is to focus on tasks that improve efficiency without replacing professional judgment.
AI can help summarize client documents, extract information from investment statements, identify missing data, draft meeting notes, prepare client communications, and create first drafts that advisors can review and verify. In these cases, AI acts as an assistant rather than a decision-maker.
The Advisor remains responsible for validating the information, selecting appropriate assumptions, evaluating recommendations, and ensuring the final advice is suitable for the client. This approach aligns much more closely with FP Canada’s Professional Standards because the Advisor maintains control over the planning process while benefiting from the productivity gains that AI can provide.
Rather than asking AI to create a financial plan, Advisors should use AI to reduce administrative work, minimize manual data entry, and free up more time for the analysis, judgment, and client conversations that truly require professional expertise.
This distinction is why many Advisors are finding value in AI-powered tools that assist with data gathering and plan creation rather than replacing the planning process itself.
For example, AI can be used to review client questionnaires, tax returns, investment statements, and other financial documents to help create a first draft of a financial plan. The Advisor can then verify the imported information, review the assumptions, assess the recommendations, and maintain full control over the final advice presented to the client.
In this model, AI helps reduce the time spent on repetitive administrative work while preserving the transparency, oversight, and professional judgment required by FP Canada’s standards.
Learn more about Snap’s AI Import Assistant.
