Adding Expertise to a Financial Advisor’s Practice: Measuring the Contributions of CFP® Professionals
Report Summary
Adding Expertise to a Financial Advisor’s Practice: Measuring the Contributions of CFP® Professionals
Relative to other advisors, CFP® professionals add significant value to wealth management firms by increasing revenue and client satisfaction.
Boston, July 30, 2012 – A new report from Aite Group identifies and quantifies the benefits of Certified Financial Planner® certification, the well-known financial planning designation held by roughly 20% of U.S. financial advisors. The report, commissioned by the Certified Financial Planner Board of Standards Inc., is based on data gathered through a March 2012 online Aite Group survey of 515 U.S. financial advisors; advisor performance data contributed by a top 50 U.S. financial services firm; and Aite Group interviews with financial planning and advisor training executives at seven leading U.S. wealth management firms.
Brokerage and RIA firms are striving to become recognized as wealth managers capable of managing not only clients’ investments, but also their risk and asset-transfer needs. To execute this wealth management strategy, firms need to grow advisor expertise in areas of wealth management outside investments. The study finds that because CFP® certification is designed to provide advisors with a holistic education, CFP® professionals are essential to team practices that cater to the complex and diverse needs of high-net-worth individuals. In addition, the study shows that CFP® professionals are more likely to engage clients in long-term financial planning-based relationships and are significantly more productive than other advisors.
“Wealth management firms that plan to use advice as a differentiator need to get strategic about growing and managing the quality of the advice they provide,” says Sophie Schmitt, senior analyst with Aite Group and author of this report. “This should involve investing in designation programs that are proven to improve the quality of financial advice. Aite Group’s study validates that CFP® certification enhances the scope and quality of advisors’ services, leading to higher client satisfaction.”
This 52-page Impact Report contains 34 figures and two tables. Clients of Aite Group’s Wealth Management service can download the report.