CFPs more profitable, productive, professional
Certified financial planner (CFP) professionals are more productive and profitable compared to financial planners without certification, a global research study showed.
According to the Financial Planning Association (FPA), the study showed CFPs bring in higher revenue and reduce corporate risk.
“This is good news for the institutions who support higher professional standards within their financial planning operations,” FPA CEO Mark Rantall said.
“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.”
According to the research, 64 per cent of firms believe advisers/planners with CFP certification achieve a higher rate of growth of assets under management.
More than half the firms think CFP professionals bring in higher revenue, and 50 per cent said business revenue rose when they hired CFP professionals.
The study said 58 per cent of firms report CFP professionals cut corporate risk.
Released by the Financial Planning Standards Board (FPSB), the study surveyed 92 financial services firms in 12 territories, representing 120,117 financial advisers and 11,568 CFP professionals.
The study also said 70 per cent of firms found employing more CFP professionals boosted client satisfaction with the firm, while 56 per cent said they led to increased client retention.
Conducted by independent researcher Comparator, the study comes as the first intake of enrolments in the CFP Certification Program for the year begins.
Sixty-nine per cent of firms plan to increase CFP professionals in the firm during the next 12 months through both hiring them and encouraging current advisers/planners to get CFP certification.
Recommended for you
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
New Zealand’s financial regulator is following the footsteps of its Tasman neighbours and proposing to conduct a review on improving the accessibility of financial advice and advice business models.
