Financial planning impacts every aspect of our personal finances, from asset-building and investments to household budgeting, debt management and taxes.

In Canada, the Financial Planning Standards Council (FPSC) develops, promotes and enforces professional standards via the Certified Financial Planner® (CFP Professional) designation.

CreditCards.ca asked the FPSC's Tamara Smith, Vice President Marketing and Consumer Affairs, for practical advice on how to avoid harmful relationships with unscrupulous planners.

CreditCards.ca: What should Canadians expect from a financial planning professional?

Tamara Smith: You can expect to have realistic conversations around what you can realize in returns, and that when your financial planner makes recommendations, they will give it to you in the context of your entire financial situation and not focus on just one piece of the pie.

You can expect planners to explain an opportunity or a tactic that they want to use, until you understand it. They should explain ideas in layman's terms. If something is complex, and the financial planner says, "Trust me on this -- you don't need to know the details," then step back and say, "I need to fully understand it."

Because, at the end of the day, clients are accountable for decisions made. Financial planners may present the opportunities, but you have to say yes or no.

CreditCards.ca: What are some warning signs of inappropriate investment advice?

Smith: One, if it sounds too good to be true, it often is. Guaranteeing a return that really can't be guaranteed is another big flag that something may not be right. A time limit on any offer or you're feeling too much pressure are also warning signs. You need to take a step back and seriously think about whether this is a legitimate offer.

Your financial planner should never put you in a position where you feel pressured or you only have half an answer. Planners should be very open to giving you more details, to keep answering your questions until you feel you can make an informed decision.

CreditCards.ca: Can financial planners ask about your credit score?

Smith: It's really important to have a very candid and honest relationship with your financial planner. Part of that is open disclosure on both sides. Is it unreasonable that someone would want to see your credit score? No, because debt management is part of planning that can determine whether you need to see a credit counsellor.

Wanting to understand your credit score is not unusual. A financial planner should be taking a holistic approach and look at your entire financial situation. The more honest you are with your planner, the better advice you're going to get back.

CreditCards.ca: Would you be suspicious if a financial planner didn't ask enough questions?

Smith: Yes, if a financial planner doesn't ask enough questions, that's definitely something to take into account. That speaks to whether the financial planner is doing all the talking, isn't asking enough questions and isn't listening to you. Financial planners need to understand your goals and financial circumstances, which requires a lot of listening and questioning.

CreditCards.ca: What should consumers watch out for in terms of planner compensation?

Smith: A competent and ethical financial planner is not going to be dodgy on compensation disclosure. They're going to be very open and clear on how they get paid and the fees that you're going to incur as a result of working with them -- before you're charged, not after.

CreditCards.ca: Are there safeguards for working with financial planners?

Smith: One way to make sure that you're working with a competent and qualified financial planner is to look at their credentials and designations and find a professional that has to abide by a code of ethics. This ensures that the planner puts your interests above their own.

There is a whole alphabet soup out there that consumers have to navigate through, in terms of what letters put behind their names. You want to find a designation or qualification that demonstrates competence through an education and examination process and that requires work experience. The gold standard for those qualifications is the Certified Financial Planner (CFP Professional) designation, which the FPSC administers.

But it is a "buyer beware" market, so consumers who are looking for a planner really need to ask the 10 questions listed on the FPSC website, and make sure that the letters behind the planner's name really do mean something.

CreditCards.ca: Can the upcoming Financial Planning Week help Canadians find a dependable planner?

Smith: Financial Planning Week encourages people to take a small step towards empowering themselves and doing something to make financial planning a part of their lives. Either evaluating your existing relationship with your financial planner or starting an engagement with a financial planner is a good way to celebrate Financial Planning Week.

See related: How to find a qualified financial planner; Expert Q&A: How to get debt under control