CFP’s strike it rich

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Planners with those three letters after their name rake in 25% more than non-CFP advisers on average.

These are the results of recently released Investment Trends research, which also found that – among non-principal financial planners – experienced FPA members typically earn a third more than non-FPA planners with the same level of experience.

“This research highlights the double dividend accrued to the community and our members by continuing the journey to raise standards in financial planning. Not only do Australians turn more often to a CFP than any other designation when seeking a financial planner, they are also willing to pay up to a third more for that trusted service,” said FPA chair Matthew Rowe.

“So we see here the double dividend of financial planners delivering a fundamental social good, while also being remunerated well for their advice.”

Other research findings included:

  • 86% of the CFP planners surveyed believe that the CFP designation has a positive impact on their reputation and over half of those practitioners find that having a CFP designation has a positive influence on business growth.
  • 35% of consumers surveyed said that the CFP qualification is desired in a financial planner.

 “We know that Australians who receive professional financial advice are financially better off than those without. Unfortunately, there is still a high number of potential clients who do not know what qualification they should look for when choosing a financial planner,” said Rowe.

“The FPA community continues to improve education to consumers around financial planning qualifications through advertising promoting CFP standards as well as lobbying government on the legislation of the term financial planner.”

The release of the research coincided with the FPA and Financial Planning Education Council’s launch of a national financial planning degree curriculum.

“The research shows that financial planning is a viable career for the next generation entering university. The launch of a national financial planning degree will put financial planning in the mindset of those looking to help Australians improve their financial futures,” said Rowe.

  • Michael on 16/11/2012 10:09:43 AM

    Honestly, who apart from those who have paid good money to get it really believe this stuff?
    No disparagement of what people learn to to get CFP but clients pay because they see value in what is being provided. Can't remember if I have ever heard a client even ask for qualifications, any qualifications.

  • Patrick Canion on 16/11/2012 11:44:24 AM

    Michael,
    It's too bad that the empirical research does not support your ideological position, but there you have it. There will always be those that prefer faith healers to meical doctors too, but in the meantime CFPs will use their superior education and the disclipline that brings in order to better advise their clients. And reap the rewards, both financially and otherwise.

  • Matt on 16/11/2012 12:57:23 PM

    "35% of consumers surveyed said that the CFP qualification is desired in a financial planner." whereas the other 65% said "what's a CFP, I have no idea what that is"...

    35% sounds far too high anyway.

    I'm with you Michael, I can't remember when clients last asked for a qualification - so that's two out of three people who have commented so far...

    "67% of advisers don't see value in CFP".

    Isn't it wonderful how statistics can be used to argue anything...

  • Roger on 16/11/2012 1:02:28 PM

    I'm with Michael.

  • Jack CFP on 16/11/2012 3:34:16 PM

    hahah here we go again, professional financial planners who don't support their highest professional designation..
    Dear Michael, Matt and Roger. Please let this forum know if you know of any accountant, lawyer or doctor who holds the highest professional designation available to their profession and does not think highly of it?...
    "Can't remember if I have ever heard a client even ask for qualifications, any qualifications..". Michael, next time your potential client does not do business with you, I suggest you call and ask for some honest feedback. They will do business with a CFP without telling you :-(

  • Rod m on 16/11/2012 4:26:04 PM

    Jack what a crock. I have been around for three decades and I can assure you we work with 100% referrals from clients and they do not give a damn if I am CFP or XYZ it is about the advce we provide and how we provide it and the ongoing trust we build in the relationship with our clients.

  • Jack CFP on 16/11/2012 4:41:03 PM

    Rod, I am happy for you. You and all other professional planners who have such strong opinions of a CFP designation should however, feel the same for your fellow CFPs. Be happy for us!!!

  • Andrew on 16/11/2012 5:33:41 PM

    I am a CFP and happy to be one. If advisers dont want to be a CFP's that is fine with me I dont care but why denigrate the CFP ? If it has no value to you and has no impact on you, your business or your clients then why waste time writing on the subject ?

  • Brian on 16/11/2012 7:33:14 PM

    how many CFP's ( many of whom got their CFP's only because they had been in the industry for about 50 years) made disgusting amounts of money flogging Agribusiness products and double gearing to their poor unsuspecting clients???
    these are the ones who don't deserve to be able to flaunt their Certificates. the quality of the advice has no bearing upon the ownership ( or not) of what is sometimes an unwarranted qualification!!!

  • Janet on 17/11/2012 1:04:17 PM

    C F P, CFA, CAIA etc means nothing to our clients. We work with referrals only too. Although our staff have various qualifications - all with minimum university degrees, not one client ever asked or cared about CFP or CPA.

  • Rod m on 20/11/2012 8:15:11 AM

    Hi jack, no disrespect intended but I am tired of hearing CFP from the FPA is the only way ,

  • Steve on 21/11/2012 1:49:26 PM

    So here's the thing, what galls people is the FPA using the CFP as something special to jusify an additional levy, which the FPA then wastes trying to get people to be aware of the CFP in the first place. I mean if it was that special you wouldn't need to charge an extra advertising levy for it would you??

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