The Financial Planning Association (FPA) says a major global research study has revealed that financial services firms that hire CERTIFIED FINANCIAL PLANNER^®professionals are more productive, generate higher revenue and profit, and reduce corporate risk.

Conducted by independent researchers Comparator, the global benchmark study was released by the Financial Planning Standards Board (FPSB) owner of the international CFP^® Certification Program.

“This is good news for the institutions who support higher professional standards within their financial planning operations,” said FPA CEO Mark Rantall. “The study also backs the FPA’s own research which shows the professional dividend benefits that accrue to the individual planner by pursuing the CFP certification pathway,” he said.

“On top of that, we know the consumer best interest duty compels the ultimate benefit of delivering highly qualified, ethical outcomes for the clients of CFP professionals”.

The FPSB/Comparator study surveyed 92 financial services firms in 12 territories, representing 120,117 financial advisers and 11,568 CFP professionals. The results of the research demonstrate the positive impact of hiring CFP professionals across numerous areas of business.

Financial services firms in Australia report higher profitability and client satisfaction from CFP professionals, as opposed to planners without certification. A majority (64%) of firms also believe that advisers/planners with CFP certification are more productive. Meanwhile, CFP professionals are seen to lower compliance and legal risks for 64% of firms.

CEO of the FPA, Mark Rantall, said the research highlights the vital role of CFP professionals in universally advancing the financial planning profession. Commenting on the findings, he said:

“The CFP Certification Program is part of the FPA’s commitment to enhancing the professional standards of financial planners. As the research from the FPSB confirms, the 5,500 CFP® professionals in Australia and 150,000 globally have contributed significantly towards transforming financial planning into a universally respected profession by continuing to adhere to the highest standards in our profession.

“Moreover, what this indicates is that employing CFP professionals is not just a matter of providing the highest professional and ethical service to clients but also delivering results to a company’s bottom line. We truly believe that the highest certification available in Australia has significant professional dividends, both to the individual CFP professional and the firms that employ them.”

The FPSB research findings come during the first intake of enrolments in the CFP Certification Program for the year. There has been strong interest in enrolments so far with a high number of enquiries received.

Mr Rantall went on to encourage planners to enrol in the CFP Certification Program as a tool to further their financial planning career.

“With more than two thirds (69%) of firms in Australia planning to increase the number of CFP professionals they employ this year, and more than half (55%) saying that CFP professionals have faster career advancement, the reasons to take the next step in your professional development are clear. The CFP designation is a true professional passport for financial planners looking to improve their hiring prospects and client value proposition.”

CFP Certification Program enrolments close on 21 February 2014. Visit the FPA website to enrol.

Key findings of research for Australian firms include:

CFP professionals are more productive and profitable

CFP professionals lower compliance risks

CFP professionals improve client satisfaction

CFP certification as professional passport

• 69% of firms plan to increase the number of CFP professionals in the firm during the next 12 months, though both hiring more CFP professionals (38%) and supporting attainment of CFP certification among current advisers/planners (31%)

Compared to advisers/planners without certification:

• 55% of firms see higher rates of career advancement for CFP professionals

To download an infographic of the FPSB’s global research results, click here.

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Mark Rantall, CEO of the FPA said that the increase of nearly 65% over the same period in the previous year is a tangible sign that financial planners are embracing the call to build their future based on the bedrock of professionalism and education.

“These are welcome numbers and show increasing support of our mission to uphold the CFP designation as the gold standard in professional financial planning certification,” he said.

“Over 70% of our CFP practitioners are already degree qualified, and these members also enjoy additional benefits including stronger opportunities flowing to their businesses. Research commissioned by Investment Trends showed that over 86% of CFP professionals believe that having the CFP designation has a positive impact on their reputation,” he said.

While 58% of CFP professionals surveyed by Investment Trends agreed that current business conditions are challenging, they were least concerned about the ban on non-risk commissions under the FoFA reforms and 84% reported that their businesses were at least as profitable as last year (source: Investment Trends April 2012 Planner Business Model Report).

Mr Rantall said that these encouraging figures showed that taking up the certification journey was a sure way that financial planners could build their business, demonstrate to clients a clear point of difference and embrace the highest standards in the profession recognised globally.

The FPA is confident that the future pipeline for growth in the CFP designation is strong.  63% of the professional body’s Financial Planner CFP^® practitioners are degree qualified and eligible to be on the pathway to the global CFP certification.

Mr Rantall said, “For those who are not yet members of the FPA, our message is to join us before the degree requirement for FPA practitioner membership kicks in on 1^st July 2013.  The work we’re doing towards getting our Code of Professional Practice approved by ASIC to obviate the need for opt-in, as well as our ongoing effort to enshrine the term ‘financial planner’ are likely to be tremendously advantageous for financial planners who are part of the FPA community going forward.”

27 July 2012

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