Advisers hear time and time again of the importance of furthering their education, but are you aware that those who go above the board earn more than their peers who achieve the base line standard?
This is clearly demonstrated by extensive research conducted by the FPA into the value of the CFP® designation.
From a consumer perspective the CFP® designation is the most commonly cited credential when looking for a financial planner and consumers who use (or express a preference to use) CFP® practitioners are willing to pay 27% more for financial advice.
Taking the practice perspective, it was discovered that 57% of licensees report that business revenue increased as a result of employing CFP® professionals, and 65% of licensees claim that client relationships are strengthened by having a greater number of CFP® practitioners. We also see that 75% of licensees would pay up to $40,000 per annum more for planners with a CFP® designation and that CFP® professionals earn $35,000 per annum more than other financial planners.
Finally, from a regulatory and risk perspective, CFP® professionals account for over 35% of the planner population but less than 2% of ASIC enforcement activity, and 78% of licensees state that corporate risk and complaints are reduced by having a greater number of CFP® practitioners.
If the financial planning community is to grow and command the respect it deserves in the professional sphere, its members should do all they can to ensure that the client is both serviced and protected. Personal investment in the form of education and development is the truest signal to the market that financial planners are trustworthy professionals in possession of all the necessary tools to make a real difference.
The FPA firmly advocates the growth of the profession within this framework. We have turned a corner to begin the next stage of our journey – supporting our members as they deliver the fruits of their labours to help the Australian public realise their financial goals.
Mark is the Chief Executive Officer of the Financial Planning Association of Australia (FPA) and a Certified Financial Planner professional. Following a 25-year financial services career, he was appointed by the FPA Board in 2010 to lead the FPA in raising the standing of Australia’s professional financial planners.
