1 presented by: noel maye, ceo financial planning standards board ltd. cifps national conference, 12...

1

Presented by:

Noel Maye, CEOFinancial Planning Standards Board Ltd.

CIFPs National Conference, 12 June 2007

Financial Planning and the

CFP® Marks: A World View

© 2007, Financial Planning Standards Board Ltd.


4210,000

20,00030,000

60,000

105,000

Global CFP Professional Count

1973 20062001199619911985


CFP® Professional Growth (1996-2006)Global CFP Certificant Growth

0

10000

20000

30000

40000

50000

60000

Year

# o

f C

ert

ific

an

ts

International

USA


FPSB Mission

To benefit and protect the global community by establishing, upholding and promoting worldwide professional standards in financial planning. Our commitment to excellence is represented by the marks of professional distinction –

PC_fpsb_final.exe


FPSB Affiliate Organizations

Asia Pacific Australia China Chinese Taipei Hong Kong India Indonesia Japan Malaysia New Zealand Rep. Korea Singapore

Europe Austria France Germany Switzerland U.K.

Africa South Africa

North America Canada

South America Brazil


Potential Growth Areas

Asia Pacific Thailand Brunei Philippines

Caribbean Bermuda

Europe Belgium Bulgaria Greece Hungary Ireland Italy Netherlands Poland Romania Spain Sweden Turkey

Middle East Egypt Israel Saudi Arabia U.A.E

South/Central America Argentina Chile Colombia Uruguay Mexico

8

What We Have in Common


9

(1) Our Understanding of What Financial Planning Is



Financial Planning Definition

Financial planning is the process of developing strategies to help clients manage their financial affairs to meet life goals. all relevant aspects of a client’s situation inter-relationships among often conflicting

objectives across a large breadth of financial planning

activities.


Financial Planning Process

1. Establishing and defining the client-planner relationship.

2. Gathering client data including goals.

3. Analyzing and evaluating the client’s financial status.

4. Developing and presenting financial planning. recommendations and/or alternatives.

5. Implementing the financial planning recommendations

6. Monitoring the financial planning recommendations.

12

(2) Drivers of Financial Planning



1. Consumer Demand

Shrinking pensions More personal responsibility People living longer Less savings/more debt Complicated products


2. Shift to Relationship Model

Product-centered Sell product you have Short-term focus Transaction

Client-centered Meet client needs Long-term focus Relationship


3. Government Regulation

Fairness to client Disclosure Ethical behavior Certification body / regulator partnerships


4. Globalization

All clients are ‘international’ Multi-national firms need standard approach Portable qualifications Convergence

17

(3) Global Mark of Excellence



Wall Street Journal, 1/28-29/06


Business Week, Feb. 26, 2007

“Of all the

financial planning

designations, the

one that carries

the most clout is

Certified Financial

Planner. ...”


Wall Street Journal, 2/28/06


Ameriprise Financial

“With over 2.5 million clients, more CERTIFIED FINANCIAL PLANNERTM practitioners than any other firm, strong asset management capabilities, … and a robust insurance and annuities business, Ameriprise Financial will be a leader in the industry.”

Jim Cracchiolo, chairman and CEO of AEFA

announcing the launch of Ameriprise Financial


Bangkok Post April 2007

“There has been

great demand for

CFP

professionals,

particularly among

financial

institutions.”


Financial Planner Success

Aspects of Financial Planner Success [Scale of 1–4]

(1) People/Communication Skills 3.79

(2) Referrals from Clients 3.68

(3) Having the CFP® Certification 3.54

(4) Educational Background 3.39

(5) Keeping up with CE/CPD 3.32

(6) Specialization 2.93

2007 Survey of Trends in Financial Planning, College for Financial Planning


Earnings Boost With CFP® Certification


Smart Magazine (Chinese Taipei)

(1 January 2007)

Top Seven Credentials With Pay Increment Potential – Go For Quality Not Quantity

Test of English for International Communication (TOEIC)

IT credentials such Linux, Cisco, and Oracle, CFP certification CFA credential Securities analyst credential

29

(4) Global Platform for Certification Standards



Initial Certification Standards

Education

Examination

Experience

Ethics

Ongoing Certification Standards

Continuing education

Practice Standards and ethical review

CFP® Certification Standards

31

Where We Are Distinct


32

(1) Recognition of Financial Planning, CFP Marks



2006 CFP® Certificant Count ~ 104,861

Country/Region# of CFP

CertificantsCountry/Region

# of CFP Certificants

United States 53,027 Singapore 667

Canada 16,726 United Kingdom 610

Japan 14,751 China 488

Australia 5,308 New Zealand 385

South Africa 3,154 Chinese Taipei 345

Malaysia 2,689 Switzerland 242

Hong Kong 2,293 India 146

France 1,471 Austria 110

Republic of Korea 1,343 Brazil 97

Germany 1,009 Indonesia 0






United Kingdom 610

South Africa 3,154

Switzerland 242

Hong Kong 2,293

France 1,471

Republic of Korea 1,343






United States 53,027

China 488

India 146

Indonesia 0

36

(2) Dominant Delivery Mode, Compensation Method



Channel/Pricing for Financial Planning

Financial services firms (insurance, banks, asset management, etc.)

Solo / boutique practitioners Planning and/or implementation Commission-only Commission and fees Fee-only


2007 Compensation Survey

2007 Survey of Trends in Financial Planning, College for Financial Planning

39

(3) Localized Content, Application



Global Framework, Local Program

Four Es localized to academic / regulatory / marketplace needs

Education

Examination

Experience

Ethics

41

(4) Readiness for Financial Planning



Readiness for Financial Planning

Client awareness, value Financial services firm structure, reward

scheme Regulatory environment Social network

43

FPSB Goals



FPSB Goals

Establish Financial Planning as a Global Profession

Establish CFP certification as the mark of the professional financial planner


Characteristics of a Profession

Specialized body of knowledge Recognized formal education process Standard of professional qualifications for admission Standards of conduct Recognition of status Acceptance of social responsibility Organization to advance group’s social

responsibility


FPSB Goals

1. Uniformity of competency, ethics and practice standards globally (80:20 approach)

what is possible? What is desirable?


FPSB Goals

1. Uniformity of standards globally (80:20 rule)

2. Core financial planning curriculum/exam Global “Call for Papers” on ways to deliver global

financial planning curriculum Education Advisory Panel Education and Assessment Working Groups


FPSB Goals


2. Core financial planning curriculum / exam

3. Affiliate assessment/training 14 completed, four underway (Brazil, Canada,

China, Chinese Taipei) Identify the gaps in certification program Train to eliminate deficiencies


FPSB Goals



3. Affiliate assessment / training

4. Cross-border reciprocity among Affiliates Hong Kong, US four-hour exam Hong Kong, PRC, Chinese Taipei Germany, Austria Australia, New Zealand Commonwealth countries


FPSB Goals




4. Cross-border reciprocity among Affiliates

5. Growth in existing / new markets


FPSB Goals






6. Outreach to regulators / key influencers


FPSB Goals






6. Outreach to regulators / key influencers

7. Global CFP mark promotional campaign Same look, feel all over the world Localization of language, imagery


Global CFP Mark Promotional Campaign

Brand values for “CFP Professional” and “Financial Planning”

Brand DNA (values, personality, proposition) Brand Guidelines for promotional activities Template advertisements, body copy,

presentations, promotional brochures, etc., for Affiliates and CFP professionals

54

Thank you!

www.fpsb.org


1 presented by: noel maye, ceo financial planning standards board ltd. cifps national conference, 12...

Documents

financial planning process

drivers of financial

financial affairs

clients financial status

professional standards

client data

clientplanner relationship

cfp professional growth