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Behavioural Finance for Financial Advisors

CE CREDITS:

  • Life Agents (provincial requirements): 2.5 hours, Eligible in BC, SK, ON, AB (AIC #40517)
  • CFP® certificants: This course qualifies for 2.5 FPSC-approved CE credits in the Financial Planning category.

FORMAT:

Course Notes in PDF format (print them or read them online). You must pass an online Course Quiz to obtain CE credits. Best viewed on PC/MAC full screen. May not be compatible with all mobile devices (smartphones, tablets).

COURSE DESCRIPTION:

As a practicing advisor, it probably didn’t take you long to realize that your clients rarely behave like the rational, consistent, mechanical decision makers that we’ve read about in textbooks. Instead, all of us humans are inconsistent, irrational, and emotional. The goal of this Course is to provide you with a better understanding of decision-making and how biases and emotions can affect both your clients and yourself as an advisor. This new understanding can lead to improved practices and, as they say, the first step is to recognize there is a problem.

The Course introduces and explains some of the behavioural biases that can be seen in human behaviour, and applies them to practical financial planning applications. The Course then reviews the traditional ways of assessing a client’s risk tolerance and explores how the behavioural view can expand and improve the outcomes beyond those achieved with the traditional risk tolerance questionnaire.

NOTE: You have one year from time of purchase to complete this course.

AUTHOR: Derek Dedman, CFA, CFP®

PUBLISHED: December 2014

FPSC and FPSC CE Credit logo are registered trademarks of the Financial Planning Standards Council

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