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Does it pay to be a certified financial planner?

Journalist: Carmen Reichman, FTAdviser

ended 20. September 2024

Dear planning community

Research from the CFP Board found that in the US on average CFP professionals earn 10% more than other financial planners after controlling for other factors like job experience, company size and the type of services they offer.

To what extent do you believe there is a monetary benefit to being certified in the UK?

What motivated you to become certified in the first place? What other benefits does being a CFP bring?

The Board has also launched an ad campaign to attract more young people to the profession in the US. What do you think would be an effective way to get graduates and other young people interested in financial planning?

Which body or organisation should be stepping up in the UK (if any)?

I really look forward to hearing from you! It's for a piece for FT Adviser.

Many thanks

Carmen

1 responses from the Newspage community

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Philip Dragoumis
Director and Owner at Thera Wealth Management
There is a monetary benefit but not because you hold the qualification. Clients are often confused with the various designations and rarely do they seek out a CFP or a Chartered Financial Planner.

The CFP exams and coursework are the best and only way for advisers to learn how to construct a complex, rigorously tested financial plan or model for their clients. Once you learn this skill, your whole proposition reaches a far higher level than your competition. This will lead to happier clients and more referrals and higher revenues.

Advisers think that having letters after their name is a route to riches. It is not. It is a means to an end. Only the CFP course in my opinion teaches you how to be a better financial planner. The CII Chartered route is a test of your memory. In the age of search engines, and rapidly changing legislation it is ultimately useless.