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.