Earlier this month, CFP Board shared with you a joint statement of CFP Board, the Financial Planning Association and the National Association of Personal Financial Advisors announcing our intent to work together in response to pending regulatory reform in Congress. That announcement was followed by an invitation to participate in a survey on issues related to regulatory reform. As we work jointly on a proposal regarding regulatory reform, we want to make sure that it both serves the public and effectively represents our financial planning community.

At the Board of Directors’ November meeting, we passed a resolution to adopt a statement that, when joined with CFP Board’s mission statement, clarifies the accountability of the Board of Directors and its work on behalf of CFP Board’s stakeholders: “CFP Board’s Mission is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for personal financial planning. The Board of Directors, in furthering CFP Board’s mission, acts on behalf of the public, CFP® certificants and other stakeholders.” The additional statement highlights CFP Board’s mission to benefit the public, as well as the central role CFP® certificants play in that mission. CFP Board works to establish the highest standards for financial planning that benefit the public, but it is the competent and ethical financial planning services delivered each day by CFP® certificants that benefits the public directly.

The Board seeks to ensure that the views of CFP® certificants and our other stakeholders inform our work, and we appreciate hearing from CFP Board’s stakeholders. You can read more about our November meeting, and other recent meetings, on CFP Board’s Web site at www.CFP.net/aboutus/bodmeetings.asp. You’re welcome to send your comments and thoughts to the Board of Directors at BOD@CFPBoard.org.

As I wrap up my term as Chair of CFP Board’s Board of Directors and pass those duties to Marilyn Capelli Dimitroff, CFP®, I’d like to thank all of you who shared your time, talents and insights to further CFP Board’s work during 2008. I’ve learned a lot from all corners of our community during the past year. And as CFP Board renewed its involvement with the international financial planning community, I had the opportunity to learn more about what has truly become a global financial planning profession. While recent months have been challenging for all of us involved in financial planning, I hope no one underestimates the value our work with clients contributes to the greater good of our communities. I wish you all professional and personal fulfillment in the coming years.

David G. Strege, CFP®
2008 Chair, Board of Directors
CFP Board

Contact CFP Board’s Board of Directors at BOD@CFPBoard.org.

Thank you to those of you who participated in our last Business Update Webinar, during which David Strege, Marilyn Capelli Dimitroff and Bob Glovsky shared an overview of CFP Board’s plans for 2009. Much of our work in the coming year will focus on Advocacy and Communication activities designed to increase the public recognition of the value of financial planning and the CFP® certification.

As we work toward increased recognition of the financial planning profession and the value of the CFP® certification, we’re finding that the high standards for CFP® certification receive a very favorable reception. We’re also encountering good questions. One question that comes up from time to time is whether CFP Board’s disciplinary process, which has traditionally been administered by CFP® professionals, offers the public an impartial process for reviewing complaints.

Anyone who knows the dedicated CFP® professionals who have served on our Disciplinary and Ethics Commission (“Commission”) or volunteered to participate on hearing panels knows how seriously they take their duties and how careful they are to maintain impartiality as they review cases. They understand that CFP Board’s active enforcement of its ethical standards is one of the key elements that distinguishes the CFP® certification from the hundred or so other financial designations, and they are committed to maintaining a disciplinary process that is fair to the certificants whose conduct comes under scrutiny and one that is credible to the public.

While the perception that CFP® certificants may not be able to provide an impartial process when reviewing the conduct of other CFP® certificants may be unfounded, it’s the type of perception that has led other professional review bodies to add “public” members. The inclusion of “public” members on review boards for attorneys, doctors and other professionals has become recognized as a best practice and one that enhances consumer confidence in the credibility of those processes.

Each of CFP Board’s three-member hearing panels includes at least two Commission members and up to one volunteer enlisted by the Commission to assist with a set of hearings. A longstanding provision in CFP Board’s Disciplinary Rules and Procedures has allowed for the up to one non-certificant to serve as a volunteer on a hearing panel. Our Commission has on occasion recruited non-certificants to serve in this role. To ensure that these non-certificants who participate on hearing panels bring an understanding of the financial planning situations they will review, we’ve used a rigorous selection process to identify qualified individuals.

Just as CFP® certificants are selected to participate on hearing panels based on their experience and qualities that will enhance the diversity of the hearing panel members (such as business model, firm size and geographic location), public volunteers are also identified on the basis of their experience and qualities. We limit our search to individuals who have the following experience: a background in public interest, certification or enforcement; expertise in issues impacting seniors; or who are professors of law, economics, finance and related fields. They are subjected to a thorough background check and must be of good reputation and high moral character; free of any disciplinary action by any self-regulatory organization, or any federal or state governmental agency; free of any criminal proceeding or investigation; and have no experience as a defendant or respondent in any civil action. As with the selection process for all volunteers who participate on hearing panels, input is sought from the leadership of the Commission.

Last month, for the first time, two non-certificants served on hearing panels: Robert Fleming, Esq., President of the National Elder Law Foundation, and Sally Hurme, J.D., Senior Project Manager of AARP’s Investment Fraud unit. Both are respected professionals familiar with the workings of the financial services industry, and reports from Commission members indicate that their participation on the hearing panels was productive and fostered informed discussion of the cases under review.

CFP Board intends to continue the practice of including “public,” non-certificant participants on its disciplinary hearing panels. At the same time, pursuant to the Disciplinary Rules and Procedures, our disciplinary hearing process will continue to be administered primarily by CFP® certificants, with at least two members of every hearing panel holding CFP® certification. We believe this structure is the best way to provide CFP® certificants under review with a fair process and to bolster the credibility of the process among the public.

I hope you are enjoying a happy holiday season. CFP Board’s offices will be closed January 1, 2009 for New Year’s Day, on January 19th for Martin Luther King Day and on January 20th for Inauguration Day.

Kevin R. Keller, CAE
CEO, CFP Board

Johnne Syverson, CFP®, CAP®, of Syverson Strege & Company in Des Moines, Iowa, recently met with a 72-year-old client who was debating whether to take the minimum distribution from her IRA or to give it to charity this year under the Charitable IRA Rollover rules recently enacted by Congress. Up until the end of 2009, individuals aged 70 1/2 and over can donate up to $100,000 from their IRAs to charity without incurring tax on the distributions. In different economic times, this woman would have gladly donated the money because she does not need the extra income to support her lifestyle. But her portfolio values have dropped substantially over the past few months, making her “feel poor,” explains Syverson. So she decided to hang onto the distribution this year, just in case she needed it. “There’s a sense of general fear,” Syverson says, “and people don’t know whether they will need money they might otherwise give to charity.”

This woman’s decision to hold onto her money, just in case, sounds sensible. But according to Syverson, who is also president of the International Association of Advisors in Philanthropy, “Historically, charitable giving stays the same or goes up during a recession. And certainly, charities need the money even more. It’s too soon to know if the same trend will hold true now.” But it’s not too soon to know that philanthropic planning is becoming more important to consumers, and therefore more important to financial planners as well.

A 2006 survey of registered investment advisers (RIAs), by independent charity the Fidelity Charitable Gift Fund, found that 77% of RIAs offered charitable planning or advice. Another 27% said that client interest in charitable planning had increased over the past two years. These statistics support another Fidelity Charitable Gift Fund survey, which found that 44% of wealthy clients wanted to talk to their advisers about charitable giving.

Advisers have not, however, always wanted to talk to their clients about charitable giving. “Many financial planners are not comfortable with the conversation,” says Syverson. “They may not be conversant with the necessary tools in the estate planning arena, so the subject doesn’t come up unless the client brings it up.”

At Syverson’s firm, the subject comes up in the first conversation — because the planner brings it up. “There are three aspects to a financial plan,” Syverson explains: “Planning for the client’s own financial future, planning for his or her family legacy, and planning for his or her community legacy. You have to integrate all three realms from day one. Meeting charitable goals is just like meeting any other financial goal, such as retirement or education. Charitable giving is just another player on the chessboard. And when we raise the issue, three-fourths of clients respond, ‘It’s a good idea.’”

Recognizing that most curricula and conference agendas barely touch on charitable planning, Syverson and a group of like-minded planners founded the IAAP to build knowledge and provide networking opportunities for those interested in learning more. Nadia Yassa, director of estate and gift planning at the Boston Foundation, Greater Boston’s community foundation, which provides grants to non-profits and philanthropic expertise to donors, agrees on the need for more education for planners. Yassa cites a 2000 study by non-profit advisory organization The Philanthropic Initiative that explored the roles of advisers and clients in raising the issue of philanthropy. The report, Doing Well by Doing Good—Improving Client Service, Increasing Philanthropic Capital: The Legal and Financial Advisor's Role, found that many advisers felt it was not their place to raise the topic because philanthropy is values-based. Yet the report also found that many clients wanted advisers to raise the topic.

“Philanthropy is a values-driven process,” Yassa says, “but the outcomes are financial and transactional, and they have tax consequences. Advisers willingly discuss investment strategies and succession planning, and yet are often hesitant to raise the issue of philanthropy. By definition, philanthropy should be part of an overall financial plan and part of the financial planner’s toolbox.”

Given the current economic climate, Yassa believes “donors need to think more creatively about how they give.” Planners, too, need to be creative in the charitable planning services they provide. Here’s a quick overview of some of the most common forms of charitable giving:

• Charitable Lead Trust (CLT) A CLT is an irrevocable, taxable, split interest trust. The donor funds a trust, which is invested and managed by a trustee, that pays an income to his or her specified charity for a fixed term or life. Upon termination of the trust, any remaining assets revert to the donor or to his or her designated beneficiaries.
• Charitable Remainder Trust (CRT) A CRT is an irrevocable, tax-exempt trust made up of the income interest (income paid to those establishing the trust or their beneficiaries, for life or for a fixed term) and the remainder interest (the funds left when the trust ends). Upon termination of the trust, the remainder interest is transferred to the donor’s specified charity.
• Donor-Advised Fund (DAF) A donor establishes a DAF through a gift of cash or assets and then hands over the management to an administrator, to whom the donor recommends charities to be funded. The donor recommends grants for the duration of the fund, and may also make additional contributions. DAFs may be established at community foundations or other non-profit organizations and may be named as the beneficiary of CRTs and CLTs.
• Private Foundation (PF) A PF is a tax-exempt grant-making entity established in trust or corporate form that can also receive contributions from people and institutions other than the original donor.

The Web site of charitable trust administrators Renaissance, from which these descriptions are adapted, features illustrations, case studies, and strategies for all types of charitable giving.

“Many advisors think tax savings drive charitable giving," Yassa says. "But the primary motivation for many clients is wanting to give back. What we have seen in our work with donors is that philanthropy is biography." She describes one client who was born in the Middle East, loves sailing, and suffered from cancer. He gave his money to charities working with Middle Eastern children, the environment, and cancer research. “His life story was played out through his charitable giving. Many philanthropists also want to involve children in philanthropy as a way of teaching them values."

The involvement of two or more generations in charitable giving is a smart business reason for brushing up on the basics of CLTs and CRTs. Charitable planning “sets you apart as an adviser, makes you more holistic,” Syverson says. “You work with clients with similar values, and as a result relationships are more long-lasting. Not too many people know how to use these kinds of instruments, so clients tend not to go any place.”

Plus, when children and grandchildren become involved in the giving process, you may suddenly find yourself with multi-generational clients rather than a single client. (For more information on multi-generational planning, see All in the Family: The Challenges of Multi-Generational Wealth Management in the September 2008 issue of the CFP Board Report.)

But Syverson cautions against getting involved in charitable planning solely as a business move. “Planners have to be comfortable with it themselves,” he says. “If you’re not charitable yourself, it is hard to help others to be charitable. So you first need to examine your heart. If you’re in it just to make money, clients will notice.”

So, if your heart is genuinely in charitable planning, where do you start? “Get the education,” Syverson says, “and then ask the questions that need to be asked in client meetings.”

Online Resources

American Institute of Philanthropy
The American Institute of Philanthropy (AIP) is “a charity watchdog service whose purpose is to help donors make informed giving decisions.” The AIP’s Charity Rating Guide & Watchdog Report rates more than 500 charities. The AIP Web site provides information on the charities it rates and its grading methods.

International Association of Advisors in Philanthropy
The International Association of Advisors in Philanthropy (IAAP) is a professional network dedicated to mastering and promoting the principles and practices of client-centered charitable giving. The IAAP holds an annual conference as well as regular teleconferences, during which noted experts provide tips and strategies to help advisors make philanthropic planning an integral part of their practice.

National Committee on Planned Giving
The mission of the National Committee on Planned Giving (NCPG) is to “increase the quality and quantity of charitable planned gifts by serving as the voice and professional resource for the gift planning community.” To this end, the NCPG encourages the education and training of the planned giving community and is also one of the founders of the International Gift Planning Alliance.

Planned Giving Design Center
The Planned Giving Design Center features articles, case studies, and technical reports detailing the various forms of charitable giving as well as PhilanthroCalc, a gift planning calculator that provides financial and tax benefit reporting and is free of charge to registered members.

- James Geary

Download the FAQ on CFP Board's Revised Standards (PDF format)

January 1, 2009 is the enforcement date of CFP Board’s revised Standards of Professional Conduct. When CFP Board receives information about potential misconduct by CFP® certificants that took place on or after January 1, 2009, that information will be reviewed under the revised Standards. Conduct that took place before January 1, 2009 will be reviewed under the previous version of CFP Board’s Standards.

Since the May 31, 2007 announcement of CFP Board’s adoption of the revised Standards, CFP Board has developed materials to assist CFP® certificants with implementing them in their practices, including frequently asked questions, comparison charts showing the revised Standards beside the previous Standards, and sample disclosure documents.

A recent Webinar designed for CFP® certificants and compliance professionals who support CFP® certificants covered implementation strategies for CFP Board’s revised Standards. More than 700 individuals attended this Webinar focused on strategies that certificants and firm compliance officers have used to comply with CFP Board’s Standards and included an in-depth case study of a CFP® certificant providing services in a broker-dealer environment within a bank.

Panelists for the Webinar included Marilyn Capelli Dimitroff, CFP®, 2008 Chair-Elect of the Board of Directors of CFP Board, and Alan Goldfarb, CFP®, a member of the Board of Directors. Michael P. Shaw, Esq., Managing Director for Professional Review and Legal, served as moderator. In addition to the presentation, the panelists addressed many questions from the audience.

A recording of the Webinar is now available at https://www2.gotomeeting.com/register/389460289. The presentation used during the Webinar is also available for download on CFP Board’s Web site at www.CFP.net/teamup/events.asp#webinar.

The updated Standards and related materials are available for download and review at www.CFP.net/aboutus/Standards.asp. Questions about the updated Standards may be sent to standards@CFPBoard.org.

CFP Board Bands Together with FPA and NAPFA to Pursue Consumer Protection and Industry Reform

The three major financial planning organizations in the United States – Certified Financial Planner Board of Standards, Inc., Financial Planning Association®, and National Association of Personal Financial Advisors – have announced that they are holding a series of exploratory meetings to discuss a unified response to widely expected reform of the financial services industry in the 111th Congress.

“We are very pleased to have opened positive lines of communications within the financial planning community to discuss an issue that is so critical to consumer protection,” the group said in a joint statement. “As a component of regulatory reform, we anticipate that, at some point in the near future, Congress will consider enhanced protections for consumers of financial services.”

Read the joint statement.

Report from November 2008 Board of Directors Meeting

CFP Board’s Board of Directors met in Miami, Florida on November 12-14, 2008. During the meeting, following a discussion of Board governance issues, the Board accepted the following elaboration of its mission statement: “The mission of CFP Board is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for personal financial planning. The Board of Directors, in furthering CFP Board’s mission, acts on behalf of the public, CFP® certificants and other stakeholders.”

The Board announced the election of two new members to the Board: Raymond Ferrara, CFP®, President and Chief Executive Officer of ProVise Management Group LLC, of Clearwater, Florida, and Joan S. Wise, Executive Vice President and General Counsel for AARP. Mr. Ferrara and Ms. Wise will begin four-year terms on the Board beginning January 1, 2009.

While engaged in the process of selecting new members, the Board’s Nominating Committee worked to establish enhanced guidelines for identifying the competencies required to successfully fulfill the role of director on the Board, as well as the key tasks, accountabilities and outcomes for which Board members are responsible. The enhanced guidelines will be incorporated in materials used to solicit potential Board members.

The Board also reviewed proposed changes to CFP Board’s Disciplinary Rules and Procedures to further clarify the roles and responsibilities of the Disciplinary and Ethics Commission (“Commission”). Following the Board’s discussion of the proposal with Daniel Moisand, CFP®, 2008 Chair of the Commission, who coordinated the proposal with a group of current and former Commission members, the Board appointed a task force of Board members to further review the proposal and seek additional input as appropriate.

CFP Board staff presented the Board with its 2009 Business Plan and Budget, including an update on the progress made by the Board’s Audit and Finance Committee to develop an investment policy statement for the investment of the organization’s reserve funds. The 2009 Business Plan includes increased focus on the Advocacy and Communication objectives of the organization’s strategic plan.

Read summaries of other recent Board of Directors meetings at www.CFP.net/aboutus/bodmeetings.asp

Report from November 2008 Disciplinary and Ethics Commission Meeting

The Disciplinary and Ethics Commission (“Commission”) held its final meeting and hearings of the year on November 6 and 7, 2008. The Commission considered 23 disciplinary cases. Four cases were dismissed, seven cases resulted in the issuance of private censure letters, three cases resulted in decisions to issue public letters of admonition, and five matters resulted in decisions either to suspend an individual's right to use the CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame design) certification marks (the “CFP® marks”) or to permanently revoke or relinquish an individual’s right to use the CFP® marks. Because the appeal periods in these cases have not expired, the disciplinary actions are not yet final. The Commission also imposed two interim suspensions related to pending cases and reviewed three Petitions for Reconsideration and Reinstatement to use the certification marks, one of which was granted, one denied, and one delayed (the delayed reinstatement is included among the suspensions listed above).

The Commission's meetings would not be possible without the assistance of many dedicated volunteers. Dan Moisand, CFP® of Melbourne, Florida is the 2008 Chair of the Commission, and Jack C. Harmon, Sr, CFP® of Atlanta, Georgia will be the Chair of the Commission in 2009. In addition to the ongoing support of the Disciplinary and Ethics Commission members, the November 2008 meeting included the assistance of Linda A. Gelfand Leibig, CFP® of Goffstown, New Hampshire, who has held CERTIFIED FINANCIAL PLANNER™ certification since 1991. The November 2008 disciplinary hearings also marked the first time that more than one non-certificant, public volunteer served as a hearing panelist. The two public volunteers were Robert Fleming, Esq., President of the National Elder Law Foundation, and Sally Hurme, J.D., Senior Project Manager of AARP’s Investment Fraud unit. CFP Board is grateful to these volunteers who serve to protect the public by helping to enforce CFP Board's Standards of Professional Conduct.

Proposed Revisions to Disciplinary Rules and Procedures to Be Released for Comment

During 2008, CFP Board’s Board of Directors has worked with the Disciplinary and Ethics Commission (“Commission”) to develop proposed revisions to CFP Board’s Disciplinary Rules and Procedures designed to further clarify the roles and responsibilities of the Commission. The proposed revisions will be released for public comment, and CFP® certificants and other CFP Board stakeholders will receive notice of the comment period in January 2009.

Ferrara and Wise Join CFP Board’s Board of Directors

CFP Board’s Board of Directors has named a veteran CERTIFIED FINANCIAL PLANNER™ professional and a leading advocate for senior citizens to four-year terms on the Board of Directors.

Joining the Board of Directors beginning January 1, 2009, are:

Raymond Ferrara, CFP®, President and Chief Executive Officer of ProVise Management Group LLC, of Clearwater, Fla. A CFP® practitioner for 37 years, Ferrara has been actively involved in CFP Board functions and currently is a member of CFP Board’s Disciplinary and Ethics Commission. Active in his community, Ferrara serves on the boards of directors of Morton Plant Mease Healthcare Systems and BayCare Health System, and is vice chair of Eckerd Youth Alternatives, Inc. He also is a member of the Financial Planning Association’s Leadership Development Committee.

Joan S. Wise, Executive Vice President and General Counsel for AARP, the leading nonprofit, nonpartisan membership organization for people age 50 and over in the United States. Wise is a member of the AARP executive management team and counsels the AARP Board of Directors on issues involving corporate governance, ethics, risk management and parliamentary procedures. Before joining AARP, Wise was Assistant Attorney General in the Consumer Protection Division of the Maryland Attorney General’s Office.

“We welcome the new directors who join us in our important mission to benefit the public,” said 2009 Board Chair Marilyn Capelli Dimitroff, CFP®. “The experiences and strengths that Ray and Joan bring to the Board of Directors are assets that will complement those of our outstanding current Board members. 2009 will be an important year for CFP Board as we move forward with our goals of becoming a more vigorous advocate for the public’s interest and making a meaningful impact in our nation’s public policy.”

FPSB Names Karen Schaeffer, CFP® to Its Board of Directors

At its November meeting, Financial Planning Standards Board (FPSB), owner of the CFP, CERTIFIED FINANCIAL PLANNER and CFP Logo marks outside the U.S., named Karen Schaeffer, CFP® to its 2009 Board of Directors. Schaeffer, who served as 2007 Chair of CFP Board's Board of Directors, will begin her three-year term 1 January 2009.

“Each of the board candidates went through a rigorous international nomination and review process to determine attributes such as leadership ability, board or corporate governance and strategic planning experience,” said Selwyn Feldman, CFP, FPSB Board chairperson. “We were extremely pleased with the depth and breadth of all the candidates we reviewed, but ultimately, Karen Schaeffer impressed us with her depth and breadth of experience in the US financial planning sector, for her range of experiences leading national associations and for her deep understanding of the issues facing those involved in financial planning across borders.”

Schaeffer is the managing member and co-founder of Schaeffer Financial LLC, a financial consulting firm in suburban Washington, D.C., where she has developed a diverse client base including professional women, Foreign Service officers, foreign nationals and federal government employees. In addition to serving on CFP Board’s governing body, Schaeffer was instrumental in facilitating the merger of two associations to form the US-based Financial Planning Association. Schaeffer also is a popular lecturer and seminar leader, with publishing credits including articles in Business Review, Best’s Review, and the Financial Planning Encyclopedia. She also co-authored a book entitled Education Savings Planning Guide<.

“I’m pleased to be selected by FPSB as a board member and to have the opportunity to continue my contribution to establishing financial planning as a respected profession, now at a global level,” said Schaeffer. “As the world faces difficult economic times, organizations like FPSB are critically important to help consumers understand how working with an ethical, competent financial planner can help them achieve their life goals.”

FPSB is governed by a nine-member board representing eight countries, and is supported by the FPSB Council, an advisory group representing 23 organizations that manage, or are preparing to manage, CFP certification programs in their respective territories. Territories where FPSB has a nonprofit member organization include: Australia, Austria, Brazil, Canada, Chinese Taipei, France, Germany, Hong Kong, India, Indonesia, Ireland, Japan, Malaysia, New Zealand, the Netherlands, the People’s Republic of China, the Republic of Korea, Singapore, South Africa, Switzerland, Thailand, the United Kingdom and the United States.

Five Grant Awards Made Through CFP Board’s 2008 Financial Planning Grants Program

CFP Board has awarded grants totaling $199,390 to five projects designed to help the public realize the benefits of financial planning and working with CERTIFIED FINANCIAL PLANNER™ professionals.

The 2008 grant award recipients, and their programs, are:

AccountAbility Minnesota of St. Paul, Minn. will expand the financial planning services it makes available through volunteer CFP® professionals to consumers who take advantage of its Volunteer Income Tax Assistance (VITA) programs across the state of Minnesota.
 
Capital Area Asset Builders of Washington, DC will expand the financial planning components of its financial education programs and provide its low- and moderate-income constituents with access to volunteer CFP® professionals through events and online resources.
 
Institute for Financial Planning Education of Castro Valley, Calif. will develop an online system to support and expand the reach of a day-long workshop created by Dr. Douglas Rice, CFP® that helps low- to moderate-income attendees establish a step-by-step financial plan.
 
University of California, Irvine, University Extension of Irvine, Calif. will translate its online Fundamentals of Personal Financial Planning program into Spanish, extending the demographic reach of this introduction to the personal financial planning topics involved in the education and examination requirements for CFP® certification. The English version of the program was developed with the aid of a 2006 CFP Board grant and is available to the public free of charge through the University’s Open Courseware program (http://ocw.uci.edu/courses/AR0102092/).
 
University of Northern Colorado Foundation – Monfort College of Business of Greeley, Colo. will use funding from CFP Board for an Internet-based financial planning module in its “First Year Experience” course required of all incoming business students. The module includes interactive tools, video, and a chat application monitored by volunteer CFP® professionals, and the project involves faculty and students from the University’s CFP Board-registered financial planning education program.

The grant awards further CFP Board’s mission to uphold the CFP® certification as the recognized standard of excellence in personal financial planning. CFP Board provides funding to organizations that develop innovative and sustainable programs that help people better understand the benefits of financial planning and increase access to competent and ethical financial planning.

“CFP Board values public education as a vital part of our goal of advancing public awareness of the value of financial planning and the CFP® certification,” said David G. Strege, CFP®, Chair of CFP Board’s Board of Directors. “These organizations and their programs are reaching Americans who might not otherwise understand the benefits of financial planning services delivered by professionals who hold CERTIFIED FINANCIAL PLANNER™ certification.”

The grant awards were made through CFP Board’s Financial Planning Grants program, which was introduced in 2006 and has provided grant funding totaling $1,447,262 to 33 projects across the U.S. Through the grant program, CFP Board has provided financial support to non-profit organizations, educators and CFP® professionals involved in a wide variety of activities, ranging from innovative uses of technology that expand public access to financial planning to creative partnerships delivering financial planning information and assistance through libraries, high schools, colleges and community-based organizations. Additional information about CFP Board’s grant program is available at www.CFP.net/grants.

CFP Board Grant Recipient Update: Mind’s Eye Resource Management

Like practically every other sector affected by the downturn, the food and hospitality industry is feeling the pinch. Eating out, practically a way of life for many Americans, is beginning to feel like a luxury rather than a necessity. Companies are scaling back holiday parties. Restaurants are hiring fewer additional staff for the festive season. Caviar and foi grois are giving way to meatloaf and mashed potatoes.

The good news, says Kathleen Bowen, CFP®, of Mind’s Eye Resource Management in Denver, Colo., is that “people still need to eat three times a day.” With help from a CFP Board grant, Bowen has spent the past year or so crisscrossing the country conducting workshops for food industry professionals at the regional and national meetings of the American Culinary Federation (ACF). To date, she’s talked with over 2,000 chefs, cooks, servers, owners, franchisees, and others about the importance of saving, investing, and paying themselves first. And this grounding in the basics of financial panning couldn’t have come at a better time.

“Curiosity [about financial planning] is high,” says Bowen, “but knowledge is basic. Very few chefs have any money at all. Most live from week to week, pay check to pay check. A few corporate chefs may have 401(k)s, but most don’t. And even those who do aren’t contributing the maximum amount or taking maximum advantage of employer matches. That’s scary for an industry that works so hard delivering world-quality food and world-class service.”

The food and hospitality industry, the second largest employer in the U.S. after the Federal Government, is an enormously underserved demographic. Bowen is reaching out to the industry through her workshops and through The Investing Chef, a division of Mind’s Eye Resource Management specifically devoted to the culinary industry.

Bowen’s 90-minute workshops — called, appropriately enough, “Feeding Your Financial Future” — cover the basics of saving, investing, tax and retirement planning, and business succession. The goal, she says, is to “get people to think about planning rather than procrastinate. I encourage them to write down a plan and then work that plan. I tell them it’s important to write down the goals. Maybe they can’t all be accomplished, but you have to start slowly. If you have a road map, then you know where you’re going and how to get there.”

Bowen also tries to show participants that they already have the skills needed for successful financial planning, that writing up a budget, for example, is as straightforward as writing up an order for the week’s menu. “Food industry people are trained in how to calculate,” she explains. “They are good with numbers. They order food, prepare menus, set prices, manage inventory — these are the same kinds of skills needed for financial planning!”

The biggest issue for many food industry professionals, Bowen says, is how to get started. They feel intimidated by the process and mystified by the terminology. So Bowen keeps it simple: “I try to get the community to embrace the concept of paying yourself first. Start small, by saving $25, $50 or $100 a month. Start tucking away some money for retirement or children’s education. So many people work so hard and have nothing to show for it, something is better than nothing.”

For people with smaller amounts, Bowen suggests money market funds as a good introduction to saving. For people with a little bit more cash, she suggests looking at a balanced portfolio of investments, though that can be a hard sell under current market conditions. “There is a psychological barrier to overcome,” she says, “but I recommend investing even now, especially now. The name of the game is still buy low, sell high.”

Bowen plans to continue with her ACF workshop presentations next year, and possibly expand her reach into other groups involved in the food and hospitality sector. No doubt she will be in high demand as the industry’s appetite for financial planning increases.

Read the original profile of Mind’s Eye Resource Management and the Investing Chef in the February 2008 issue of CFP Board Report.

Read more about projects receiving funding through CFP Board’s Financial Planning Grants program.

CFP® Marks in the News

CFP® certification received attention in recent editions of several prominent publications, including the New York Times, The Washington Post, Forbes, US News & World Report and the Wall Street Journal. Read these notable media references to the CFP® certification at www.CFP.net/certificants/marksinthenews.asp.

CFP Board continues its efforts to promote awareness of CFP® certification among media outlets and the audiences they serve. Those efforts are greatly enhanced by the many CFP® professionals who are engaged in their own efforts to reach national and local media with the message of the benefits of financial planning and working with a CFP® professional. We appreciate all of you who help further awareness of CFP® certification across the country through your media contacts and your involvement in your communities.

Accomplishments of CFP® Certificants

CFP Board congratulates the following CFP® professional on his professional activities and accomplishments:

Morris Armstrong, CFP®, for his firm, Armstrong Financial Strategies, being voted as one of the best financial planning firms in Connecticut by lawyers participating in the 4th annual survey of the Connecticut Law Tribune.

Kevin Beckner, CFP® of Tampa, Florida, for his election to the Hillsborough County Commission.

Thomas Beirne III, CFP®, for his appointment as Vice President of Halsey Associates, Incorporated located in New Haven, Connecticut.

CFP Board welcomes information about the activities and accomplishments of CFP® professionals. If you have information you would like to share with CFP Board, please contact us at mail@CFPBoard.org.

CFP Board Thanks Its Volunteers

Many of CFP Board's activities would not be possible without the generous contributions of CFP® certificants and other CFP Board stakeholders willing share their time and expertise. CFP Board thanks the many talented individuals who have assisted CFP Board in various capacities throughout 2008.

From the Board of Directors members who set policy and direction for CFP Board's activities, to the Disciplinary and Ethics Commission members who keep CFP Board's disciplinary review process functioning, to the Council on Examinations members who work to sustain the integrity of the CFP® Certification Examination and the other volunteers who support exam development activities, to the members of CFP Board’s inaugural Council on Education and Public Policy Council, to the educators who shared their experience and research at CFP Board's Program Directors Conference, to the many CFP® certificants who presented workshops and provided consumers with free consultations at CFP Board’s Financial Planning Clinic in Washington, DC and Financial Planning Clinic in Miami, the leadership of CFP Board would like to extend appreciation to all who contributed to CFP Board during 2008.

Learn more about volunteer opportunities with CFP Board at www.CFP.net/aboutus/opportunities.asp.

Hundreds of Consumers Connect with CFP® Professionals at CFP Board’s Financial Planning Clinic in Miami

On November 15 the Hyatt Regency at Miami Convention Center was the bustling site of CFP Board’s 4th Financial Planning Clinic which connected hundreds of Miami consumers with CERTIFIED FINANCIAL PLANNER™ professionals who provided guidance to a host of financial planning issues, including retirement and investment planning, debt management, tax planning, college funding, insurance and employee benefits. On hand were 88 CFP® professionals, some from as far as New York and Texas, who volunteered their time and expertise to educate consumers on the benefits of working with a financial planner who holds CFP® certification, the recognized standard of excellence for personal financial planning.

The event was kicked off with a welcome address by CFP Board’s CEO Kevin Keller and a keynote speech by Larry Spring, the Chief Financial Officer of the City of Miami, who conveyed the City’s appreciation to the volunteers for providing valuable guidance and advice to help Miami residents cope with today’s uncertain economic times. David G. Strege, CFP®, 2008 Chair of the Board of Directors, briefed the volunteers on CFP Board’s current initiatives and Marilyn Capelli Dimitroff, CFP®, Chair-Elect of the Board of Directors, discussed the objectives of the Financial Planning Clinic program and laid out the day’s events.

When the Clinic opened to the public, each consumer attended a brief orientation session that included information about the value of CFP® certification and the examples of financial questions that volunteers will be able to assist with. Attendees were also given a program book that included the names and contact information for volunteer CFP® professionals who were on hand to meet one-on-one with consumers to discuss their financial questions and concerns in a pressure-free, no-sales environment. CFP® professionals also presented sixteen 50-minute educational workshops on topics such as Young Professionals: Launching Your Financial Plan, Managing Debt, Investment Planning for Retirement Assets, Financial Planning for Small Business and Living Beyond Paycheck to Paycheck.

The Miami Clinic attracted a lot of attention from local media outlets and community groups, many of whom were unfamiliar with CFP® certification and CFP Board prior to the event. The Miami Herald promoted the Clinic to its readers and also sent reporters to the Clinic to write a post-event story. Univision Channel 23 was the official media partner and promoted the Clinic through an interview with a local CFP® professional and Public Service Announcements on its station as well as on its sister station Telefutura 69. The City of Miami was the official event sponsor and helped turn out attendance along with a dozen other community-based organizations from the Miami area.

CFP Board would like to thank the following members of the Miami Advisory Group for their dedication and help in promoting the Financial Planning Clinic to local community and media groups: Vielka Burey-Jacas, CFP®, Kenneth Eaton, CFP®, John Espinosa, CFP®, Scott Farber, CFP®, Elaine King, CFP®, Charles Sachs, CFP®, Ellen Siegel, CFP®, Eric Smith, CFP®, Elliot Weissmark, CFP® and Jason Whitby, CFP®.

CFP Board’s Leadership Shares 2009 Plans During Business Update Webinar

On November 17, members of CFP Board’s leadership provided CFP® certificants and other CFP Board stakeholders with a look ahead to CFP Board’s activities during the coming year through a Business Update Webinar. The Webinar was presented in an interactive format hosted by Daniel Moisand, CFP®, 2008 Chair of CFP Board’s Disciplinary and Ethics Commission. Panelists David G. Strege, CFP®, 2008 Chair of CFP Board's Board of Directors, Marilyn Capelli Dimitroff, CFP®, 2008 Chair-Elect of the Board of Directors, Robert J. Glovsky, CFP®, 2009 Chair-Elect of the Board of Directors, and Kevin R. Keller, CAE, CFP Board's CEO, provided updates on CFP Board’s recent and upcoming activities and shared CFP Board’s plans for increased consumer outreach and promotion of the CFP® marks in 2009. The Webinar also featured updates on the implementation of revised ethical standards for CFP® certificants and CFP Board’s increased involvement in discussions on public policy issues affecting the financial planning profession. Questions from the audience were also addressed.

A recording of the Business Update Webinar is now available through CFP Board’s Web site at www.CFP.net/aboutus/webinars.asp.

Webinar Addresses Strategies for Implementing CFP Board’s Ethical Standards

On November 5, 2008, CFP Board held a Webinar designed for CFP® certificants and compliance professionals who support CFP® certificants that covered implementation strategies for CFP Board’s revised Standards of Professional Conduct, which has an effective date of July 1, 2008 and an enforcement date of January 1, 2009. More than 700 individuals attended this Webinar focused on strategies that certificants and firm compliance officers have used to comply with CFP Board’s Standards of Professional Conduct and included an in-depth case study of a CFP® certificant providing services in a broker-dealer environment within a bank.

Panelists for the Webinar included Marilyn Capelli Dimitroff, CFP®, Chair-Elect of the Board of Directors of CFP Board, and Alan Goldfarb, CFP®, a member of the Board of Directors. Michael P. Shaw, Esq., Managing Director for Professional Review and Legal, served as moderator. In addition to the presentation, the panelists addressed many questions from the audience.

A recording of the Webinar is now available at https://www2.gotomeeting.com/register/389460289. The presentation used during the Webinar is also available for download on CFP Board’s Web site at www.CFP.net/teamup/events.asp#webinar.

• Summary of November 2008 Board of Directors Meeting
• Recording of Ethics Webinar for Compliance Professionals
• Recording of Business Update Webinar
• Overview of recent Financial Planning Clinic in Miami

FINRA Investor Education Foundation Grant Program

The FINRA Investor Education Foundation General Grant Program funds research or educational projects that provide underserved Americans with the knowledge, skills and tools necessary for financial success throughout life. The priorities for their 2009 Grant Program include topics that may be of interest to CFP® professionals or financial planning educators:

• Using behavioral finance to improve saving and investing
• Meeting the financial and investor education needs of underserved audiences
• Creating new marketing and distribution channels for financial and investor education
• Helping Americans manage their finances and investments in retirement

To apply for funding, applicants must first submit a simple, three-page Project Concept Form. Those whose projects closely align with the Foundation's priorities and show good potential for success will then be invited to submit a full grant proposal. Project concepts received by Wednesday, February 4, 2009 will be eligible for a June 2009 funding decision.

Those interested in learning more are invited to attend conference calls for prospective applicants, one on January 6, 2009 (2pm ET) and one on January 8, 2009 (11am ET). For complete information and conference call registration, please visit the Grants page on the FINRA Foundation Web site.

Financial Frontiers Award Program

The Financial Frontiers Awards are cash awards for outstanding research papers in financial planning. The awards were created to encourage and showcase new ideas and practical solutions that can help financial advisors and their clients. Research categories include techniques in financial planning (a technical, research-based approach to all facets of financial planning and wealth management) and concepts in financial planning (advanced “think pieces” that examine financial planning from a conceptual and thought-provoking perspective, addressing all facets of financial planning and wealth management). Submissions may extend current theory or practice, identify new areas of inquiry, or be original insights on the science of financial planning and wealth management.

The deadline for submissions is March 3, 2008, and entries can be submitted by the early deadline of January 31, 2008 with a discounted entry fee. For more information, visit www.financialfrontiersawards.org/.